Salary sacrifice car scheme – can a small company sign up for an employee + MD?

[Heheardmeprayers]

Hi all,
I’m looking for some advice from anyone who has experience with salary‑sacrifice car leasing schemes (Tusker, Octopus EV, LoveElectric, etc.).

I have a small registered company since 2018 with PAYE set up. I want to know whether it’s possible — and sensible — to sign the company up to a salary‑sacrifice car scheme so that one employee can get a car, and the Managing Director can also get one through the same scheme.

I’m trying to understand:

• Whether small companies are accepted by these providers
• Any risks or pitfalls (e.g., early termination if an employee leaves)
• Whether the MD can take a car through salary sacrifice without issues
• What paperwork or policies companies needed to have in place
• Real‑life experiences — good or bad — from people who’ve done this

Any insights would be really appreciated. Thank you.

For an owner managed company I believe there are strong tax benefit for the company to own the car, especially electric cars, but presumably you have an accountant. They'd be the person to talk to.

Why don't you pick up the phone and have a chat with Octopus. We offered this scheme to our employees - we offered to be cost neutral, they would keep the savings - a couple of them investigated it but still thought it was too expensive - check wither it includes insurance and servicing.
We (directors) bought company cars, even though we aren't salaried we still pay the P11D taxes through payroll. It's been cheap for us, insurance was tricky - we got a cheap deal with Admiral.
I expect that you will have to keep the car for a period of time or pay the penalty - I would ensure the penalty is the employee's responsibility.

I'm not sure if the size of the business makes a difference but you can do that at my work, I don't do it but I've read all the policies and procedures. I don't think you need to reinvent the wheel, get the companies to answer your questions and choose the one that suits you best

Definitely speak to your accountant!