Salary Sacrifice
Salary sacrifice car leasing is a win-win for both employers and employees, providing tax benefits, affordability, convenience, and satisfaction. It is often the lowest cost way to access a fully funded, maintained and insured vehicle.
What is Salary Sacrifice
The Salary Sacrifice service at Vehicle Consultancy presents what is probably the cheapest way to access a new car, generally, employees can save between 30% and 40% compared to personal leasing.
Employees exchange part of their salary for a car, often environmentally friendly electric cars. This part of the salary is deducted before tax and National Insurance deductions, so very tax efficient. While the employer benefits from reduced Class 1 National Insurance contributions.
Typical benefits of salary sacrifice
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Tax Efficiency
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Affordability
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Convenience
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New Vehicles
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Employee Retention and Satisfaction
WHAT YOU NEED TO KNOW
Salary Sacrifice is growing at such rapid pace that it makes sense for those in finance, HR and fleet to find out what all the fuss is about. The rapid growth is due to the very low Benefit in Kind tax (BIK) on Electric Vehicles (EV), that has resulted in Salary Sacrifice becoming the cheapest method by far to source an EV.
We calculate the amount of salary that needs to be "sacrificed" in order to fund the vehicle by taking into account all of the above costs as well as any Class 1 National Insurance and employer retained savings. The employer then leases the vehicle which reduces the employee's salary accordingly.
THE PROCESS
The business joins the Scheme
Eligibility of employee confirmed
Employee chooses a car
Employer approval and car ordered
Car is delivered by Vehicle Consultancy
Payments are deducted from salary
HOW IT IS STRUCTURED
In exchange for a portion of their salary, the employee's Income Tax and National Insurance contributions reduce when they then choose a ULEV or EV that enjoys very low Benefit in Kind tax (BIK)
In simple terms it provides a contract hire vehicle to the company and this includes:
• Servicing & Maintenance
• Risk Protection
• Motor Insurance
• Fleet Management
• Accident Management
• Licence Checks
Here at Vehicle Consultancy we offer
Risk protection and minimal administration.
Thanks to the market-leading expertise and support of the Salary Sacrifice team, our scheme is very straightforward to implement and comes with industry leading risk protection; for instance if an employee leaves the company or goes on extended sick or maternity/paternity leave. Companies can implement the scheme with complete peace of mind, and without being overwhelmed with lots of administration.
Full Management Support
We provide the employer with full support including payroll reports, P11d reports, contract variations and full in-life management of the vehicle. We also provide a free workplace charger for every 5 vehicles delivered.
The employer only has to authorise orders with minimum wage checks, process payroll deductions and submit P11d reports. To reduce administration further, any in-life recharges such as parking fines are charged direct to the employee, rather than the employer.
FAQ
It is the cheapest way to source a brand new ULEV or EV for 2-4 years. Also this includes fixed cost motoring - road tax, insurance, breakdown cover, service and maintenance in the price. With No deposits or Credit checks required.
Full guidance, support and consultation during the implementation of the scheme. An enhancement to the overall remuneration package at no
extra cost. Encourages uptake of ULEVs and EVs to reduce carbon footprint.
For more information and an initial consultation please speak to our Senior Vehicle Consultant, Uel Butler
PHONE: +44 (0)28 9048 4818