For Employers and Employees Looking for Smarter, Greener Mobility
In today’s competitive job market, offering smart, cost-effective employee benefits can make a huge difference. One increasingly popular option is the Salary Sacrifice Car Scheme, and Cocoon Vehicles is leading the way with flexible, tax-efficient solutions that work for both businesses and staff.
Whether you’re an employer looking to enhance your benefits package at no cost, or an employee seeking a more affordable way to drive a brand-new vehicle, salary sacrifice could be the perfect solution.
Here are five compelling reasons to consider this scheme – from both perspectives.
Salary Sacrifice Schemes in the UK
1. Significant Savings for Employees – Up to 60%
One of the biggest advantages for employees is the potential for huge savings on a new car. By sacrificing a portion of their gross salary before tax and National Insurance contributions, employees can save between 30–60% on a vehicle lease compared to a personal contract.
And we’re not just talking about base costs – the scheme usually includes:
Maintenance
Servicing
Tyres
Road tax
Breakdown cover
Employees get a fully inclusive package and peace of mind with no hidden costs – all while driving a new, low-emission vehicle.
2. Zero Net Cost to Employers
For employers, the Cocoon Salary Sacrifice Scheme is a no-brainer. Why? Because it’s a net zero cost benefit.
Employers simply administer the scheme through payroll, and any savings from reduced National Insurance contributions can even offset admin costs or be reinvested elsewhere. Plus, it strengthens your employee benefits offering without needing to increase salaries or take on fleet management responsibilities.
You’re effectively offering a tax-efficient benefit that boosts morale and retention – all with minimal risk and no financial outlay.
3. Flexibility to Suit All Needs – Subscriptions or Contracts
Cocoon Vehicles is unique in that it offers flexible car subscriptions as well as traditional 2–4 year salary sacrifice contracts. This allows you to tailor the scheme to suit different employee needs.
Need something short-term or with more freedom? Choose a rolling monthly subscription.
Prefer a longer-term, fixed contract? Opt for a 2, 3 or 4-year lease with all the usual benefits.
This makes the scheme suitable for businesses of all sizes, including those with employees on fixed-term contracts, probationary periods, or hybrid work models.
4. Enhances Green Credentials and Supports Net Zero Goals
Most salary sacrifice schemes focus on ULEVs (Ultra Low Emission Vehicles) and EVs (Electric Vehicles), meaning you’re encouraging employees to choose eco-friendly, lower-emission cars.
Not only does this support the UK’s wider environmental targets, but it also contributes to your organisation’s sustainability goals. It’s a positive, progressive move that aligns with CSR (Corporate Social Responsibility) values and shows your commitment to a cleaner, greener future.
Plus, many employees are eager to switch to EVs but find the cost prohibitive. Salary sacrifice makes it more affordable to go electric.
5. Attractive Employee Benefit That Helps with Recruitment and Retention
In a competitive job market, it’s more important than ever to stand out as an employer. Offering a salary sacrifice car scheme adds real value to your benefits package and can:
Attract top talent
Improve employee satisfaction
Increase long-term retention
When employees feel supported with affordable and desirable benefits, they’re more likely to stay with your business, reducing recruitment costs and staff turnover.
It’s also a benefit that speaks to a broad audience – from recent graduates to senior execs – and can be scaled across the company.
Final Thoughts
The Cocoon Vehicles Salary Sacrifice Scheme offers a win-win for both employers and employees. With zero net cost to businesses and huge tax savings for staff, it’s a powerful benefit that enhances wellbeing, supports sustainability, and modernises your mobility strategy.
Whether you opt for a flexible car subscription or a 3- to 4-year lease, Cocoon provides a streamlined, hassle-free solution that’s easy to implement and manage.
Ready to drive smarter?
Visit salarysacrifice.cocoonvehicles.co.uk and find out how you can unlock the benefits of salary sacrifice for your business or career today.
