As the sal sac fleet expands quickly, you could lose control of it. Employees choosing sal sac might have come out of private cars, and so this is their first experience of a leased vehicle, and the particular demands of looking after that,” said Goldin. Risk management applies to salary sacrifice as much as to conventional company cars: employees that don’t look after their cars, cost a lot in repairs and servicing will result in the employer paying more for insurance and the provider upping maintenance package charges over time.
Business sees lead times coming down to much more manageable levels across the board as manufacturers not only increase the supply of EVs to the market, but also expand the range of cars available, thereby widening consumer choice.
CORPARISON has partnered with The Car Expert to provide more businesses and staff with its salary sacrifice scheme which can save up to 50% on electric car lease deals.
Partnership aims to provide cost-effective solutions to thousands of carwow’s clients through salary sacrifice, addressing their company car requirements and helping them transition to electric. With the help of Corparison’s salary sacrifice scheme, a business can offer their staff savings between 30-50% on the latest electric car lease deals.
Fleet management specialist, Fleet Alliance said that since the start of this year, dozens of companies have taken advantage of its salary sacrifice scheme, which is aimed primarily at SMEs but which is available to businesses of all sizes. A typical example is Glasgow-based full-service property, data services and energy provider, HFD, which has introduced a salary scheme with Fleet Alliance for all 135 of its employees.
UK drivers’ ability to afford vehicle maintenance is compromising the safety of drivers and other road users – and for businesses, it’s increasing grey fleet risk – with the research also revealing that only 40% of drivers feel financially prepared to pay for essential work to keep their vehicle safe. Additionally, one in four drivers has got behind the wheel knowing their vehicle needed essential maintenance – a number increasing to 46% for those under 35.
Latest analysis from Fleet Evolution shows that an electric car leased through a salary sacrifice scheme can not only save income tax but it can, for employees with children, also help protect valuable childcare benefits. An employee with three children and earning £48,000 a year, would be earning an estimated £55,000 in 2027/28, based on average 5% annual pay increases. This will take them into the 40% tax band and means they lose 50% of their childcare benefit, roughly on average £120 a month, as this is index linked.
RESEARCH from Churchill Expert, Direct Line Group’s flexible fleet insurance provider, reveals a quarter of London based drivers whose current vehicle doesn’t comply with the emissions standards for the expanded Ultra Low Emission Zone (ULEZ) are planning to switch to a compliant model.
Some 55% of employees said that they would not have opted for an electric car had it not been provided through a salary sacrifice car scheme, while factors that informed their decision to switch to an EV included the provision of workplace charging and the high costs of fossil fuel.
Available via a new app, which is free to all customers, ReturnCheck is intended to remove the risk of the employee handing back a damaged car after their final salary payment has been made, leaving the employer no means of recovering the cost.
Hosted by Andrew Leech, founder and managing director at the EV salary sacrifice and fleet management specialist, who has over a decade’s experience of running an electric car himself, the latest in a series of webinars begins on Friday February 3rd at 1.00pm. It then continues on Tuesday evenings at 7.00pm before repeating on subsequent Fridays at 1.00pm.
While research has found that the transition for many fleets is underway, 29% of businesses state that half or less of their company car fleets will be electric vehicles (EVs) by 2027. These organisations are at risk of a sudden and significant transition to electric when the 2030 ban on internal combustion engines (ICE) comes in just a few years later. This could leave them struggling with driver adoption and acceptance, adapting their existing policies to include EVs, and most significantly, workplace charging infrastructure and public charging strategies.
Twelve months ago, Fleet Evolution exhibited at the Chartered Institute of Personnel and Development (CIPD) Exhibition which is typically attended by around 5,000 HR decision-makers. A survey of visitors to the stand during the event revealed that only 15% were aware of salary sacrifice schemes for cars, particularly electric cars. A year later and Fleet Evolution attended the equivalent CIPD event where a similar survey amongst HR decision-makers produced exactly the same result.
Drivers choosing a salary sacrifice scheme could drive an electric vehicle at a far more accessible rate than if they were to lease the same car privately, thanks to tax and National Insurance reductions. While there is still benefit in kind tax to pay on the vehicle, it remains at a significantly low rate to encourage the uptake of electric cars.
Fleet Alliance scheme offers a number of USPs; for example, a dedicated driver support team helps drivers find special offers and available stock vehicles; there is no mandatory Early Termination Insurance; there is no minimum number of employees; the company’s E-Fleet software is available to help manage the vehicles; while competitive tendering via a panel of funders selects the most price competitive monthly rentals, with access to special offers
Oil production is now said to be at the lowest levels since the pandemic when demand was driven down by the impact of the coronavirus lockdown. This has led to pump price rises across the board with the average UK price of diesel reaching 186ppl and that of unleaded 164ppl according to the latest figures from the RAC, although regional figures may be higher.
Affordability is being additionally affected by wider economic conditions when people feel their personal finances are increasingly under pressure. There’s a potential question emerging about whether businesses should even be promoting sa lsac at a time when some people may be struggling to meet their heating bill or their mortgage payment.
Research from Direct Line Group’s specialist flexible fleet insurer Churchill Expert reveals that as the 2030 deadline for stopping the sale of petrol or diesel cars approaches, business decision makers appear to back the scheme. Half of SMEs (49%) believe that all companies should offer the ECSSS to employees, stating that doing so is part of their company’s responsibility to reduce its carbon footprint while 37 % believe it would be irresponsible not to offer it.
There is a misconception that salary sacrifice car schemes are for the more highly paid employees who are paying tax at 40%, but in reality, the ones they really benefit are ones at the lower end of the pay scale paying tax at 20%, as you cannot allow a salary sacrifice to take net pay below the minimum living wage
Employees will be able to lease up to two vehicles for two, three or four years. Subject to surveys, each lease holder will have an electric vehicle (EV) charge installed at their property, and for every five leases, there will be a charge point installed at a Stantec UK office ensuring employees can charge while at work and alleviate range anxiety.