Fleet News

Salary sacrifice interest increases

Salary sacrifice car specialist Fleet Evolution reports that it has seen a “remarkable” upsurge in business in the last two months.

It told Fleet News that an interesting trend is developing as employees falling within the income bracket affected by forthcoming benefit changes take swift action to minimise any impact.

Director Andrew Leech said: “We are used to our customers’ orders peaking for new registration deliveries, but this recent surge of orders for cars to be delivered in January came as a surprise, until that is we identified some key trends.

“A large number of customers employees are ordering vehicles for January delivery to lower their earnings to a post sacrifice level, a level where they will be able to retain or partially retain key benefits such as child benefit in the coming year especially when salary sacrifice cars were combined with other forms of sacrifice arrangement.”

Fleet Evolution expects the trend to continue as it says that salary sacrifice cars already give savings of around a third to employees on motoring costs, but when this is combined with other financial advantages that can be achieved by lowering salary the benefits, they can be even greater.
 


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Comments

  • Alastair Kendrick - 06/12/2012 13:12

    I found this article to be confusing to be clear when calculating entitlement to full child benefit all income is taken into account including benefit in kind. So yes the salary will reduce the earnings but you will have to add in the taxable benefit on the car. To help employees there is a calculator on the HMRC website

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