Employees receive a company car that is leased by the employer for 2 to 3 years. They pay for this by sacrificing part of their gross salary every month, which leads to savings in income tax and national insurance. It also means that they are subject to Benefit in Kind (BIK) tax.
When it comes to zero or low-emission cars, Salary Sacrifice can result in huge savings for both the employee and employer.
What’s more, we’ll be there every step of the way – our car scheme is fully managed at every stage by our talented and friendly team of account managers.
Examples are for illustrative purposes only.
|Benefit in Kind||-£21.32|
There are three key groups we believe would benefit the most:
Cash allowance drivers fall under grey fleet, meaning they have to deal with personal contracts and self-inuring, Salary Sacrifice encourages these drivers to return to the company car. This reduces the administrative and duty of care responsibilities that come with monitoring grey fleet vehicles for employers and employees alike.
As an employer, Salary Sacrifice is a great way to enhance existing reward packages for all staff. Since the scheme can be extended to all employees, it can be used to boost morale, help recruitment and staff retention.
Employees who are eligible for a company car will generally find that they are financially better off sticking with the company car plan, but this may not be true in every case.
Arnold Clark Salary Sacrifice allows you to drive away in a brand-new car leased by your employer for two to three years by exchanging part of your gross salary every month.