Proposing the introduction of a salary sacrifice company car scheme has two significant stakeholders: the HR department and the employees themselves. With so many bonuses for both of these teams to benefit from, it shouldn’t be a pressing task to get them to sign up to the idea.
In creating a business plan that features a salary sacrifice company car offering, it’s important to distinguish your aims. Is it to create a flexible and appealing set of employee benefits that could help to attract and retain staff? Or is it to update and upgrade an existing fleet of vehicles that may not be as fuel-efficient as some of today’s most recent car makes and models?
Pitching the idea shouldn’t cause concern; a steadily increasing number of companies nationwide are switching over to salary sacrifice car schemes and moving away from the traditional company car scheme structure, which can exclude a significant proportion of a workforce, creating a sense of unbalance and hierarchy which can have a negative effect on team morale. With regard to the cost of offering this scheme to employees, it can be negligible if set up and structured efficiently.
Saving the environment
The move can also build upon a company’s green credentials, especially when opting for a variety of impressive fuel-efficient vehicles with low carbon emissions. Going for these low CO2 options also offers the employee the chance to take advantage of lower benefit-in-kind tax rates. Also, most schemes offer a comprehensive care package so the employees will stand to receive reassurance in the form of a brand new car with improved vehicle safety prospects.
Saving you time
In terms of the implementation of a salary sacrifice car scheme, a reliable partner can always offer the right kind of support wherever it is needed within your team. Your provider should be able to create a solution that provides your organisation with all of the information and tools needed to quickly and efficiently add this beneficial scheme into the payroll and IT system.
Benefits for Employer
- A salary sacrifice company car is tax efficient
- Offering employees the chance to drive a brand new car can be used to foster loyalty, boost motivation and encourage enthusiasm. It can also be used to leverage greater staff retention, keeping skills within the company
- Newer cars with lower emissions and better fuel efficiency offer CSR opportunities
- The scheme can be easily managed in conjunction with a professional partner
Benefits for Employee
- Use of a brand new car that may otherwise be out of reach
- A reduction in tax and NI contributions
- Easy budgeting via a fixed monthly cost, including all maintenance
- Package includes insurance, servicing and maintenance, keeping running costs manageable and easy to plan for
- No credit check is needed to take on a vehicle under a salary sacrifice company car scheme, making it ideal for those with poor or no credit history