Budget 2011: Salary sacrifice now even more attractive, says Pendragon Contracts
Mr Francis said: 'The company car tax increase is a double blow for the employer and the employee, especially for drivers of higher emission cars. We strongly advise customers and prospects to have a well-defined and structured fleet policy, driven by the whole cost of the vehicle as well as taking account of the BiK costs for the employee and employer.
'In addition, more and more employers are entering into correctly structured salary sacrifice schemes that will save NI for the employer and drivers which can make significant savings to both parties – typically around 30% to the employee given the tax and NI as long as the vehicles introduced have low carbon emissions.
'We advocate driving employees towards vehicles that emit less that 100g or preferably 95g and below. By selecting a vehicle with low CO2, the BiK paid will be less than the tax and NI previously levied. In addition, the cost of the lease from our scheme reflects significant discounts on the vehicle not normally available to retail customers, further reducing the net actual cost to the employee compared with a personal lease or purchase plan.
'There’s never been a more appropriate time for companies to advocate salary sacrifice for the benefit of their organisations and to boost the pay packets of their employees.”For more of the latest industry news, click here.