An employee’s salary sacrifice arrangement begins on the day their car is delivered (as set out in their Salary Sacrifice Agreement).
To help you manage payroll, we provide details about each employee participating in the scheme in our monthly reports.
- The company starts paying the car provider the first month the car is delivered
- Employee's salary sacrifice starts the month after car delivery
- The cost of the charger installation is spread over the first 3 months
The company starts paying the car provider the first month the car is delivered
The company will be charged by the car provide the month the car is delivered. For example, if the car is delivered 21st February the company will be invoiced by the car provider directly for the month of February.
Employee's salary sacrifice starts the month after car delivery
In our experience, it is often difficult for an employee’s payroll arrangements to be updated in the same month of delivery (and in time for payroll!). As such, the first deduction from an employee’s salary is made the month after the car is delivered. So, if the car was delivered on the 21st February, the employee will have their first salary sacrifice deduction in March's payroll.
Similarly, the employee’s final salary sacrifice payment is made after the car has been returned, ensuring that the final salary sacrifice amount aligns with the final payments required for the car.
The cost of the charger installation is spread over the first 3 months
The cost of the charger installation is included in the salary sacrifice schedule over the first 3 months. This makes salary sacrifice in the first 3 months, higher than in the remaining months, for employees on a Flat Salary Sacrifice Schedule.