An employee agrees to give up part of their cash salary in return for a vehicle benefit. The arrangement requires an agreed employment-contract change, and tax and National Insurance treatment depends on the benefit and circumstances.

An affinity scheme gives an eligible group access to vehicle offers through an organisation or membership. It does not automatically involve giving up salary. Confirm who signs the agreement, how payments work and which eligibility conditions apply to the proposed offer.

Eligibility depends on scheme rules and individual circumstances. Salary sacrifice must not reduce cash earnings below the applicable National Minimum Wage. Employers also need to consider effects on statutory pay, pensions and other earnings-related benefits.

Review rentals, included services, excluded costs, tax treatment and payroll requirements. Confirm responsibility for charges and what happens during absence, a change in circumstances or early termination. Check any protections and exclusions in the actual agreement.

Do not assume this for every arrangement. Assess the proposed scheme’s costs, any potential savings and the employer’s commitments. Your payroll or tax adviser should confirm the position for your organisation.

Yes. Speak to us about working alongside your existing provider as a nominated supply partner for Volkswagen, Škoda, SEAT and CUPRA. We can discuss the scope of vehicle supply and handover support.