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Posted Mon, 07 Mar 2022 12:53:58 GMT by Silvery Waves
We're looking at providing an employee with an Electric Vehicle under a salary sacrifice agreement. However, the lease we're looking at involves an upfront payment of £1,000, followed by 35 monthly payments of £333. Can the agreement be worded to reduce the employee's gross salary by £1,000 in month 1 and £333 in subsequent months, or does it have to be equal installments over the 36 months - presumably (£1,000 + 35 x £333)/36 = £351.53 per month?
Posted Mon, 07 Mar 2022 14:50:31 GMT by HMRC Admin 17

Hi,
 
There are no rules to say that a salary sacrifice should be the same amount each month.

When an employer enters into a salary sacrifice scheme this is a contractual change to the employees pay.

Employers must ensure when they deduct a salary sacrifice amount that the remainder of the salary is above the national minimum wage.

Thank you.

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