Alphabet has formally announced its own version of salary sacrifice called Motivational Leasing, which it claims is the most intuitive quoting system on the market.
The contract hire company – ninth largest by fleet size in the 2009 FN50 table – believes the salary sacrifice sector is about to grow significantly as other leasing providers come into the market with their own products, and large companies sign up to the schemes.
Salary sacrifice allows companies to use bulk buying power to supply lower cost vehicles to staff not entitled to a company car in place of part of their salaries, with the attraction of a high value item that with low emissions would be taxed at a lower rate than their pay.
Alphabet director Mark Sinclair said: “Employees can make their choice based on how much net salary they want to sacrifice. The calculator will show all the vehicles they can afford and they can whittle that down with various criteria to the selection that most interests them.”
He said Alphabet also offers insurance packages against early termination or maternity and paternity leave to reduce the financial risk for companies signing up.
Alphabet predict a take-up of between 5% and 10% of eligible staff of those companies signing up and says it has been proactive in educating companies as to the potential benefits through roadshows.
It also believes that the vast choice of cars becoming available with CO2 emissions up to 140g/km was making the schemes more appealing.