The short answer is no.
According to HMRC, a true salary sacrifice must be a contractual change to the employees rate of pay. They do request that the change in salary is "permanent", meaning that any change must be for a minimum 12 month period.
The schedule of salary sacrifice is based on the agreement made with:
- The employee and the company (the Employee Contract Amendment Agreement)
- The company and the vehicle provider (via the Master Hire Agreement)
What changes can be made to the Master Hire Agreement?
The cost of the lease
Once the agreement has been signed the cost of the lease cannot be changed. If you wanted to change this before the car is delivered, a new order will have to be placed and cancellation fees will incur.
The only exception to this is if you wanted to increase your mileage allowance.
Increasing mileage allowance
You are able to increase your mileage allowance. How many times you can change it depends on if you have a lease or subscription car and the car provider, but it is usually up to two times during the lease term. You'll need to contact them provider directly.
If you make any changes to your mileage, please let The Electric Car Scheme know, so that we can amend payroll instructions to your company and ensure that you a salary sacrificing the right amount. Our email address is support@electriccarscheme.com.
What changes can be made to the Employee Contract Amendment Agreement?
If more than 12 months has surpassed, the company can adjust the schedule of salary sacrifice with the employee, however, that is completely to the discretion of the company. If it has been less than 12 months, you may be able to change the salary sacrifice schedule, however, the amount would need to be higher than what was previously agreed- this is a HMRC requirement.
If any changes were to be made, the company and employee would have to sign a new Employee Contract Amendment Agreement with the new salary sacrifice figures.