Fleet Logistics Launches FleetBENEFIT Salary Sacrifice Scheme

Euro­pean fleet man­age­ment spe­cial­ist, Fleet Logis­tics Inter­na­tion­al, has launched a new salary sac­ri­fice car scheme in the UK, cal­cu­lat­ed to be 10% cheap­er than con­ven­tion­al schemes as mul­ti-bid­ding is applied to every new car via a pan­el of fun­ders to find the most attrac­tive rate for the dri­ver.

“Salary sac­ri­fice car schemes give fleet leas­ing com­pa­nies access to staff in large cor­po­ra­tions who would not nor­mal­ly qual­i­fy for a com­pa­ny car but who are, through their firm’s flex­i­ble ben­e­fits sys­tem, able to sur­ren­der a cer­tain por­tion of their month­ly salary in return for a ben­e­fit – in this case a brand new car, although it could also be addi­tion­al pen­sion, health­care, child­care vouch­ers – any­thing that a firm makes avail­able as a ben­e­fit for its employ­ees,” said Stu­art Don­nel­ly, Chief Region­al Offi­cer for North­ern Europe at Fleet Logis­tics.

“On the por­tion of salary sac­ri­ficed each month, there is no Income Tax or UK Nation­al Insur­ance Con­tri­bu­tion to pay for the employ­ee, which is a major sav­ing. There is a Ben­e­fit in Kind tax charge to pay on the car but that is linked to its CO2 emis­sions.

“There­fore employ­ees tend to select cars with as low CO2 as pos­si­ble to keep their tax bills as small as pos­si­ble, so that salary sac­ri­fice car schemes nat­u­ral­ly pro­mote low­er emit­ting, green­er, more envi­ron­men­tal­ly friend­ly cars. With the moves that OEMs are mak­ing to low­er CO2 in Europe, more and more cars are avail­able with CO2 of 99–120g/km – the typ­i­cal lev­els of vehi­cles select­ed on these schemes. You can now get a BMW 3 Series with a CO2 read­ing of 109g/km, for exam­ple which shows the strides the OEMs have made,” said Don­nel­ly.

Thought to be the first of its kind to be struc­tured this way and to be intro­duced by a fleet man­age­ment provider rather than a leas­ing com­pa­ny, the new scheme, called Fleet­BEN­E­FIT, is open to any sized orga­ni­za­tion, although research sug­gests that the opti­mal size is a min­i­mum of 500 employ­ees.

Employ­ees can research, iden­ti­fy, source and order their new vehi­cle online through Fleet Logis­tics’ Fleet.Wizard car con­fig­u­ra­tor, and ben­e­fit from high­ly attrac­tive rates sup­plied by a pan­el of fun­ders.

Using Fleet Logis­tics’ mul­ti-bid­ding solu­tion, which has been shown to reduce acqui­si­tion costs by 8–10%, the most attrac­tive price is select­ed for the employ­ee from the prices sup­plied by the pan­el. Any sav­ings gen­er­at­ed in this way, can then be allo­cat­ed to a fund to cov­er any future con­tin­gen­cies, such as res­ig­na­tion, redun­dan­cy or mater­ni­ty leave.

Tags:


0 Comments

    Leave a Reply

    Your email address will not be published. Required field are marked *.