CBVC Vehicle Management has launched a salary sacrifice scheme.
Salary sacrifice schemes are growing in popularity. According to the British Vehicle Rental & Leasing Association (BVRLA), salary sacrifice is the fastest growing car financing method.
Salary sacrifice is driven by the tax and National Insurance savings available to non-company car qualifying employees, who give up some of their gross pay for a fully funded and maintained vehicle.
Benefit in kind tax is still levied on the car. But with electric car tax rates locked at 2% until end of financial year 2024/25, it’s a cost-effective method of providing an employee benefit that is less expensive than an employee leasing the car personally.
Mike Manners, Managing Director, CBVC Vehicle Management, said:
We’re really excited to launch our salary sacrifice scheme as we know there is huge demand right now. As well as supporting the green agenda, there are clear benefits for employers in terms of an excellent staff retention tool, and for employees, who gain from a fully provisioned vehicle at a lower cost than if they were to pay privately.
Salary sacrifice works by employees giving up some of their gross salary for a fixed budget, fully provisioned company car. The employee makes savings on income tax, National Insurance and the Health & Social Care Levy by taking a lower taxable income. The savings mean that zero emission cars are also highly attractive to staff not currently in an existing company car scheme.
While EVs are the most efficient cars to run on a salary sacrifice, ultra low emission vehicles – such as plug-in hybrids – are also suitable for salary sacrifice.
Benefit from multi-bid leasing
Multi-bid leasing offers a salary sacrifice car at the best possible contract hire rental. That’s because CBVC Vehicle Management puts a car out to a panel of funding partners. Sometimes the rental difference between funders can differ by as much as £200. So the funder with the lowest rental wins the deal, helping to deliver cost-effective fleet management to you on every occasion.
Trusted fleet management and Duty of Care mitigation
With CBVC Vehicle Management you also get expert in-life fleet management. This includes a driver app which provides all the essential phone numbers your driver will require during their lease rental agreement. This covers everything from whom to call for a tyre repair to booking a service.
For fleet managers, in addition to supporting the transition to a greener fleet, there are significant benefits in de-risking fleet operations – including the phasing out of private cars used on business (often called the grey fleet), which is one of the biggest risk factors facing fleets, and provides a more coherent approach to Duty of Care management.
Salary sacrifice is suitable for fleets of most sizes.
For a free consultation
Please call Andrew Baker or Julie Hayes on 01283 351202 or email salsac@cbvc.co.uk.
Want to know more?
We have a free downloadable report outlining the key benefits of salary sacrifice and how it could work for your business. Go here to access the report.
