Why as a Fleet Manager you should implement Salary Sacrifice?
(Posted on 13/02/24)
Salary sacrifice has surged in popularity in recent years, particularly within fleet management, offering an array of compelling benefits. Introducing such a scheme within a company proves advantageous for both employer and employee alike.
Salary sacrifice involves employees willingly forgoing a portion of their gross salary in exchange for a product or service provided by their employer. This strategic decision leads to a reduction in employees' overall gross salary, resulting in benefits such as reduced National Insurance and taxable liability, with only a benefit-in-kind tax to consider. Along with this, employers reap the rewards of reduced National Insurance contributions.
Critical to the success of such a scheme is a thorough evaluation of its suitability for the company or fleet. Factors such as staff turnover are important to consider as there could be potential early termination fees. Equally imperative is ensuring that the scheme complies with minimum wage regulations, safeguarding employees' financial well-being. You should definitely consider all this to ensure genuine cost savings in the long run.
For fleet managers aiming to reduce CO2 emissions, salary sacrifice presents an enticing incentive to transition to zero-emission vehicles or lower-emission alternatives. This dual benefit not only furnishes employees with the opportunity to drive more efficient vehicles but also empowers companies to fulfil their environmental responsibilities by reducing emissions.
Recognising the substantial cost savings and diminished carbon footprint that a salary sacrifice scheme can deliver to both businesses and fleets, it emerges as an invaluable employee incentive and a key tool for retention and recruitment when implemented effectively. The allure of acquiring a brand-new vehicle paired with significant cost savings proves attractive to many, particularly those keen on embracing eco-friendly transportation solutions at a reduced cost.
Moreover, the fixed monthly cost associated with salary sacrifice schemes typically included comprehensive insurance, roadside assistance, and maintenance, ensuring transparency, and enabling easy financial planning throughout the year. With a fully maintained and correctly insured vehicle, fleet managers can rest assured that both the vehicle and the employee are safeguarded.
Here at Fleetsauce, we offer our own EV salary sacrifice scheme “Electra” complete with dedicated customer support and early termination protection, providing peace of mind and unwavering support every step of the way. Providing tens of thousands of vehicles on fleet, from household name companies to smaller businesses, we believe everyone deserves equal levels of personal service.
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