What is salary sacrifice?
Salary sacrifice is a perk that employers can offer their employees, where the employee agrees to forgo a portion of their pre-tax salary in exchange for a fully electric car.
This reduces the employee's taxable income, which increases their take-home pay.
Employers benefit from salary sacrifice as they save on National Insurance Contributions (NICs) due to the reduced employee salaries.
The adoption of electric vehicles through salary sacrifice also helps the environment and improves a company's ESG ratings.
Benefits for your business
- There is no set-up fee. Instead you pay a fee derived from the company National Insurance and VAT savings.
- Full support package - OVL Group, in partnership with the car salary sacrifice experts SalSac, manage the whole process.
- The scheme can be tailored for your business, for example limiting employee choice to only low or zero emission vehicles, size or type of vehicle or contract length y
- When electric vehicles are chosen it will assist your green agenda and help to deliver on your Environmental, Social, and Governance (ESG) and Corporate Social Responsibility (CSR).
- The scheme assists with duty of care and health & safety in the management of grey fleets.
- If an employee leaves the company, their lease vehicle can be transferred to the employees new employer or to another employee in your company, subject to eligibility criteria.
Benefits for your staff
One set monthly salary deduction, includes:
- Significant savings compared to retail alternatives
- Vehicle servicing, maintenance and repair
- Tyre replacement due to wear & tear
- Roadside assistance in the event of a breakdown
- Road fund licence and fully comp insurance.
- Home charger
- Tax & NI savings - Because payment is taken from the employee’s gross salary via payroll, they benefit from Tax and National Insurance savings (typically 30-40% savings for an electric vehicle) making the rental substantially less than a Personal Contract Hire (PCH) agreement.
- No deposit or employee credit check.
- A new car every 2-4 years
Arrange a fact finding call today
For a free fact finding call with one of our Salary Sacrifice experts, please get in touch
T - 01491 615500
E - sales@ovl.co.uk
Find us on social media @OVLGroupLtd