Looking to Implement a New, FREE Scheme for Your Employees?
We’ll talk you through one of our most popular schemes, salary sacrifice..
How Does a Salary Sacrifice Arrangement Work?
It works similarly to other salary sacrifice arrangements that have been whitelisted by HMRC, such as a cycle to work scheme or a pension scheme. An employee will ‘give up’ or exchange part of their salary for a new car, with everything included but the charge.
This can save an employee up to 45% on motoring costs when compared to retail! Of course, the lower the CO2 of the car, the bigger the saving as the company car tax will be lower. Savings on income tax and national insurance contributions savings are one of the major benefits of opting for a salary sacrifice arrangement.
We have a three-way agreement between Fleet Evolution, yourself and the employee. You deduct the car payment from your employee’s salary every month and then use that deduction to pay us. Any other costs (fines etc.) will usually go to the employee directly.
We don’t ask the employee for a deposit for the car, and we don’t run a credit check on them individually. All they need to worry about is the fuel!
For more information on salary sacrifice such as what benefits can be claimed by salary sacrifice, how its calculated, and how to setup up a salary sacrifice scheme, why not read through our helpful blog post covering everything on salary sacrifice.
Alternatively, check out our Employers Guide to Salary Sacrifice Cars.