03 April 2022
Looking For Employee Perks? This Is The Best Perk There Is
Gone are the days when a good business simply expects the best employees to come to them. Any progressive business now invests a lot of time and money in recruitment and ensuring it attracts the best standard of employee that it can. Recruitment can be a cut throat business and an organisation has to do everything it can to make itself attractive and appeal to potential employees, just as much as an employee needs to sell themselves to the business through a CV and interview process.
Of course the size and structure of a business, and the details of the individual role are key to making a position attractive, but increasingly businesses are looking at employee perks as an effective means of attracting the best employees. These can include personal health insurance, retail discounts, gym memberships, additional leave and training schemes, but one of the most popular to have emerged over the last decade is a salary sacrifice car scheme. This is a way that an employee can allocate a portion of their salary to a lease agreement on an electric vehicle (EV). This reduction is managed by the employer in return for the exclusive use of an EV for the duration of an agreed lease period. Find out more about how a salary sacrifice scheme works.
Why is a salary sacrifice car scheme the best perk there is?
There are many benefits to a salary sacrifice car scheme for the employee.
- Less tax and national insurance – the portion of the employee’s salary that is applied to the scheme is taken on the gross salary. This means that the gross salary is less and hence the payments towards income tax and national insurance are also less. In real cash terms, this is a big improvement for the employee.
- Cheaper motoring – a lease agreement is cheaper than buying a vehicle, because the employee only pays the leasing company for the depreciation of the vehicle. This is always likely to be cheaper than any model used to finance the purchase of a vehicle.
- Reduced CO2 emissions – salary sacrifice car schemes are only available on vehicles with low or zero CO2 emissions, so immediately the employee is reducing their carbon footprint and promoting sustainable motoring.
- New vehicles – because the employee is facing cheaper motoring, they are able to improve the standard of vehicle their monthly budget will stretch to. This allows access to a higher-spec of vehicle and hence better performance, reliability and fuel efficiency. Furthermore, lease vehicles will always be new or nearly-new.
- One payment – a lease agreement will include the monthly payment to the leasing company for exclusive use of the vehicle, but will also include service and maintenance and insurance, and because there is no road tax to pay on an EV, all your monthly motoring costs are included in one single payment.
- Flexible terms – a big benefit to the employee with a salary sacrifice car scheme is that it is a low-risk commitment. The lease term can be from six months up to 48 months, but importantly, if the employee decides to leave the company they can be released from the lease agreement, they are not obliged to keep the vehicle and are not committed to still paying for it.
Affordable motoring with Pink Salary Exchange
If you are interested in a salary sacrifice car scheme they are free to sign-up for and very easy to manage for the employer. At Pink Salary Exchange we have used our years of experience to design a product that offers the very best perks for the employee in terms of tax-efficiency, flexibility, vehicle quality, sustainability and of course cost. Our scheme is industry-leading and HMRC-approved so provides great benefits for the employer too, so contact Pink Salary Exchange today and make sure your business attracts the best employees by offering the best employee perks.