Savvy firms are going greener, keeping their workers happy and driving down company costs, according to Fleet Evolution.

Salary sacrifice schemes for company cars are helping businesses to make costs savings, while also encouraging companies to cut CO2 emissions.

However, Andrew Leech, managing director of Derby-based Fleet Evolution, believes that although the benefits of this form of salary sacrifice have been publicised, the true benefits are not clearly understood.

“The winners are drivers, the company and, notably, the environment,” said Leech.

“For instance, if a driver were to take a typical mid-range car, such as a VW Passat, the company would save more than £1,000 a year in tax and NI, and the employee would make an even greater saving subject to mileage.”

With the cars taxed, based on CO2 emissions, there are huge potential benefits for the environment.

He says that company bosses, who feared that putting these benefit schemes in place would cause real headaches, are discovering switching to salary sacrifice can in fact be hassle-free.

“We find that many companies feel that such an arrangement would be far too complex to set up and police. But the truth is, it’s simple, providing you get the process right, and your partner has the technology to support, and manage the scheme for you. Thanks to companies like ours, businesses are untangling the bureaucracy of salary sacrifice,” said Leech.

Fleet Evolution is offering to implement the scheme for free and giving free initial reviews to all qualifying companies during June.