You should consider setting up a Vehicle Solutions defence salary Sacrifice scheme if you have a vehicle fleet. The process is easy, and the benefits of Salary Sacrifice can be very compelling for you and your employees. In this article, we will discuss the benefits of Salary Sacrifice, how it works, and the requirements that you will need to meet to benefit from Salary Sacrifice. We will also explore how Salary Sacrifice schemes benefit both employers and employees.
Benefits of salary sacrifice
Introducing a new scheme for salary-sacrificing employees, the Vehicle Solutions defence scheme aims to provide brand-new cars to employees at a cost that is affordable for both the employee and the employer. The scheme helps employees drive electric or hybrid cars, and employers save money on Class 1 National Insurance. It also contributes to reducing the environmental footprint of the grey fleet. Employees opt for the Vehicle Solutions defence salary sacrifice scheme will get a brand-new car with maintenance and insurance.
The scheme is easy to set up and provides many other benefits, including reduced tax bills and free access to e-Fleet, the company’s fleet management software. The Glasgow-based company Fleet Alliance runs Vehicle Solution’s defence salary sacrifice scheme. The company has chosen the current automotive environment as the ideal time to launch the scheme. Employees can choose from leasing up to two vehicles during the scheme.
Costs of salary sacrifice
A salaried employee can take advantage of various benefits fleet operators offer. Salary sacrifice, also known as salary packaging, reduces an employee’s taxable income by bundling a car and its running costs into one monthly payment. These benefits include a range of fleet discounts, half-price car washes, the chance to earn BP Rewards points, and 24-hour driver support.
A cost-neutral option for employers is a salary-sacrifice car. The employee uses the car for personal use, and the employer leases it to them for a fixed period, typically 36 months. The salary-sacrifice car is used the same way as a private car, so the company only pays for the difference in the value of the car’s fuel.
Requirements for salary sacrifice
Salary sacrifice has many benefits for companies that operate a vehicle fleet. First, it helps them reduce the costs associated with running the vehicle, such as fuel, engine oil, and insurance. Second, the scheme can help employees save money on maintenance and registration fees and potential fines and excess mileage costs. Third, it’s simple to set up and can benefit both employee and employer. If you’re considering setting up a Vehicle Solutions defence salary sacrifice scheme, read more about its benefits and how to get started.
A salary sacrifice scheme allows employees to take advantage of the latest technology and drive a fully electric company car while saving money on tax. They can even reduce their National Insurance bill by choosing a low-emission vehicle. The scheme also benefits the employer, as they can take advantage of lower personal benefit in kind taxation on electric or ultra-low emission cars. It’s a win-win-win for both parties, as salary sacrifice can provide a lucrative benefit for both employee and employer.
Ways to benefit from salary sacrifice
You may be eligible for salary sacrifice on new cars or novated leases when you work for the defence sector. Check out the company’s online calculator and no obligation quote to learn more about salary sacrifice. It’s easy to see why salary packaging is an excellent benefit for the defence sector, and it’s a way to save money on the car of your dreams. First, however, you should ensure that your employer is on board.
Another way to benefit from salary sacrifice is to buy a brand new car through the Defence Supply Chain (DSC). You may even make substantial tax savings by obtaining an ultra-low emissions vehicle, which will help the company’s duty of care to its grey fleet drivers. However, you’ll need to be aware that you’ll have to pay 20% of the car’s FBT value, which is the cost of the car plus the GST. The Vehicle Solutions website will have all the necessary information and will provide a breakdown of the tax you must pay.
