News
Plan to save UK fleets millions by using Salary Sacrifice
Plan will launch its Salary-Plan in 2010.
Salary sacrifice schemes make company cars available to employees who do not qualify for them in exchange for a monthly payment from their salary 'before' tax.
We see this as an opportunity to replace the grey fleet with new, cleaner, safer cars.
An increasing number of businesses are bolstering employees’ benefits packages by giving thousands of staff access to a company car for the first time. Traditionally, salary sacrifice schemes included the likes of childcare vouchers, gym membership and subsidised bikes. Now companies are starting to allow employees to relinquish part of their gross salary in return for a car. Employees gain through savings in income tax and National Insurance Contributions (NIC), while the employer benefits from NIC savings.
According to experts, companies don’t need a high take up by employees to make the scheme work.
The growth in the flexible benefits culture - allowing employees to create their own reward package - has seen more organisations seeking to expand the range of benefits offered. Cars - by anyone's reckoning is an attractive benefit - have been one of those additional benefits considered.
These schemes are attractive, because all day-to-day operations are outsourced to Plan. This outsourcing removes many of the concerns fleet managers have about these schemes adding to their workload.
Few if any companies wish to manage these schemes themselves, the point of introducing them is to increase choice, not the administrative burden.
