Leasedrive Velo has produced an 'Essential Guide to Car Salary Sacrifice Schemes.' The company launched its own salary sacrifice scheme called EnviroDrive in October 2008 promoting the cost saving and environmental benefits.
Roddy Graham, commercial director at Leasedrive Velo, said: "Take-up of salary sacrifice schemes for cars has been slower than it ought to be. We launched our own scheme two years ago and this year has suddenly seen a rash of new schemes by leasing providers. However, while some providers may have been slow in offering schemes, some of the blame for poor take-up must lie with HR and, in particular, the compensation and benefits community. In many cases, they have not taken the time to fully understand the 'ins' and 'outs' of salary sacrifice or, when convinced, properly developed an implementation plan and clearly communicated the benefits of the company car as a benefit under salary sacrifice. Given that the company car is one of the most valuable, high profile and emotive employee benefits, this can often represent an oversight on the part of HR to properly seize the initiative, especially at a time when they have to be more creative with total reward packages."
The essential guide looks at the background; answers what is a salary sacrifice; where HMRC figures; looks at what an employee and employer has to consider; considers car salary sacrifice schemes, identifies the benefits of car salary sacrifice schemes to an employee and the employer; investigates potential issues and concludes that salary sacrifice provides a creative way to enhance the total remuneration package in the eyes of the employee at no additional cost to the employer and as a tax-efficient scheme for the employee, saving them both money.
For more on salary sacrifice, check out the Fleet News fleet funding section.