Fleet World Workshop Tools
Car Tax Calculator
CO2 Calculator
Car Comparator
Van Tax Calculator
EV Car Comparator
BiK Rates Company Car Tax

Lombard: fleets misunderstanding salary sacrifice

By / 11 years ago / Latest News / No Comments

The leasing firm said that a large number of fleets still think salary sacrifice is a money-saving opportunity, when in fact the intention is that they should be cost neutral.

Paulo Larkman, head of fleet consultancy services for Lombard, said: ‘Salary sacrifice is the buzz term right now. This time last year almost no one was talking about it but probably 50% of our major customers are now.

‘However, we have found that there is a lack of understanding about exactly what this method of funding is – how it differs from an ECO scheme, for example.

‘It’s important to realise that salary sacrifice schemes are fundamentally for the benefit of employees, and not to save money for the customer. They are part of an individual’s terms of employment and remuneration package, unlike an ECO scheme. That can bring problems if their technical delivery is not spot-on.’

He added that it was vital that firms offer cars that people want to drive, and perceive these cars differently from the  “job” fleet cars, and understand the implications of early termination when an employee leaves.

For an expert view on salary sacrifice, visit the Fleet World Webinar at www.fleetworldwebinars.com

For more of the latest industry news, click here.

The author didn't add any Information to his profile yet.