Under the terms of the scheme, CHCP CIC staff will be able to select cars with a CO2 cap of up to 150g/km in return for surrendering a proportion of their salary through Tusker’s SalarySacrifice4Cars (SS4C) scheme.

However, questions still remain about the true scale of the market and fleet decision makers’ organisation ACFO is aiming to find out the answers.

ACFO chairman Julie Jenner said: “Most fleet management service providers now offer some form of these schemes. What is much less clear is the actual impact these schemes have had – or are likely to have – on the shape and size of the UK market.

“There are as yet no clear definitions for market analysis or tax base, so there is no picture of just how far these schemes have changed the market. ACFO, therefore, is seeking to measure these aspects.”

To do this, it has launched an online survey which is accessible at www.acfo.org and open to all fleet operators.

Tax compliance is crucial

Fleets are again being urged to make sure salary sacrifice arrangements are compliant with Government tax rules.

The warning comes in the wake of specialist recruiter Reed losing a £158 million battle with the taxman over footing the travel and subsistence bills of temporary job candidates.

They were meant to be part of a salary sacrifice arrangement, but a tribunal found that the papers put in place with the employees did not amount to a change of contract and therefore that PAYE and Class 1 National Insurance should arise on the gross salary (pre- sacrifice).

Alastair Kendrick, tax director at MHA MacIntyre Hudson, said: “It is an important reminder
that those entering into salary sacrifice schemes need to ensure there is a change in the employees contractual rights to earnings.

“We see schemes introduced without tax sign off and given HMRC’s reluctance to give prior agreement this leaves employers exposed.”