To those unfamiliar with the schemes, the idea of salary sacrifice cars can sound a little unappealing. The word ‘sacrifice’ comes with some fairly negative connotations and can make it seem as though those participating in the schemes are losing out in some way. But in fact, salary sacrifice schemes are a win-win situation for both employers and employees – here’s why:
You’ll both pay less tax
The idea of a salary sacrifice scheme is that some of your wages are sacrificed for a non-cash benefit – in this case, a car. The money that is put towards the car each month no longer counts towards your total salary (even though you’re benefitting from it), which means you end up paying less tax and National Insurance.
The same goes for your employer – they’ll pay less Employers’ National Insurance contributions, leaving them better off too. Some employers will even pass on these savings to their employees to really sweeten the deal.
Employees will feel valued, employers retain the top talent
It’s important for employees to feel valued and appreciated in this day and age – and what better way for businesses to show their appreciation than by connecting their workers with a scheme that gets them a new car as part of the deal? Cars are regularly named one of the top employee benefits out there.
Employers will benefit from this too – they’ll be able to retain the top talent in their business rather than losing them to a rival or competitor. If an employee feels valued, they are more likely to be loyal to their job.
Fully managed vehicle with no admin burden for businesses
The cars available on salary sacrifice schemes are what’s known as ‘fully managed’ vehicles. This means car tax, insurance, repairs and servicing is all taken care of – all the employee needs to do is top up the fuel tank.
For businesses, this is also an added benefit. The admin burden with Fleet Evolution’s salary sacrifice car schemes is famously low, which means that employers will need to do nothing more than sign some forms each month to keep the scheme ticking over properly. The schemes are low-maintenance for all involved – a real win-win.
Access to better vehicles
Salary sacrifice car scheme providers have often developed strong links with fleet providers, and they have more buying power than an individual employer. This means employees have access to better cars at lower prices, purely down to the bulk discounts which can be negotiated by the supplier. The good news is, this requires no extra action or work on the part of the employer.
