Fleet Alliance tackle grey issues with salary sacrifice launch
Fleet Alliance, the Glasgow-based fleet solutions provider has decided to extend their employees benefits package whilst helping companies tackle their grey fleet issues by launching a new salary sacrifice scheme that provides access to a wider choice and more environmentally friendly cars via a fully automated and online, web-delivered scheme for its fleet and corporate customers.
“We felt that a salary sacrifice scheme was an essential part of our client offering and so have moved to launch this new online service for new and existing customers,” said managing director Martin Brown.
“We feel it will have particular appeal for companies that, as part of their employee benefits scheme, want to provide the choice of a car to a wider proportion of their employees than would normally qualify to receive a company car through their job grade.
“It will also appeal to those companies that have a large number of grey fleet cars, created through the provision of cash for car allowances, as it will help tackle duty of care issues,” he said.
The Fleet Alliance salary sacrifice car scheme promotes low emitting vehicles, typically of 140g/km or less, as these are also the most tax-efficient, which as a result, tackles the issue of grey fleet issues staff, who would typically drive older, more polluting, and less well maintained cars on company business. To meet duty of care considerations the scheme also includes driver licence checking as part of the offering.
The scheme permits an employee to surrender part of their salary for a non-cash benefit. Because the cost of the benefit is deducted from the employee’s gross salary, there are savings in income tax and National Insurance contributions. Instead, employees have to pay Benefit in Kind taxation on the value of the benefit received but this is at the rate of 10% for a sub 120g/km vehicle and 13% for an equivalent diesel, for example, which is more than offset by the tax and NIC savings.
Employees have an increasingly wide choice of vehicles to choose from and can decide how much salary they wish to sacrifice They are then able to view the choice of vehicles available in the Fleet Alliance scheme online with their full specifications, tax commitments and monthly lease rates, before deciding which one to opt for.
Cars provided in this way remain company cars as the relationship is between Fleet Alliance and the company. The cars are issued to employees with full maintenance and servicing already provided within the price, along with breakdown cover and even replacement tyre cover.
For the employer, the Fleet Alliance scheme brings savings in Class IA National Insurance on the salary being sacrificed, as well as controlling demands for salary increases through offering a better total rewards package and being perceived as a staff retention tool at the same time.
The scheme also helps employers meet duty of care obligations by providing employees with a fully-maintained and serviced vehicle as well as offering potential savings on daily hire and pool car use.
Fleet Alliance managing director, Martin Brown, added: “We are delighted to be able to offer this salary sacrifice scheme to our customers and prospects, as we believe it has many advantages and very few disadvantages for employer and employee alike.”
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