Zenith has welcomed the Chancellor of the Exchequer Philip Hammond’s decision to give the "green light" to salary sacrifice schemes during last week's autumn statement.
The salary sacrifice provider was “extremely pleased” to hear that vehicles with CO2 emissions of 75g/km or below will continue to benefit from the maximum savings of income tax and employer’s class 1A NI contributions.
It also views the confirmation that all drivers currently in salary sacrifice cars are protected from the future changes as “an extremely positive result of the consultation”.
Tim Buchan (pictured), CEO of Zenith, said: “We welcome the Chancellor’s decision that salary sacrifice schemes can continue to be utilised as an important employee benefit. This news finally removes any uncertainty and allows us to continue to offer affordable cars to all of our customers’ employees.”
He added: “We are confident now that with this mature tax structure in place, the market will continue to grow. The Government’s stamp of approval provides a significant opportunity for us to introduce this benefit to new employee populations. Salary sacrifice for cars will continue to deliver for employees due to its convenience, ease of use, no credit checks or upfront payments and the value for money it provides for drivers. ”
Zenith also welcomed the Chancellor’s announcement on the future of company car tax. Matthew Thompson, CCO at Zenith, said: “We were pleased to hear the Chancellor’s announcement on company car tax changes, which incentivise ultra-low emission vehicles from 2020 and halt the short-term tax increases on the most efficient cars. We continue to see an astonishing pace of change in ULEV availability and the increase of in-life advantages such as parking incentives. With all this rapid development, now is a great time for employees to consider embracing this new technology and the advantages it will bring in the future.”
He added: “We believe that in allowing ULEVs to benefit from the maximum tax savings through salary sacrifice, the Government has paved the way for manufacturers to continue to make these vehicles more affordable for the average driver. Through the entire autumn statement it was clear that the Government sees the future of transport being in greener technologies and as a business, Zenith embraces that decision. We are now looking forward to advising our drivers on how they can choose the most cost-efficient option for their individual circumstances, under the new rules.”