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Sample Salary Sacrifice Agreement

A worked salary sacrifice agreement for an electric vehicle lease covering irrevocable reduction, tax, payroll, risk, absence and termination.

Jurisdiction: England and Wales - worked fictional example

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Important: This sample provides general legal information only and is not legal advice. Check the law, prescribed forms and signing requirements that apply to your exact jurisdiction and circumstances before use.

# EXAMPLE: SALARY SACRIFICE AGREEMENT

Date: 1 March 2028

Parties: Northmere Foods Limited and Sofia Bennett

## 1. Parties and consideration

Northmere Foods Limited and Sofia Bennett agree that Sofia's gross salary of £52,000 a year will reduce by £610 per month from 1 April 2028 in exchange for the employer-provided electric vehicle described in Schedule 1.

## 2. Subject matter

The parties intend a genuine prospective variation before the reduced pay is earned. The arrangement is not a loan or a cash allowance, and Sofia confirms she has considered the effect on take-home pay, statutory pay and pensionable salary.

## 3. Operating terms

Northmere will lease a blue Nissan Ariya, pay the agreed lease and routine servicing, and report the taxable benefit through payroll. Sofia must provide a valid licence, use the vehicle lawfully and complete the mileage declaration each month.

## 4. Document mechanics

Insurance permits Sofia and her spouse Daniel to drive for business and private use. Sofia pays fines, charging at home, excess arising from negligent damage and any tax due personally; the company pays business mileage at its approved rate.

## 5. Party obligations

Sofia may not sell, sublet, modify or take the vehicle outside the UK for more than 30 days. She must report a collision within 24 hours, follow the manufacturer schedule and return keys, charging cable and vehicle when requested.

## 6. Termination and survival

The reduction continues during paid leave but is reviewed if salary falls below National Minimum Wage, statutory pay is calculated differently or the lease supplier changes terms. Northmere will consult before a necessary lawful adjustment.

## 7. Signatures

The arrangement ends on termination, after a written mutual variation or if the vehicle is written off. Final payroll will account for accrued salary and lawful deductions; confidentiality, tax records and return obligations survive. Signed by both parties: ____________________.

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