17 October 2022
Choose A Salary Sacrifice Car Scheme To Beat The Cost Of Living Crisis
The current cost of living crisis and the seemingly endless rise in inflation has posed many different challenges for both employers and employees. Businesses are faced with rising energy costs and fuel costs, while many people are facing a hike in their mortgage costs also. In these challenging times employers are expected to provide some support for their employees, who are facing unprecedented changes to their lifestyles and in some extreme cases have unique pressures where they have to decide whether to eat or heat their homes.
Employers can provide many different types of support in terms of flexible working and wellbeing programmes, which will help employees cope from a physical and mental health point of view. But ultimately the biggest trigger for these pressures is financial, and this is where employers offering a salary sacrifice scheme can be a huge benefit to their employees.
Salary sacrifice schemes are unique, because they provide a type of benefit that the employee can’t receive anywhere else, other than through their work. They are also a great benefit to both the employee and the employer, because they can both make costs savings through the employee paying a reduced tax and national insurance contribution. As long as the type of scheme is one that qualifies, the employee can take the salary amount from their gross salary, and hence they pay less tax and national insurance and make real-time cash savings, as does the employer on their own national insurance contributions.
Why a salary sacrifice car scheme offers the best benefits
However, in terms of facing the challenges of the cost of living crisis, a salary sacrifice car scheme is one the most beneficial types of scheme an employee can opt for. This is because they can tackle their daily commute in a cheaper and more environmentally-friendly way.
Under the salary sacrifice car scheme offered by Pink Salary Exchange, an employee can use their salary portion to lease a brand new hybrid or fully electric vehicle. This reduces their carbon emissions and provides significant fuel cost savings. With winter coming and the expected price hikes being implemented on utilities at home, this could be a very welcome cost reduction.
Furthermore, there are a number of other benefits a salary sacrifice car scheme can offer:
- You can sell your existing vehicle and receive a cash lump sum to help with your additional financial pressures
- You can spread your payments for the vehicle lease and hence are able to manage your money easier without a costly initial outlay
- Leasing a vehicle through a salary sacrifice scheme will most likely involve cheaper payments than if trying to finance the vehicle through a high street financial package
- Service, maintenance and repair is included in your monthly payment so you won’t be faced with any unexpected costs
It is true that salary sacrifice schemes which offer cycle-to-work and holiday trading options are also very popular for people trying to manage their finances and their mental health better throughout this current crisis, but a salary sacrifice car scheme is definitely the option which provides the most benefits in both a practical and financial sense.
Huge cost savings with a salary sacrifice car scheme
For this reason, more and more employers are being requested to sign-up for the scheme, which in many cases is actually cost-neutral for them, but in a sense that perhaps can’t be measured, also provides some very positive benefits for the business. Employees facing unique financial pressures will be grateful for the support provided by cheaper, greener and more practical motoring, and this will also manifest itself in employee loyalty, engagement and wellbeing, and a generally happier and more motivated workforce.
Contact Pink Salary Exchange today and we can fully explain these varied benefits to signing-up for a salary sacrifice car scheme and help you with the process of starting it up and managing it, so get in touch today.