Myths About Salary Sacrifice Car Schemes – Debunked

Salary sacrifice car schemes have surged in popularity across the UK, especially with the rise of electric vehicles (EVs), the push for greener commuting and cheaper running costs. Despite this, misconceptions surrounding salary sacrifice still remain. Let’s clear the air and debunk the most common myths surrounding these schemes in 2025.

Myth 1: “It’s Just a Pay Cut in Disguise”

Reality: Salary sacrifice isn’t about losing money- it’s about restructuring your pay to gain tax-efficient benefits. By giving up a portion of your gross salary, you receive a non-cash benefit (like an EV lease), which reduces your taxable income. This means you pay less Income Tax and National Insurance, often saving 20-50% compared to personal leasing.

Myth 2: “You Can’t Use the Car for Personal Journeys”

Reality: You absolutely can. Salary sacrifice cars are treated as company cars for tax purposes, and personal use is not only allowed - it’s expected. Whether it’s the school run, weekend getaways, or daily commuting, your salary sacrifice vehicle is yours to enjoy within the agreed mileage limits.

Myth 3: “EVs Are Too Expensive”

Reality: While some EVs have high upfront costs, salary sacrifice schemes make them far more affordable. Thanks to low Benefit-in-Kind (BiK) tax rates (just 3% in 2025-26) and pre-tax payments, even premium models like the Tesla Model 3 can cost significantly less per month. Plus, EVs come with lower running costs, including cheaper charging and minimal maintenance.

Myth 4: “There’s No Charging Infrastructure”

Reality: The UK now has more EV charging points than petrol stations, making it easier than ever to charge your EV on the go.  Home charging is cheap and simple, and public charging is widely available when home charging isn’t an option, with apps like Zap-Map and Google Maps making finding a charger efficient. Many workplaces even offer free charging for their employees.

Myth 5: “EVs Don’t Have Enough Range”

Reality: Modern EVs offer impressive range. From the MG4 Standard Range’s 220 miles to the Tesla Model 3’s 340 miles, today’s electric cars easily cover the average UK commute (less than 10 miles each way). Range anxiety is quickly becoming a thing of the past, and EVs are as popular as ever.

Myth 6: “It’s Too Risky If I Leave My Job”

Reality: Our scheme offers complete employee protection, covering scenarios like redundancy, maternity leave, or long-term illness. The contract continues with all the services required included. However, if an employee simply resigns of their own will, the TCH Salsa scheme does include a termination charge for which the employee must take liability. 

Salary sacrifice car schemes are quickly becoming a necessary benefit in the workplace. They offer a win-win for employees and employers alike: lower costs, greener transport, and enhanced benefits. So if you’ve been hesitant because of outdated myths, now’s the time to reconsider your options when it comes to driving away with your dream car.

Ready to make the switch? Speak to TCH Salsa today.

Discover the power of salary sacrifice today