Benefits of Salary Sacrifice Car Schemes

Explained: The Benefits of Salary Sacrifice Car Schemes for Individuals We help you decide whether a salary sacrifice car is right for you   Q. My company has introduced a salary sacrifice car scheme for employees but I’m unsure how it works. Can you help? A. Salary sacrifice car schemes have been one of the success stories of recent times, and increasing numbers of companies throughout the UK now offer their employees the benefit of a brand new car in return for surrendering a set amount from their salary every month. One of the main reasons behind introducing a salary sacrifice car scheme is that it extends the number and [...]

By |October 10th, 2017|Categories: Salary Sacrifice|0 Comments

HMRC Updates its Guidance for Salary Sacrifice Schemes

HMRC Updates its Guidance for Salary Sacrifice Schemes Her Majesty’s Revenue & Customs (HMRC) has updated its guidance on the government website regarding the introduction of salary sacrifice schemes, following the changes which came into effect in April this year. The government announced in last November’s Autumn Statement that it was changing the rules covering salary sacrifice schemes, which have become increasingly popular in recent years. Why were there changes to salary sacrifice schemes? Salary sacrifice schemes had led to some employees paying less tax than their colleagues, which was not fair, said the government in the Autumn Statement. As a result, those opting to take benefits through new salary [...]

WESC Foundation Launches Lifestyle Lease

WESC Foundation choses Maxxia’s Enhanced Lifestyle Lease Employee Benefit Car Scheme The WESC Foundation has selected Maxxia’s Lifestyle Lease car scheme to broaden the number of employee benefits available to its staff The Foundation employs more than 200 people and provides a range of services for visually impaired adults and young people, including: education, outreach services, adult day services, work experience at a range of social enterprise initiatives, and lots more. Lifestyle Lease offers an innovative and unique solution for companies looking to provide their employees with an employee benefit car scheme, as the lease agreement is with the employee, not the employer. If a staff member leaves to work [...]

Press release | Employee car schemes

Employee car schemes at a crossroads, says new survey Some 70% of respondents would opt out if tax levels rise still further Tax and cost more important than the environment 78% less likely to choose a low emission vehicle if incentives removed   While employees still view employer-provided car schemes as a benefit, growing numbers would consider opting out of such schemes if car tax increases still further. At the same time, tax and cost implications of selecting a new car outweigh any environmental considerations. And 78% of respondents said they would be less likely to choose a low emission vehicle if the tax incentives were removed. These are some [...]

Autumn Statement 2016 | Salary Sacrifice Update

Autumn Statement reduces tax benefits of salary sacrifice schemes But ultra low emission cars are exempt from new proposals One of the most far-reaching changes of the Autumn Statement - Chancellor Philip Hammond’s first and last - was to salary sacrifice schemes, which have grown dramatically throughout both public and private sectors in recent years. The Chancellor announced that his first Autumn Statement would be his last, but that he wasn’t resigning. Rather he was switching to an Autumn Budget Statement from next year, with much more low-key announcement in the spring in response to the Office of Budget Responsibility. What are the changes to salary sacrifice schemes? The Chancellor [...]

By |November 23rd, 2016|Categories: Salary Sacrifice|0 Comments

Taxman begins consultation into salary sacrifice car schemes

Salary sacrifice is one of three areas under review by HMRC The Government has announced that it has fulfilled a promise made at this year’s Budget to initiate consultations into salary sacrifice schemes, including those that cover cars. This is one of three areas affecting company cars that the Government currently has under scrutiny. The other two areas under review are changes in lease accounting and the balance sheet treatment of assets including company cars, and the tax treatment of ultra-low emission vehicles (ULEVs). Why is the Government doing this? At this year’s Budget Statement in March, the Government said that it would look at the range of Benefits-in-Kind (BIK) [...]

A new direction for employee car schemes

Employee Car Schemes - Creating a Win-Win Recent research has identified that the majority of HR directors and managers struggle with the best approach to take when it comes to adopting a car salary sacrifice scheme. What about the risks involved? Will it really affect employee retention? Or even benefit the business? These are just some of the concerns HR managers have. For HR professionals, providing employees with benefits and incentives is a high priority, and car lease schemes have remained one of the most appealing company benefits for both existing employees and new prospects. However, recent research has revealed that as many as a third of HR professionals find salary sacrifice car [...]

Could salary sacrifice cars help those caught in 60% tax trap?

Personal allowance taper catches growing numbers of high earning taxpayers A growing band of high earners are paying 60% tax on a portion of their income, thanks to a policy brought in by the last Labour government and confirmed by subsequent regimes. Those earning between £100,000 and £120,000 per annum are now effectively paying 60% tax on that portion of their income between the two limits. Above the upper limit, the tax rate reverts to 40%, only to rise again to 45% for those with incomes over £150,000. This is due to a policy first introduced at the end of Gordon Brown's government whereby anyone earning over £100,000 per annum [...]

National Living Wage and the impact of salary sacrifice schemes

National Living Wage comes into force from April and will benefit 1m employees Firms need to check their salary sacrifice schemes take into account new limits Next month, workers in the UK aged 25 and earning the minimum rate of £6.70 per hour will see a 50p increase to £7.20 under the new National Living Wage, introduced for all firms in support of the Government’s vision of a higher wage, lower welfare, lower tax society. The new National Living Wage, which takes effect from April 1st and was announced by the Chancellor at the Summer Budget, will affect over a million workers in the UK who are set to directly [...]