Steve Beadle, who heads Grosvenor Leasing’s salary sacrifice team, explains what makes salary sacrifice schemes so popular: “The swift growth of salary sacrifice is all down to the very low benefit in kind tax (BIK) on electric cars,” he says.
“Put simply, if an employee decides to sacrifice a portion of their salary for an electric car, the amount of income tax and national insurance contributions they pay will reduce.”
Their employer then provides them with a fully funded, maintained and insured electric car, on which they will only be paying very low benefit in kind (BIK) tax. This provides an immediate saving compared to buying that vehicle or funding it through a personal lease, and the employer also gains by making Class 1a NI savings as well as offering an additional staff benefit, at no extra cost.
A unique aspect of Grosvenor Leasing’s salary sacrifice scheme is that it’s virtually risk-free, as it comes with protection against employees leaving the company or going on extended sick or maternity/paternity leave. It’s also very straightforward to put in place, quickly becoming a very important staff benefit offering sizeable savings.
Grosvenor Leasing is the UK’s largest privately-owned contract hire and fleet management specialist, providing a range of vehicle funding and management solutions to well-known names such as Weetabix, Tata Steel, Transport for London and The Salvation Army Trading Company.
For any company seeking information regarding salary sacrifice, Grosvenor has a team of experts on hand on Stand C32 of the CIPD Ace Conference who can offer objective advice.
Contact us: 01536 536 536; firstname.lastname@example.org
Comparing salary sacrifice to a personal lease, a 20% tax payer choosing an MG MG4 Hatchback 125kW SE EV 51kWh 5dr Auto on a 3 year lease, covering 10,000 miles per annum, would save £140.71 per month.
A 40% tax payer choosing a Tesla Model Y Hatchback Long Range AWD 5dr Auto with 10,000 miles per annum over 3 years would save £374.57 per month.