Forward-thinking companies who have been pushing through the economic downturn, are reaping the benefits of salary sacrifice, according to a fleet management specialist in the Midlands.
Salary sacrifice has been increasingly popular in recent years, offering employees non-cash benefits for a contractual reduction in pay. Advantages on offer to employees are becoming increasing important, says Managing Director of Fleet Evolution, Andrew Leech.
“Most companies tend to offer pension arrangements, but these are flexible. A salary sacrifice car attracts and commits the best level of candidate for your company.
“Most salary sacrifice car scheme specialists, offer an employer some peace-of-mind by taking control of the maintenance of a vehicle, leaving an employee more focused on the core business, rather than MOTs and services.”
Companies have been using the beneficial scheme to slash CO2 emissions and meet environmental targets. Those companies, who take advantage of the salary sacrifice opportunity, have seen their emissions drop, which is down to the economical technology behind new cars.
“On average, we are supplying vehicles that are emitting a third less CO2 than the vehicles which they are replacing. In fact, 87 per cent of the firm’s orders are for vehicles that emit less than 120 grams of CO2 per kilometre,”Mr Leech said.
Essentially, the car is treated as a taxable benefit, so the lower its CO2 rating, the greater the saving.
The scheme also creates significant savings in corporation tax and National Insurance.