company car

The modernisation of perks

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The working world is changing. Employers and employees alike are looking for more flexibility and freedom, and one option that we are increasingly being asked about is salary sacrifice. A salary sacrifice for car scheme gives you the chance to lease a brand-new, low emission car, with the cost taken from your monthly pay.

It’s ideal for employees

If your company offers you a new car through salary sacrifice, it comes with some significant perks:

  • If you choose an ultra-low emission vehicle, there are significant tax savings to be made.
  • Corporate buying power and manufacturer discounts mean you can afford a better car than you’d be able to buy or lease privately.
  • You can choose a brand-new car from an approved provider list every two to three years.
  • At the end of the lease, you can exchange your car for a new one, buy it, or simply hand it back.
  • You don’t need to worry about insurance, servicing, breakdown cover, glass and tyres, or accident management (these are all taken care of by your provider).

It makes sense for employers

If you’re a fleet, HR or operational manager, introducing a salary sacrifice car scheme could bring numerous benefits for your company:

  • There are fewer risks from your ‘grey fleet’: the cars owned by your employees rather than your company.
  • You can potentially offset the agreement against salary increments.
  • It can help with staff recruitment and improve retention.
  • With SalaryPlan – LeasePlan’s own salary sacrifice scheme – all the running costs (except fuel) are included.

It can be better for the environment

Using a salary sacrifice scheme can help keep your staff to switch to more fuel-efficient and environmentally-friendly cars with a real incentive for ultra low emission vehicles (ULEVs) as they’ll benefit from new tax rates which come into effect in 2020/21. Not only are these vehicles cheaper to run, they also reduce an employee’s carbon footprint and help improve urban air quality.

It’s part of a better workplace

The regulatory environment – not merely that surrounding the tax regime for benefits, but also issues from the minimum wage to legislation on the gender pay gap and pensions – makes it more vital than ever that employers offer reward schemes that are flexible, fair and affordable.

Salary sacrifice cars are a key part of such reward schemes. And they are likely to become more and more important to employers’ efforts to attract and retain the most talented staff, particularly at a time when unemployment is low and recruitment of the brightest and best is becoming increasingly competitive.

Get in touch

If you’d like to know more, please get in touch with our expert team 01753 802448 or email newbusiness@leaseplan.co.uk 

 

 

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