Microlease, a worldwide supplier of equipment to the telecommunications, aerospace and defence industries, is introducing salary sacrifice from Pendragon Contracts, the contract hire division of motor group Pendragon.
The adoption of the scheme enables Microlease to enhance its benefits programme and provide savings of around 30% for its employees while achieving significant National Insurance savings. It also allows the company to address CO2 emissions and contribute towards meeting its duty of care obligations.
The scheme involves employees at its two locations in Harrow and Coventry. They can sacrifice part of their salary before tax and NI, 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.
Paul Smith, finance director, Microlease, says: “The salary sacrifice scheme greatly enhances our employee benefits programme and provides significant advantages to both our staff and the organisation.
“We selected the salary sacrifice scheme offered by Pendragon Contracts because of its customer focused service and one-stop-shop approach, which addresses all aspects from implementation to servicing. We’ve been very impressed.”
Neal Francis, managing director of Pendragon Contracts, says: “Our salary sacrifice scheme aims to be totally risk and admin free for organisations and provides a bespoke, flexible solution for the market. We were able to tailor our service to Microlease’s requirements to ensure its employees benefit from a cost-effective approach. Being part of the UK’s largest motor group gives us ready access to any stock vehicles that may be available, helping to reduce lead times.”