NWL has awarded Tusker a four-year solus supply contract to provide cars for its company car scheme and its new salary sacrifice scheme, which forms part of its flexible benefits package available to around 3,000 employees.

NWL has a fleet of 350 company cars and previously operated an employee car ownership scheme with another supplier, but has now switched to contract hire with Tusker.

In order to reduce the carbon footprint of the car fleet and control fuel costs, the benchmark vehicles have been capped at an emissions level of 160g/km across all job grades, with employees having to contribute financially if they wish to order a new vehicle above this limit.

Michelle Legg, compensation and benefits manager at Northumbrian Water responsible for implementing the salary sacrifice car scheme, said: 'This benefit is available to all employees who may choose to take a car for themselves or for a member of their immediate family, giving savings on tax and National Insurance and benefiting from NWL fleet discounts. The scheme is based on lease hire arrangements and at the end of the scheme it is possible to request a price to purchase the car.

'Employees have a free choice of car in the salary sacrifice scheme provided that emissions do not exceed 160 g/km which mirrors the structure of our company car scheme.  This ensures that savings are maximised but also supports our environmental aims.

'To date we have had 53 orders for new vehicles through the scheme, since the launch in October,' she added.

Tusker says its SalarySacrifice4Cars scheme, SS4C, is seeing growing interest from firms looking to reduce tax and National Insurance Contribution liabilities for themselves and their employees.

Managing director David Hosking commented: 'We are also now talking with a number of public sector bodies and Government organisations who are looking to launch schemes for tens of thousands of employees during 2010. In addition, we are in the final process of agreeing formal strategic relationships with two of the largest accountancy firms in the UK.'

He added: 'We are aware of a number of companies who are considering replacing their entire company car scheme with a salary sacrifice car scheme. For example, we are currently working with a very large fleet who are considering coming out of "traditional" contract hire altogether in favour of a salary sacrifice car scheme.'