New salary sacrifice scheme is tailored to be risk-free
Created following extensive consultation with employers and a successful pilot, the "simplydriveit" scheme provides a bespoke, flexible approach to the market as well as the opportunity for major cost savings – Pendragon Contracts says the scheme could result in savings of around 30% for the employee and significant NI savings for the employer. In addition, the product enables the company to drive its green credentials and contribute towards meeting its Duty of Care obligations.
And, importantly for fleets, Pendragon Contracts says that the scheme should be risk-free for companies because contractual liabilities associated with a resignation, early termination or vehicle write-off are eradicated, as gap insurance and early termination cover are mandatory.
Salary sacrifice schemes work by enabling employees to sacrifice part of their salary before tax and National Insurance (NI) is calculated under the terms of their employment in return for acquiring a company car. By selecting a vehicle with low CO2, the Benefit-in-Kind paid will be less than the Income Tax and NI. In addition, the cost of the lease reflects corporate discounts on the vehicle – which are not normally available to retail customers – further reducing the net actual cost to the employee compared with a personal contract plan.
simplydriveit has the facility to create a quote simply online through the dedicated Pendragon webquotes system and provides rapid access to all marques and models.
Employers can lease the vehicle from Pendragon Contracts and the full cost of the lease together with three years' fixed fully comprehensive motor insurance is deducted from an employee’s gross salary through the payroll.
The simplydriveit package incorporates the purchase of the vehicle, depreciation, resale value and interest charges, with the option to purchase the vehicle at a preferred rate at the end of the lease period. The vehicle is provided under a full maintenance scheme, which includes the Driver Information Pack with details of the hotline number for motorists to call to manage their maintenance requirements.
Mike Roe, sales & marketing director of Pendragon Contracts, said: 'The benefits of simplydriveit to employers and employees alike are significant. Our scheme has been designed to be risk-free and without any burden on admin. Its flexibility, ease and simplicity will ensure that the employee journey is straightforward and the employer can implement the programme securely and effortlessly. With rapid access to thousands of cars, short lead times are guaranteed and the programme can be tailored to very specific requirements.'For more of the latest industry news, click here.