Salary Sacrifice
Salary Sacrifice: Electric & Plug-in Hybrid Cars as a Staff Benefit
Salary sacrifice is a scheme where an employee gives up part of their gross salary in exchange for a car, saving on Income Tax and National Insurance in the process – it works best with electric and plug-in hybrid vehicles. Of our five partners, Cocoon Vehicles runs a dedicated salary sacrifice scheme (in partnership with Ezoo) via its own site at salarysacrifice.cocoonvehicles.co.uk. What makes it unusually flexible for the salary sacrifice market is that plug-in hybrid and electric vehicles are available on 2, 3 and 4 year contracts as well as flexible and short-term contracts – most salary sacrifice schemes only offer one fixed multi-year term.
Employers wanting a cost-neutral staff benefit that supports Net Zero goals, and employees (aged 25-75 for the subscription route, 21+ for leasing) who want to save tax and National Insurance on an electric or plug-in hybrid car.
Why choose salary sacrifice?
Save 30-60%
Employees can typically save between 30% and 60% of the cost of a premium electric vehicle versus buying or leasing it personally.
Flexible AND fixed-term available
Unusually for salary sacrifice, Cocoon Vehicles offers flexible and short-term contracts alongside traditional 2/3/4 year terms.
Free & cost-neutral for employers
Free to set up, and structured to be cost-neutral for the business while still being HMRC compliant.
Fully inclusive package
Insurance, maintenance, breakdown assistance, road tax and more are included as part of the scheme package.
How it works
- Tell us what you need. Use the Vehicle Finder tool below or browse partner options directly.
- Compare partner options. See which of our partners cover your requirements and preferred term.
- Go to the partner to book. Every agreement is arranged and fulfilled directly with the partner company.
- Drive away. Insurance, servicing and maintenance are handled per the partner's own terms.
Ready to enquire about salary sacrifice?
This service falls outside what our Vehicle Finder tool is built to filter for. Get in touch directly, or use the Vehicle Finder if a one-month-plus subscription or short-term lease would also work for you.
Who provides salary sacrifice in our network?
Of our five partners, Cocoon Vehicles Ltd is the one with a dedicated salary sacrifice service. Flexigo Cars, Drive Car Flex, Londons Short-Term Cars and Short-Term-Leasing Ltd are not presented here as salary sacrifice providers.
Cocoon Vehicles Ltd
Flexible car and van subscriptions with a live showroom of ready-to-drive vehicles. Cocoon Vehicles also powers the Vehicle Finder tool on this site.
Est. 2007 · First Floor Suite 1.01a, 62 King Street, Belper, Derbyshire, DE56 1PZ · 01332 290173
Visit salarysacrifice.cocoonvehicles.co.uk →See our full Cocoon Vehicles partner profile for services, contact details and more.
FAQs: Salary Sacrifice
Who offers salary sacrifice in your partner network?
Cocoon Vehicles is the partner in our network with a dedicated salary sacrifice scheme, run via its own site at salarysacrifice.cocoonvehicles.co.uk in partnership with Ezoo.
Who is eligible for salary sacrifice?
For a salary sacrifice car subscription you generally need to be aged 25-75; for salary sacrifice leasing you need to be 21 or over. You'll also need to be a UK resident with a valid UK or EU licence and no motoring offences in the last 3 years, and have been employed for at least 6 months.
Does salary sacrifice affect my mortgage or credit applications?
It can – because your gross salary is reduced on paper, some mortgage or credit applications may be affected. Your salary after the sacrifice must still remain above minimum wage.
Will I need a credit check?
No personal credit check is typically required, since the scheme is arranged through your employer rather than as a personal credit agreement.
Can I take a hybrid car on salary sacrifice, not just electric?
Yes, plug-in hybrids are available on salary sacrifice, though the tax savings are usually smaller than for a fully electric vehicle.
What happens if I leave my job while on a salary sacrifice scheme?
You may be required to return the vehicle or pay early termination charges, depending on the scheme – some options offer protection against this. Check your employer's specific policy.