Electric Vehicles

DGC_SC can help you reduce your vehicle emissions

Now more than ever businesses are under pressure to comply with sustainable business programmes. With the government’s pledge to reduce CO2, the introduction of Ultra-Low Emission Zones, and the increased company car tax for polluting cars, it makes good sense for everyone to get on board with green business practices.

If you’re an employer, you’ll know that attracting and retaining top talent is crucial to the success of any business or charity. This often means offering incentives that go above and beyond the standard insurance and retirement plans. But did you know that salary sacrifice car schemes are a great way to do this?

What is Salary Sacrifice?

Salary sacrifice schemes, also known as salary exchange, are an arrangement where an employee agrees to a reduction in their salary in exchange for non-cash benefits. Examples include a workplace pension scheme, cycle-to-work schemes and other additional benefits such as childcare vouchers.

Salary Sacrifice Car Schemes 

Not only can salary sacrifice arrangements improve employees’ mental and physical well-being, but they can also offer some excellent financial benefits for both the employer and employee. One of the most popular schemes is a salary sacrifice car scheme, in which employees can obtain a brand-new car at discounted rates by sacrificing a portion of their pre-tax salary.

Within this arrangement, the employer leases the car for a set period of time to the employee. Over this period, the employee then repays the cost of the lease through a reduction in their gross annual salary. In turn, this reduces the amount of income tax they are required to pay, meaning they have more disposable income and a new vehicle.

Most people are eligible for salary sacrifice schemes as long as they’re over 21, in full-time employment, and their salary will not fall below the national minimum wage after deductions.

The Benefits of Salary Sacrifice For Employers

When it comes to salary sacrifice arrangements for employers, this is a mutually beneficial arrangement. Not only will your employees be able to save more on taxes, but you could also benefit from lower payroll costs and increased overall productivity. Here are some of the biggest benefits that employers can gain by offering a salary sacrifice car arrangement:

Cost Savings - The most obvious benefit of salary sacrifice arrangements for employers is the cost savings associated with offering them. By allowing your employees the option to reduce their taxable income, you can reduce your corporation tax and national insurance contributions, as you’re paying less in overall wages. This can result in significant savings for employers.

Easy Set-Up - Setting up a salary sacrifice arrangement doesn’t have to be a challenge. If you’re looking to lease vehicles to your employees, you can often get a solution tailored to your business and employees’ needs with minimal effort. This makes it easier than ever for employers to offer the benefit of salary sacrifice schemes without having to put in too much legwork. Fleet Evolution are able to set up a salary sacrifice electric car scheme quickly and easily, so employers can get the most out of these arrangements while their employees enjoy greater savings. 

Retain Top Talent - If you’re a business owner, you’ll know that attracting and retaining top talent is crucial to the success of your business. A salary sacrifice car arrangement can go a long way towards helping you do this. Employees can benefit from the savings on their tax and national insurance contributions, so they’ll be more likely to stay with your company. They’ll also have a range of company benefits that they may not receive elsewhere, so this is the perfect way to keep them incentivised.

Improved Employee Financial Wellbeing - Not only can your employees save more on income tax and national insurance contributions, but they’ll also get access to company cars, which they may not otherwise be able to afford. Employees can save up to 45% on motoring costs through salary sacrifice car schemes! This means that your employees will be better off financially, which will lead to a better work-life balance and increased job satisfaction, translating into improved productivity.

Range of Options To Choose From - Working with an experienced salary sacrifice provider means you’re choosing to work with industry experts. This means you can offer your employees a range of options, from everyday electric cars to Teslas. Having this range of options to choose from will ensure that, as an employer, are able to offer cars to all employees from the most junior to senior..

What is the Administrative Burden for an Employer?

Unlike other schemes, Fleet Evolution’s salary sacrifice car arrangements involve very little administrative burden to employers. As a fully managed scheme, they take care of all the paperwork and legwork, so you can get on the day-to-day running of your business. This makes it easier than ever for employers to offer this great benefit to their employees, without having to worry about the extra work.

Quick rundown on how to get started:

• Fill out our contact form and we will connect you with the right people at Fleet Evolution.
• Fleet Evolution advisors will help you decide which car leasing solution is best for your business. It doesn’t matter if you’re a company of 2 or 2000; they will be able to help provide your company with the latest electric vehicles.
• They will then tailor a solution specifically for you and your employees, with the option of adding on any additional benefits or perks if needed.
• Once you’re happy with everything, they can set you up and ready to go in no time. With a 30-day leaver policy, they are flexible and able to adjust their services as needed.