Salary Sacrifice

IT’S A WIN-WIN-WIN

Good for businesses. Good for employees. Better for the planet.

Our new salary sacrifice scheme for leasing EVs and hybrid cars is here to help businesses reward and retain their teams, help staff switch to low emission cars sooner, and help support company green goals.

Find your deal

Refer your employer

What's included?

Lease a brand new electric or hybrid vehicle for 2, 3 or 4 years, with no deposit or credit check.

Rental costs of brand-new car
Vehicle tax
Fully Comprehensive Insurance
Servicing and maintenance
Replacement tyres and glass

AA breakdown cover
Accident management
Increased end of contract damage waiver
Early termination protection
Charge point, if suitable (additional charge applies).

Benefits

The salary exchange scheme is like other salary sacrifice schemes, such as childcare, cycle to work schemes, or pension contributions. Payments are taken from your gross salary, before tax and any other contributions are deducted.

Some of the scheme benefits are:

Tax efficient: the scheme includes maintenance, servicing and insurance on top of the car rental costs, so that you can maximize your tax savings.
Access to the latest EVs: a wide range, to suit your needs, from city cars to family SUVs, helping you to reduce your carbon footprint.
Fixed monthly payments, so you can budget effectively and avoid any unexpected costs.
All inclusive: all day-to-day costs of running your car are included. You just need to charge it up, and you are free to go.
Drive a brand-new car, meaning you can enjoy the latest entertainment, technology, safety features and reliability.
Additional drivers: you can insure another family member on the car.
No personal credit checks

Get your salary exchange car entirely online

Browse the available cars and get a quote

Select ‘place your order’, this will then be sent to The AA HR Team for approval

A check is required to ensure your earnings will not fall below the National Minimum Wage

On HR’s approval, the order will be placed, and you will be contacted by the dealer

Please check the manufacturer lead times before you order.

Get a quote

How long does the process take?

After you submit you request, HR and your manager will review and approve the application (after checking that the salary exchange deduction does not reduce your earnings below the National Minimum Wage). This is usually done within 2 weeks.
Upon approval, the order will be reviewed by LeasePlan who normally place the order with the manufacturer within a few days. Occasionally the manufacturers change the pricing from the published price. If this happens you’ll be contacted for the process to follow.
All vehicles are ordered with the manufacturer based on your specific requirements. Please make sure you have checked the manufacturer lead times and are comfortable with them.

How much can I save?

The example below is based on marginal tax rate of 40% and shows a comparison of leasing a car via the AA Salary Exchange scheme vs leasing directly.

	AA EV Salary Exchange	Standard personal lease
Basic monthly cost	£395.72	£474.86 (£395.72 + VAT)
Insurance, servicing & maintenance	£78.63	£94.36 (£78.63 + VAT)
Gross salary sacrifice	£474.35	£569.22 (£474.35 + VAT)
Salary tax benefit	£185.50	none
Net cost to you	£288.85 (49% cheaper)	£569.22

Sample deals on popular vehicles*

Tesla Model Y

Vehicle value: £42,850

Sample net cost: £401 pm

Kia Niro EV

Vehicle value: £36,640

Sample net cost: £311 pm

Mini electric

Vehicle value: £28,945

Sample net cost: £268 pm

... your next car

Find out more

* The final price will be based on your personal circumstances. The prices displayed have been obtained based on a 5k annual mileage, a 4 years term, a 40% marginal tax rate, a good driver profile - without a recent history of accidents or convictions - and using a Central London postcode. Tax benefits for hybrid vehicles are lower than for pure electric ones. Figures correct as of 20 February 2023.

Get a free quote today

Log into the AA Salary Exchange site below to view the available vehicles and get a free personalised quote online.

Have an account already?

If you already have an account for the AA Salary Exchange scheme site, provided by LeasePlan UK, just continue with the button below.

Not registered yet?

You will first need to create your profile with your "@theaa.com" email address, so that you can get the personalised quotes. It only takes a few minutes.

FAQs

When will the first deduction be taken?

In most cases the first deduction is taken from your first payslip after taking delivery of the vehicle.

Can I insure an additional driver?

Yes. You can add an additional named driver, but they will need to be a partner or spouse living at the same address.

Please note that your additional driver is not covered for business use.

What is Benefit in Kind (BIK) and what is the liability for a pure electric car under Salary Sacrifice?

Benefit in Kind is the tax individuals pay for a vehicle provided by their employer as a benefit. You will be taxed based on the list price of the car.

The Benefit in Kind tax (BIK) rate for full electric vehicles is 2% for 2022/23, 2023/24 and 2024/25. Beyond this there is no government clarity yet.

So, to calculate the BIK tax due, you multiply the list price of the vehicle by the BIK rate by your personal tax rate. Dividing the result by 12 gives your monthly BIK liability. For example, a £30,000.00 electric vehicle x 2% would be £600.00. Multiply this by your personal tax rate (usually 20% or 40%) to get your annual BIK tax payable - £240 or £120. So monthly you would pay £10 or £20 BIK tax.

Are there any specific eligibility requirements?

Add here something around permanent contract (copy to be provided).

Do the tax benefits depend on my income?

add something around tax bands and NMW (copy to be provided)

Rental cost	299	col 3
insurance	129	col 3.2