Fleet News

Arnold Clark Vehicle Management launches car salary sacrifice scheme

Arnold Clark Vehicle Management is hoping to tap into a growing interest by employers to offer a new car through salary sacrifice by launching its own scheme.  

The Arnold Clark Salary Sacrifice Car Scheme includes cars from a range of manufacturers, with full vehicle maintenance, comprehensive insurance, tyre service and 24-hour breakdown cover included.   

David Cooper, managing director of Arnold Clark Vehicle Management, said: “We're extremely proud to introduce the Arnold Clark Salary Sacrifice Car Scheme to businesses and offer our support to them going forward.    

"It's a great opportunity for employers and employees to enjoy huge savings and benefits every month.”   

There has been a resurgence in salary sacrifice for cars since the Government overhauled the benefit-in-kind (BIK) tax bands, introducing a 0% percentage rate for pure electric vehicles (EVs) for 2020/21. It currently stands at 1% and will stay low, at 2%, up to April 2025.

Earlier this month, Fleet Alliance launched a new salary sacrifice scheme with focus on offering zero-emission cars to SMEs. 

Martin Brown, managing director of Fleet Alliance, said now was the “perfect time” to launch such a scheme as it takes “maximum advantage” of the prevailing tax regimes and the growing movement to electrification.

According to the 2021 Arval Mobility Observatory Barometer, low tax rates on EVs has resulted in an increase – now 53% compared to 39% in 2020 - in employers offering salary sacrifice to non-company car drivers.

Shaun Sadlier, head of Arval Mobility Observatory in the UK, believes that interest in salary sacrifice could accelerate further in the coming years. 

“What we are seeing emerging is a definite future mobility role for EV-based salary sacrifice as a key element in a wave of new benefit initiatives that are designed to bring innovative options and ideas into play for employees, with only a very limited investment required by their employer,” he said.

Read more about the growth in salary sacrifice in the August edition of Fleet News.

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