Lex Autolease enters salary sacrifice arena
Lex Autolease's "Salary Sacrifice" product will be made available to all large corporate fleets with an existing fleet of more than 500 vehicles or an employee base above 1,000 staff. The firm says that companies can then decide if it is appropriate to extend the scheme to employees' friends and family.
Claudia Rose, corporate sales director at Lex Autolease, commented: 'Our offer is about making company cars available to all and helping all parties share in the tax savings derived from salary sacrifice. There's no better way to introduce employees – and their friends and family – to cleaner, more affordable and hassle-free motoring.'
The firm is highlighting how the scheme can benefit participants. It calculates that employees stand to save over £1,000 per
year compared to other forms of financing such as PCP schemes, while the employer will generate £500 per vehicle, per year in savings (example: VW Polo 1.4TDi).
Based on the assumption that a customer could achieve a take-up rate of around 30 units per month over a three-year period, Lex Autolease says this could generate annual savings of over half a million pounds.
Ms Rose added: 'There is significant pent-up demand in the grey fleet sector for employee benefits like company cars, particularly if they offer tax breaks in a hassle-free, payroll based package like salary sacrifice.
'There is no expectation that fleets will make a wholesale switch from traditional contract hire to salary sacrifice but, for corporate businesses with a high number of non-company car drivers, the take up levels could be as high as 10%. And if you consider the cumulative effectives of those NIC savings, it makes sound business sense.'
For more information on salary sacrifice for company vehicles, visit Lex Autolease's website at www.lexautolease.co.uk/salarysacrifice