Keeping staff happy and resolving disputes is part of the job description, right? But here’s one way to deliver an instant hit.
Electric car salary sacrifice.
That’s right, offer your staff the benefit of an electric car at an equivalent cost that’s far below what they would have to pay personally.
What’s not to like? It will certainly win you friends among your employees.
Like most salary sacrifice programmes, staff pay for the car’s monthly rental out of gross salary before tax and National Insurance is deducted.
All car insurance and car maintenance is included in the rental – so it’s absolutely no-hassle motoring for your staff.
It’s a benefit, of course, so there is benefit in kind tax to pay – but electric cars currently attract only 2% benefit in kind taxation. For a MINI Cooper Electric that’s as little as £10 per month.
The tax and NI advantages easily outweigh the benefit in kind tax, offering your employees – and potential staff – a really valuable benefit.
It’s far cheaper than your staff leasing the same car personally. Let us demonstrate the point:
Gross salary sacrifice: £804.71
Income tax saved: -£321.88
NIC saved: -£16.09
BiK tax: £35.44
Monthly net salary sacrifice: £502.17
Rental: £803.76
Maintenance: £21.52
Insurance: £50.00
Monthly cost: £875.28
*Based on a 3+33 profile, 5,000 miles per annum
See what we mean? Over the three year term, salary sacrifice could save your employee a whopping £13,432. Now that’s what we call a staff benefit.
The only question now is: when will you start offering your staff salary sacrifice?
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