What is Salary Sacrifice Car Scheme?

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Ray Dart Profile
Ray Dart answered

In the UK, "salary sacrifice" purchases allow your employer to buy something on your behalf and in return, they pay you less. This has tax advantages for some purchases (but not, I think for cars).

The "Cycle to work" initiative here in the UK allows employees to buy a bicycle on a salary sacrifice scheme, and thus save the tax on that portion of the salary that they forego.

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Walt O'Reagun
Walt O'Reagun commented
Interesting.
In the US, the government would still view the value of that item as taxable income.
Ray Dart
Ray Dart commented
I think that cycling to work was considered as a good use of tax relief, people get fitter and make smaller calls on the National Health Service.
Walt O'Reagun
Walt O'Reagun commented
Our government cares more about revenue than health. Otherwise, they'd end the tobacco subsidies and outlaw smoking entirely - rather than messing around with telling people where they are allowed to smoke, while bringing in tax revenue on tobacco products. LOL

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