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Salary Sacrifice: Kirklees Neighbourhood Housing sign up to Pendragon Contracts’

A social housing organisation is the latest company in the UK to adopt the new salary sacrifice scheme from Pendragon Contracts.

Kirklees Neighbourhood Housing (KNH) is an arms length company (ALMO) that manages more than 23,000 homes on behalf of Kirklees Council in West Yorkshire. The introduction of the new scheme will enable KNH to provide savings of around 30 per cent for its employees while achieving significant NI savings as well as increasing its green credentials and contributing towards meeting its Duty of Care obligations.

KNH will now be able to allow employees to sacrifice part of their salary before tax and National Insurance, under the terms of their employment in return for acquiring a company car. By selecting a vehicle with low CO2, the employee enjoys savings made on Income Tax and NI which more than offset the benefit-in-kind charge due. In addition, the cost of the lease reflects corporate discounts on the vehicle not normally available to retail customers, further reducing the net actual cost to the employee compared with a personal contract plan.

One of the first employees to take up the scheme at KNH is new driver, Sanele Mhlanga, who says: “As a new driver, I had expected to have to save up for some time and buy a second hand car. The salary sacrifice scheme enabled me to opt for a new Vauxhall Astra, providing an opportunity I would not otherwise have had. The process was simple to follow and I received an enormous level of support from Pendragon Contracts – the team even came to visit me twice to talk me through the process. The company provides a one stop shop for all my needs, including insurance and repairs – I even received a free Pendragon goodie bag with all the extras I might need, which I thought was a special touch and shows how willing the company is to go above and beyond for its customers.”

Mike Roe, sales & marketing director of Pendragon Contracts, says: “Our salary sacrifice scheme aims to be totally risk and admin free for organisations and provides a bespoke, flexible approach to the market. We were able to tailor our service to Kirklees’ requirements to ensure its employees benefit from a cost-effective approach. Servicing, insurance and RFL is all included so all employees have to do is put fuel in the car. With rapid access to thousands of cars, we are able to offer KNH guaranteed short lead times.”

Sue McConnell, human resources manager at Kirklees, adds: “Thanks to the flexibility of the simplydriveit scheme we have been able to integrate the salary sacrifice scheme into our organisation with ease. We chose Pendragon Contracts based on its risk-free approach and promise of minimal burden on our admin staff. The new scheme will enable us to offer a cost- effective fleet solution to our employees while upping our eco credentials.”

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