Kirklees Neighbourhood Housing opts for salary sacrifice
Kirklees Neighbourhood Housing (KNH) is an arms length company (ALMO) that manages more than 23,000 homes on behalf of Kirklees Council in West Yorkshire. The introduction of the new scheme will enable KNH to provide savings of around 30 per cent for its employees while achieving significant NI savings as well as increasing its green credentials and contributing towards meeting its Duty of Care obligations.
KNH will now be able to allow employees to sacrifice part of their salary before tax and National Insurance, under the terms of their employment in return for acquiring a company car. By selecting a vehicle with low CO2, the employee enjoys savings made on Income Tax and NI which more than offset the benefit-in-kind charge due. In addition, the cost of the lease reflects corporate discounts on the vehicle not normally available to retail customers, further reducing the net actual cost to the employee compared with a personal contract plan.
Mike Roe, sales & marketing director of Pendragon Contracts, said: ‘Our salary sacrifice scheme aims to be totally risk and admin free for organisations and provides a bespoke, flexible approach to the market. We were able to tailor our service to Kirklees' requirements to ensure its employees benefit from a cost-effective approach. Servicing, insurance and RFL is all included so all employees have to do is put fuel in the car. With rapid access to thousands of cars, we are able to offer KNH guaranteed short lead times.’For more of the latest industry news, click here.