Salary sacrifice scheme on course to save public sector employers £600,000
Paul Fleming, sales and marketing director at Leasedrive, said: ‘Since signing our first three public sector clients back in 2009, we have added new ones each year since and stand to deliver collective savings for eight of them of £630,000 by the end of 2012. In the last two years alone, the savings will have amounted to over £536,000. This represents a saving of over £670 a year in national insurance and pension contributions for every employee joining the mycar scheme.
‘Organisations considering introducing a salary sacrifice scheme should sit up and take note. In the current economic climate, such savings should not be ignored. Additionally, as employers have to be more creative in how they reward their staff; a car salary sacrifice scheme makes even more sense.
‘The environmental savings are clear too. The mycar salary sacrifice scheme encourages employees to choose a lower CO2 emitting vehicle because their benefit-in-kind tax contributions are lower. This means mycar is also helping employers to meet their environmental targets. We can even help them monitor emissions savings, as employees give up older more polluting cars for newer more environmentally friendly vehicles. Additionally, by encouraging employees to join a car salary sacrifice scheme, employers can reduce the health and safety risks and costs associated with the grey fleet,’ he added.
Under Leasedrive's mycar, employees sacrifice some of their salary in exchange for a brand new, more fuel efficient vehicle which is fully maintained, serviced and insured for business use, all at a fixed budgeted monthly cost. The employee saves tax and national insurance on the money sacrificed, making it a very cost effective way of leasing a car.