MiSalarySacrifice from Ogilvie Fleet offers an easy way for employees to drive away a brand new, fully insured and maintained vehicle, with one monthly payment through their salary. The Governments recent Finance Bill made some changes to the way the schemes operate, but Richard Jessop, Head of Salary Sacrifice is here to explain some common misconceptions about the changes.
Q1 - ‘salary sacrifice schemes have been scrapped by the Government’
FALSE. All that has changed is the tax treatment. The Government has approved car benefit schemes so it's business as usual.
Q2 - ‘prices go up for all employees’
FALSE. Around half of the salary sacrifice drivers currently in schemes are in cars that would not be affected by the new rules, either because they have opted for a ULEV or because the drivers are already paying more in gross Benefit in Kind (BiK) than the gross salary being sacrificed. For the rest, over a quarter will see an average increase of less than £2.50 per month.
Q3 - ‘there are no longer any financial benefits for employees’
FALSE. There are still huge savings to be made with NI savings and manufacturer discounts.
Q4 - ‘there are no longer any National Insurance savings for employees’
FALSE. NI for employees is NOT affected by the new rules. NI savings remain for all employees.
Q5 - ‘only ULEVs are available through such a scheme’
FALSE. The savings for ULEVs are greater under the new salary sacrifice rules, but drivers can continue to choose any car, make or model with varying savings depending on their own circumstances and the CO2 rating of the vehicle.
Q6 - ‘I can still get a car on a salary sacrifice car scheme’
TRUE. Salary Sacrifice schemes are here to stay and still provide great value and worry free motoring.