Salary sacrifice car leasing is a scheme in the UK where employees can give up a portion of their pre-tax salary in exchange for a leased vehicle, often at more favourable terms than if they were to lease independently.

Employees agree to sacrifice a portion of their gross salary before tax and National Insurance contributions to lease a car. The cost of the lease is deducted from their salary each month, resulting in potential tax and National Insurance savings.

Employees can enjoy tax savings, reduced National Insurance contributions, and the convenience of driving a new car without the need for a large upfront payment. Additionally, maintenance and insurance costs are often included in the lease.

Eligibility criteria can vary between employers, but typically, employees need to have a minimum level of earnings and may need to undergo a credit check. Employers may also have specific requirements regarding the type of roles eligible for the scheme.