Benefits of Salary Sacrifice Highlighted at Fleet & Mobility Live 2023
Car salary sacrifice schemes, such as TCH Salsa, have many clear benefits for both employees and employers. As an employee of a company that offers a scheme, you can enjoy a brand new car with all the additions of insurance, servicing and maintenance included. Employers get the fantastic benefit of attracting great staff, higher worker satisfaction and employee retention.
Speaking during The Big Salary Sacrifice Debate at Fleet & Mobility Live was Jez Howson, employment tax director at Azets. Howson stated that suggesting to employers that they should offer a car salary sacrifice scheme to their employees is “one of the easiest conversations I’ve had in 30 years”.
Choosing a zero emission vehicle can mean even further benefits, as company cars are subject to benefit-in-kind tax – however, this is only 2% for solely battery powered electric vehicles. This can lead to savings overall as the employee can sacrifice a portion of their salary before tax, which results in both income tax and national insurance savings.
Howson added that “you can explain it to employees as a genuine opportunity to move away from petrol and diesel cars.”
This means that by having access to a brand new zero emission car from TCH Salsa, you can not only make savings on your monthly tax and vehicle costs, but also make a more environmentally conscious car choice.