Car club offers salary sacrifice deal
Streetcar will offer employees of companies signed up to the scheme the ability to exchange a portion of their pre-tax salary for a benefit that entitles them to car usage, by purchasing and redeeming a number of “trip codes” per month.
Each trip code will be valid for five hours of Streetcar usage and will represent an effective reduction of up to 50% on the service’s usual hourly rates, due to the pre-tax salary exchange. The scheme mirrors existing salary sacrifice for company car schemes but is more tax-efficient for people who don’t drive frequently. Members benefit from the minimum tax rates associated with Streetcar’s low-emitting fleet and only pay Benefit-in-Kind tax for the days when they actually use a vehicle.
Mark Walker, Streetcar’s general manager, said: ‘We’re delighted to offer this new scheme to businesses that want to provide a compelling incentive to their staff, which combines the benefits of a company car scheme with the convenience and environmental advantages of a car club. In these turbulent economic times where salary increases are not always possible, we are excited to offer a tangible benefit to companies looking to reward their employees in other ways. We’re constantly looking for ways to help people move away from the expensive and inefficient model of individual car ownership, and this scheme helps to make car clubs even more affordable and attractive. By paying directly from gross salary, Streetcar usage is both cost effective and tax efficient.’
An Aon Hewitt spokesman said: ‘For low-usage or city centre-based employees, this benefit is a real alternative to company cars and expensive car hire. There are none of the traditional costs of ownership of company or private cars and the scheme fits well in a flex or salary sacrifice scheme.’For more of the latest industry news, click here.