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A win-win situation for employers and employees Salary sacrifice schemes offer a tax-efficient way to improve a fleet
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alary sacrifice is widely used as a tax efficient way to provide employee benefits including pensions, childcare vouchers and bike to work schemes. Since 2008 it has become a popular way for employers to provide a car-based benefit to employees. The schemes are increasingly becoming part of benefits packages due to their ability to assist with employee engagement and recruitment, at no cost to the employer. How does it work? A salary sacrifice car scheme enables employees to use a company car as part of their benefits package. They exchange a fixed reduction to their gross salary each month and get to drive a brand new car with an all-inclusive package. As the reduction is from the employee’s gross salary, they save on income tax and National Insurance. The cars are subject to benefit-in-kind tax (BIK), however for low emission cars the savings that are made will more than offset the tax payable. Benefits to employers n Helps recruit, attract, retain and motivate employees n Cost neutral or even cash generative for the company n Encourages uptake of low emission cars n Assists with duty of care compliance Benefits to employees n No deposit to pay and fixed monthly payments
Some of Zenith’s awards
Most popular cars ordered so far in 2014 through Zenith’s Salary Sacrifice Car Schemes 1 Audi A3 2 Ford Fiesta 3 Nissan Qashqai 4 MINI Hatch 5 Mercedes A-Class
n Income tax and National Insurance savings n Corporate discounts n All-inclusive package including maintenance, insurance, breakdown recovery, accident management, road tax, windscreen, glass and tyre replacements n Potential for fuel savings if the new car is more fuel efficient than the vehicle it replaces How do I implement a scheme? An experienced salary sacrifice provider will be able to work with you to implement a scheme and make the process as simple as possible, providing a dedicated project manager. A scheme typically takes around 8-12 weeks to implement. Key contacts will need to be available within your business to assist with the process including representatives from the HR, payroll, legal and communications departments.
For more information call Zenith on 0844 848 9311, email enquiries@zenith.co.uk or go to www.zenith.co.uk
Maximising the impact and value It is very important that the scheme and its benefits are communicated as fully as possible, to ensure success and full realisation of its value. Communication channels will vary according to the nature of your business but will typically include emails, intranet, posters, flyers and on-site events including roadshows and benefits fairs. Work with your provider to create a tailored marketing and communications plan to ensure your employees have access to all the information they need. Employee surveys and demographic information can help provide useful information to help market the scheme launch. Following go live, data can be analysed on quoting and ordering patterns to provide a full and accurate picture of vehicle trends and price points which will assist with ongoing communications.