As the Chancellor of the Exchequer in his autumn statement announces plans to remove the existing salary sacrifice car scheme, local vehicle finance specialists Affinity Leasing explains what this means to those responsible for existing salary sacrifice car schemes, and businesses thinking of pursuing this employee benefit.
Wyre Forest based local employer Affinity Leasing Director, Michelle Howles, explained: “This announcement may cause concern to those responsible for existing salary sacrifice car schemes or those thinking of offering this benefit to their staff.
“For businesses of all sizes, anyone with a staff salary sacrifice car scheme in place is now able to move it and they no longer be restricted or tied due to previous scheme constraints.”
Earlier this year, HM Revenue and Customs (HMRC) published a consultation paper looking at the salary sacrifice and flexible benefits available, such as cash alternatives in lieu of taking a company car. Today’s Government announcement is aimed at addressing the rising costs and Income Tax and National Insurance contributions payable on such schemes.
Affinity Leasing is supporting employers who currently offer salary sacrifice schemes to switch to an alternative scheme, offering brand new vehicles on personal lease terms and finance as a voluntary benefit, which has no Benefit In Kind tax payable. Industry leaders in car leasing, Affinity Leasing service if free of charge and has over the past 12 years provided thousands of cars via their scheme which is an alternative to salary sacrifice or can be offered as a voluntary benefit to all employees, partnering with leading vehicle manufacturers and funders to match individual need.
Mrs Howles added: “Unlike many salary sacrifice car schemes, Affinity Leasing’s scheme is free for companies to join and offers brand new vehicles, often with large discounts, to members of voluntary benefit schemes. For those responsible for salary sacrifice car schemes already, our scheme is quick and easy to set up, has minimum administration and can supply a wide variety of makes and models to suit the needs of the driver without needing to be restricted by the CO2 emissions of the vehicle or the cost to the driver of BIK tax.”
Further scheme information is available by contacting Michelle Howles on 01299 269521 or emailing: Michelle.Howles@affinityvehicleleasing.com
Image: Wyre Forest based local employer Affinity Leasing Director, Michelle Howles.
Company details: Affinity Leasing Ltd. T: 0800 0607070 www.affinityvehicleleasing.com