Venson launches salary sacrifice scheme
As the Government looks to cut personal tax thresholds, introduce a 50% tax rate and increase NICs, Venson Automotive believes that there will be a sharp increase in employee interest in salary sacrifice schemes, particularly from drivers taking cash allowances. This can also have benefits for the company in terms of improving duty of care and the carbon footprint.
However, the company says it's important to do the maths before switching over. Venson Automotive Solutions' online fleet management system, Venson Interactive, now includes a sophisticated quotation system that enables both employers and employees to calculate whether or not they would be better off opting to sacrifice salary in return for a company car.
Venson Automotive Solutions' managing director Samantha Roff said: 'Sacrificing salary for a company car is increasingly on our clients' agenda. However, it is not a "one glove fits all" option that is suitable for everyone. Financial calculations must be undertaken on an individual basis and potential employer and employee savings will vary depending on the price and CO2 emissions of vehicles. Where salary sacrifice is appropriate we will make that recommendation.'
Additionally, an employer "legal pack" compiled with help from tax specialists and employment lawyers helps organisations to amend staff employment contracts in the event of them opting to sacrifice salary for a company car.
Ms Roff added: 'Introducing a salary sacrifice scheme will see companies contract hiring vehicles from ourselves. Just as with conventional leasing schemes they want to be certain that they have limited risk exposure. Therefore we have compiled the "legal pack" that provides straight-forward advice in the event of staff being made redundant, on long-term sickness, racking up end-of-contract damage, excess mileage etc. The advice is aimed at ensuring that employers are not left with unwanted cars and large bills by providing them with information on rewriting employees' terms and conditions.'