Salary Sacrifice explained

Salary Sacrifice is classed as a “Benefit in Kind” from a tax point of view. You may need to include in possible Tax return.

Incidently it is a benefit to the employer as they pay less National insurance as do you

Salary sacrifice for a car is a pre-tax deduction from your salary, reducing your taxable income, and often includes insurance and maintenance. Buying a car ordinarily means using your post-tax income to purchase a vehicle, where you are responsible for all associated costs like insurance, servicing, and repairs.

 Disadvantages of salary sacrifice

Salary sacrifice reduces your gross income, which can lower your eligibility for loans, mortgages, and certain state benefits like statutory maternity pay and the state pension. Your pension contributions might also decrease if they are based on your pre-tax salary. Additionally, these arrangements are often inflexible, and you may lose the benefit if you leave your job.