Committing to a 2/3/4 year car lease for an employee as a business can be extremely risky. What is that member of staff leaves part way through the contract?
You’re then left with a car that you need to store, insure or pay an early termination fee to send back.
So why not consider flexible car subscriptions?
Flexible Salary Sacrifice Schemes
Whilst slightly more expensive than traditional car leasing, the benefits to you are enormous with the bonus of all of the contracts are flexible.
You can off hire the vehicles with little notice and only pay for the time in the car.
We already know the benefits of a salary sacrifice scheme. It can save both the employer and employee money:
Savings include national insurance and where applicable corporation tax. On top of that you are offering your employee a huge incentive by offering the latest car payable by sacrificing some of their pay.
The employee takes the hit by sacrificing part of their salary, but in return they save a massive amount of National Insurance and Tax. On top of that they get to drive the latest cars.
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If you would like more information on our flexible salary sacrifice schemes, please contact the team on 0113 320 8115 or complete the ENQUIRY FORM below.
A salary sacrifice scheme is a great benefit for both the employer and the employee.
The employees sacrifice a fixed amount of their salary each month in exchange for a car subscription.
The amount taken is before income tax and National Insurance, so employees and the business save money on the reduction of contributions.
The savings for the business are quite noticeable.
For starters as the employee is taking a reduction in their salary, the employer saves National Insurance.
It also offers a fantastic incentive to the employees which can boost morale and reduce high staff turnover.
If the member of staff leaves, as this is a flexible solution, the cars can be handed back and you only pay for the time in the vehicle.
For the employee, not only do they gain access to a shiny new car but they will also save on income tax and National Insurance.
They have the option of driving some of the latest cars including the popular option of driving an Electric or Hybrid car.
There is no risk for your employer if you hand the car back as it can go back with little notice and no early termination charges.
On top of this the car comes with maintenance, serviving, warranty and road tax for the duration.
You can also swap your car on a regular basis.
With traditional salary sacrifice schemes, if an employee leaves you would be left with the balance of the contract. You could of course reallocate the vehicle to another employee.
But with our flexible scheme, you simply hand the car back giving us very little notice. The business/employee then only pays for the time the car has been out on hire.
No, it does not cost any money to set-up a salary sacrifice scheme and over time it will actually save money for the employer and employee.