SUPPORT IN HELPING LEASING COMPANIES & CLIENTS INTRODUCE SALARY SACRIFICE AS A TAX EFFICIENT EMPLOYEE BENEFIT ON ELECTRIC VEHICLES
What I can offer
Leadership and project management in implementing Salary Sacrifice schemes to provide significant tax savings for both employees and employers.
How it could apply to you
The current Benefit in Kind tax incentives in place for Electric Vehicles have driven considerable interest in EVs for the Company Car eligible community, but they can also be applied to an employee car benefit scheme under a Salary Sacrifice arrangement – delivering significant savings to both employee and employer. An employee foregoes part of their gross salary (and pays less PAYE and NIC as a result). In return for this deduction, they are provided with a company car (on which they will pay Benefit in Kind, as with any company car). If the saved PAYE and NIC outweighs the incurred BIK, then the employee can realise significant tax savings - and if the employee saves in tax, then the employer is also likely to save NIC on that tax.
The key twist here is that Electric Vehicles currently enjoy exceptionally low levels of Benefit in Kind, and so the tax savings on EVs under a Salary Sacrifice scheme are accentuated. Salary Sacrifice on EVs is now enjoying extremely high levels of interest as an Employee Benefit that not only delivers high levels of savings to employees, but also costs an employer nothing to implement and even delivers savings in the form of reduced employer NI contributions.
Having worked with car salary sacrifice schemes for over 10 years, I am well placed to support clients wishing to introduce schemes – helping them consider all the key component parts of the scheme to ensure maximum employee engagement, mitigation of risk for employers and minimised scheme administration while remaining compliant. Working with established vehicle tax experts, we can provide detailed project management and supporting implementation plans to deliver a fully robust Salary Sacrifice scheme to both clients and leasing companies/brokers.
With levels of Benefit in Kind on EVs clearly laid out until 2025, this provides a clear opportunity to leverage tax efficiencies for both employee and employer, while supporting any wider carbon reduction programmes that an employer may have in place towards a 'Net Zero' strategy.