Many employees are initially hesitant about taking up salary sacrifice schemes, namely because they contain the term ‘salary sacrifice’ (who wants to be paid less?). However, the benefits of taking up the offer of a salary sacrifice schemes are beneficial to the employee, the employer and even the environment. Encouraging employees to take up a scheme is often simply a case of educating them of the benefits they could reap by doing so, upon which you’ll find that many are agreeable to the idea once they know what it entails. Make sure your employees know about the following benefits and chances are they’ll certainly consider the idea.
With a company car, all employees need to pay for is fuel. All of the other unexpected charges that come with driving a car, including having to pay for punctures to be repaired, windscreen wiper replacements or windscreen cracks, which are all covered by the scheme. This gives your employees a whole lot less to worry about, and we all know that a stress-free worker is a more productive one, creating a win-win outcome for both you and you and your workforce. The only thing your employees will have to manage is the fuel.
Another huge benefit of opting for a salary sacrifice scheme is the fact that employees save money on all the things mentioned above, as well as not having to worry about fixing them. Employees who opt in, albeit on a reduced salary, will make further savings on tax and national insurance due to having a reduced wage. What’s more, employees will be taxed their gross salary for the benefit of having a car rather than their net, so they won’t be losing as much from their actual take-home pay as they probably thought, along with the added bonus of not having to pay often pricey car insurance.
Many fleets offer a host of low emitting cars to choose from. The Co2 footprint of the average customer’s workforce can be lowered by as much as 35% when choosing low-emitting cars, which we can all agree is worth doing for the health of our planet. This will appeal to some of your more environmentally concerned employees more than others, so it’s worth pointing out that and eco-friendly car will also bring with it less fuel payments too!