Jaama puts customers first with Key2 functionality improvement
The salary sacrifice module enables lease companies to set customer specific schemes and also manage the related contracts.
Employees are provided with access to a web quotes system to choose their preferred vehicle and the system will then calculate the expected salary deduction value. Once the quote has been approved, Key2’s efficient workflow will use the information to create the necessary order, vehicle record and contract with minimal manual intervention.
Car salary sacrifice schemes are rapidly growing in popularity with employers who want to attract and retain staff with flexible employee remuneration benefits.
Jaama’s leasing customers’ report that not only is salary sacrifice being provided to their existing customers along with or instead of traditional leased company cars but they are also winning new customers because they have added the option to their product portfolio.
A number of mid-sized contract hire and leasing companies use the sophisticated, internet-based Key2 Contract Hire and Leasing system to manage all aspects of their business.
To assist organisations offering cutting-edge car salary sacrifice solutions to their customers, Jaama has enhanced Key 2, which now has the ability to:
Produce a list of all cars available based upon an exact net salary sacrifice amount or value range.
Enable company car drivers to add a salary sacrifice vehicle for friends or family, so salary sacrifice is available as a benefit in addition to an employee having a company car.
Clearly identify to companies what their ‘retained’ savings will be from a salary sacrifice calculation.
Provide companies with a salary sacrifice tax make-up sheet.
Salary sacrifice schemes are at their most cost-effective when salary, taxed at 20%, 40% or 50% plus National Insurance contributions, are swapped for a benefit, which is taxed at a lower rate. For example, company car benefit-in-kind tax rates on mainstream petrol-engined cars start at 10% in 2012/13 and 13% for diesel models) with a lower rate (5%) for ultra-low emission cars (up to 75 g/km) and 0% for zero emission models.
Essentially savings can be made in two significant areas:
Employees – can make tax and National Insurance savings by sacrificing salary in return for a benefit-in-kind with a lower tax burden.
Employers – can make Corporation Tax savings by ensuring low emission cars are selected and simultaneously cut their National Insurance contributions.
There are additional environmental and financial benefits associated to a salary sacrifice scheme as low CO2 emitting vehicles have low fuel consumption so running such cars means reduced fuel bills.
Key2 takes the very latest vehicle information feeds from specialist data provider CAP thus enabling leasing companies to provide comprehensive financial quotes on any car, including options, selected by employers or their staff.
'Contract hire and leasing companies want to be able to offer salary sacrifice. However, they need the functionality to be able to provide exact financial calculations to both their customers and their customers’ employees and Key2 does exactly that.
'Reducing administration and improving efficiencies for both themselves and their customers are among the reasons why contract hire and leasing companies choose Key2. The salary sacrifice module enhancements deliver those benefits particularly in terms of highlighting tax efficiency options for businesses and their staff.'