09:51, Sat, Nov 25, 2023 | UPDATED: 09:51, Sat, Nov 25, 2023
Drivers could miss out on savings due to a new law change (Image: Getty)
New law changes set to come into effect in April may see dozens of drivers miss out on massive car tax benefits, according to experts.
The Chancellor announced an increase to the national living wage from next year in his Autumn Statement with the fees rising to 11.44.
However, specialists have warned the rise may mean some lower-earning employees no longer qualify for salary sacrifice schemes.
These business-run projects enable drivers to lease vehicles and pay for them with pre-tax income. It means drivers who take advantage of the scheme will pay slightly less income tax than other employers.
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The system has allowed many businessmen to get their hands on expensive electric cars for less in a boost to EV adoption.
Salary sacrifice schemes have helped motorists get their hands on expensive electric cars (Image: Getty)
But, employers can only offer salary sacrifice schemes to employers as long as it doesn’t reduce their salary below the minimum wage.
It means those sitting just above the 11.44 per hour pay bracket may now be ineligible as taking on a vehicle could drop them below this line.
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