Salary Sacrifice- how much admin is there really?

Updated: Jul 30, 2020

Many businesses worry about implementing a salary sacrifice scheme due to the burden on their payroll team- but what if we took this away?

With the Go Green Car Scheme (GGCS), we make it as simple as possible. HMRC have already approved the scheme which simplifies the process on both ends of reporting.

What do Payroll need to do?

  • Ensure that the driver deductions from salaries are correct at the end of each month

  • Pay invoices relating to driver deductions

What are the drawbacks?

  • If an employee leaves with no notice that month’s payment will still have to be made by the employer

  • If you do not have leaver protection built into the scheme then you will be liable for the rest of the lease payments if an employee leaves. With our GGCS we include full leaver protection so that if an employee leaves the car can be returned at no cost to the company.

  • There’s a 24 month minimum length for any Salary Sacrifice lease contract.

  • All employees who are paid monthly will be eligible just as long as the lease payments do not drop their salary below minimum wage.

  • If an employee in the Go Green Car Scheme goes on maternity leave their payments must still be made by the employer, however with the GGCS we cover these invoices up to 12 months once an employee drops to statutory pay.

  • P11d tax reporting is of course still necessary

You can find out more about how the Go Green Car Scheme here or book a call with our team here

2nd Floor, UK House, 164-182 Oxford Street, London W1D 1NN

  • Instagram
  • White LinkedIn Icon
  • White Facebook Icon
  • White Twitter Icon

Any prices quoted are subject to changes in law, regulation, tax or duty beyond our reasonable control.

Octopus Electric Vehicles Limited is authorised and regulated by the Financial Conduct Authority, firm reference number 809736, company number 10754317. Our registered address is 33 Holborn, London EC1N 2HT. Octopus is a credit broker and a vehicle hirer but not a consumer credit lender. Octopus may introduce You to a panel of third-party lenders or hirers and in such circumstances may receive a commission.