What Is A Car Salary Sacrifice Scheme?

Salary sacrifice schemes prevail in multiple companies; employers use them as a terrific encouragement to captivate and preserve employees. Most of the time, these schemes comprise trading a portion of pre-taxed annual salary in return for goods or services. It is not unusual for employers to offer healthcare, gym memberships, increased pension contributions and many more on a salary sacrifice basis. The most popular sacrifice scheme is a car salary sacrifice.

Although, it has undergone significant changes in recent years. For instance, the employee will now be required to pay income tax on either the value of the car or the total amount of salary sacrificed. Take a look at our “How Salary Sacrifice Works” page here to learn more. However, there are still many benefits to this scheme, and here they are:

Superior vehicles at a reduced price

Typically, companies like ourselves will amass vehicles for a lower price than normally available to a consumer. Therefore, by leasing a car from your employer, you will be saving a large amount of money compared to buying from a dealership. All the cars we offer here at Fleet Evolution are brand new EV cars. Great for the environment and you!

No deposit required

Unfortunately, buying a new car requires putting down a large deposit; this can be undoubtedly time-consuming to save. Luckily, company salary sacrifice cars generally do not require you to put down a deposit on your new vehicle, therefore, saving time and money. 

All-inclusive car packages

For the most part, car salary sacrifice includes all the extra essentials that come along with car ownership. Most of the benefits that come with a company car also come with a car salary sacrifice scheme. For example, car tax, insurance, breakdown cover, servicing and maintenance are all usually included. In essence, it will save you a lot of stress as ensuring your vehicle remains roadworthy is essential. The organisation and efforts needed are taken away from you and are dealt with by your employer. 

Fairness among employees 

Car salary sacrifice schemes allow reduction of hierarchical problems due to offering broad car ownership throughout a company. Salary sacrifice cars schemes make new company cars readily available to all employees throughout a business.

Remaining tax advantages of ULEVs

Since the rules changed in 2017, tax benefits have considerably decreased. However, there are still ways to avoid paying tax on salary sacrificed cars or the exchanged salary through environmentally friendly cars such as the ones we offer here at Fleet Evolution.

Salary sacrifice car schemes are great when it comes to saving employees money. Also, having your employer handle car ownership strategy releases an enormous burden when running your vehicle. Moreover, encouraging the use of electric and hybrid cars can reduce costs further for the employee.

Get in touch!

[]
1 Step 1
Contact Us

Have some further questions for us? Get in touch below - we'll get back to you as soon as possible!

Want to be added to email marketing?
keyboard_arrow_leftPrevious
Nextkeyboard_arrow_right

Tags : , , , , , , , , , , , ,