Arval BNP Paribas Group - Full Service Vehicle Leasing
For the many journeys in life

TAX EFFICIENT MOTORING

Salary sacrifice is an employer provided scheme where you can agree to give up part of your cash pay or salary in exchange for services or goods. With Arval Ignition, in exchange for part of your salary, your employer will agree to provide you with an insured company vehicle that is also serviced and maintained.
So with potential savings of up to 50%*, Arval Ignition is one of the simplest and most affordable ways for you to drive a brand new car.
*Based on income tax and National Insurance savings and compared to an equivalent Personal Contract Hire agreement for the same mileage and contract length. Other fuel types also available.

BENEFITS OF SALARY SACRIFICE

Tax and NI savings

The salary sacrificed is taken pre-tax which means you can benefit from tax and NI savings. You will pay income tax on the Benefit in Kind (BiK) which will vary depending on your tax bracket and vehicle chosen.

No deposits

No deposit, up front payment or credit check required as the cost is taken directly from your salary.

Simple and Efficient

Get a brand new insured company vehicle - with services such as maintenance, tyres and accident management all included - for one simple, cost-effective, monthly salary reduction.

How does it work?

Your gross pay will be reduced by the sacrifice shown on the quote, therefore reducing your Tax and National Insurance costs.
This salary deduction covers the finance and insurance of the vehicle, service and maintenance, tyres, Vehicle Excise Duty (VED), breakdown recovery, accident management and 24/7 driver support - almost everything, except fuel or electricity!

Tax year 2022/23 ?
Gross salary sacrifice ?
Income tax & NI saving ?
Car benefit in kind ?
Actual cost to you ?
20%
40%
£444.61
£444.61
-£142.27
-£208.96
£4.74
£10.66
£307.08
£246.31

*Price shown based on an electric compact car, 36 monthly payments and a maximum mileage of 30000 miles. Includes Arval Total Care and for delivery to mainland Great Britain.

Want to order a new vehicle now?

See our Great Offers or head to the My Arval portal and find the right vehicle for you!

FREQUENTLY ASKED QUESTIONS

What is salary sacrifice?
This is an employer provided scheme where you can agree to give up part of your cash pay or salary in exchange for services or goods.
These are well established with “Bike to Work” and pension schemes. The difference with this is that in exchange for part of your salary, your employer will agree to provide you with an insured company vehicle that is also maintained and on which road tax is paid.

You will no longer pay tax or National Insurance (NI) on the salary that you sacrifice. You will however pay tax on the company car that you receive in return, but depending on the car that you choose, you can minimise this cost. You will not pay any NI costs on the car.

This salary sacrifice product is provided as part of your flexible benefits scheme.
Is salary sacrifice right for me?
In order to benefit from the tax savings, HMRC requires that the salary sacrifice is a change to your terms and conditions, reducing your contractual salary, rather than something employees can simply opt in and out of. For this reason, employees are required to enter the Scheme on a longer term basis. Entering into any long-term financial commitment should be considered thoroughly. Procuring a new car via salary sacrifice is no different.

You should satisfy yourself that a company car will meet your lifestyle needs throughout the duration of the contract and that you understand the associated obligations.

CONTACT US