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Posted Sun, 23 May 2021 21:03:57 GMT by Cormac Cleary
Does a salary sacrifice car scheme have to be leased, or can it be purchased on a hire purchase basis with the employee owning the car when the final payment has been made? Also, does it only apply to new cars, or can used cars also be purchased through salary sacrifice? For example, could a two year old electric car be purchased through salary sacrifice on a hire purchase basis, with the employer making the payments from the employees salary, with the emoyee being liable for the BIK for the duration of the hire purchase contract. Then when the final payment has been made would the car be fully owned by the employee, who would no longer be liable for BIK?
Posted Fri, 28 May 2021 11:40:18 GMT by HMRC Admin 19
Hi,

The conditions of a salary sacrifice scheme would need to be discussed with your employer or the employers helpline.

General information however on this can be found here.
EIM42750
EIM23000

Thank you.
Posted Thu, 07 Apr 2022 08:15:29 GMT by AccountantPartTime
I also have been considering the exact same scenario as Cormac. It would be appreciated if HMRC could give a direct answer to the question, if it is permissible or not.
Posted Mon, 11 Apr 2022 12:02:06 GMT by HMRC Admin 10
Hi  AccountantPartTime  

Please note that HMRC will not comment on a proposed salary sacrifice arrangement before it has been put in place.

Please ask your employer if the specific car-related salary sacrice options you have in mind are available to employees of your company.

Thankyou.

Regards.

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