Salary sacrifice provider urges HMRC to take ‘golden opportunity’ and push clean cars
Salary sacrifice schemes have been a part of the modern working world for many years, bringing a plethora of benefits to employees and employers in equal measure. However Fleet Evolution, one of the UK’s leading salary sacrifice providers of eco-friendly vehicles, is urging the HMRC to grasp the once in a generation opportunity to secure the future of salary sacrifice schemes by focussing on the incredible benefits to the environment.
Salary sacrifice schemes have been at the forefront of the government’s agenda for years. Well debated and discussed, there are some who champion the schemes, whereas others feel that changes need to be made. This has led to the government sending mixed messages around green motoring. And the latest proposed changes are no exception. The HMRC is putting forward plans to make the greenest cars, such as hybrids and fully electric, no more beneficial under salary sacrifice schemes than a diesel vehicle which emits 110g Co2/km.
Andrew leech, Director of Fleet Evolution, said, “Salary sacrifice schemes have been one of the most popular additions to the working world in recent years. And car schemes are one of the most fruitful. They provide incredible benefits to employers and employees, but also, and importantly for the government, the majority of cars are much more economically-friendly than the ones employees trade in.
“It’s well-documented that personal vehicles are a major cause of global warming. Transport accounts for about one quarter of UK greenhouse gas emissions, affecting air quality at the roadside and beyond. And tackling this issue has been at the forefront of the government’s plans for years. Therefore, by effectively making green vehicles a less attractive option, they could be seriously inhibiting a very simple way of helping to cut down on greenhouses gasses.”
While many companies report an average Co2 of above 100 on their schemes, Fleet Evolution’s average is just 82g. This means that the company has not only earned thousands for the treasury through VAT and BIK payments, but has also cut thousands of grams of Co2 from our customers’ employee base.
“What is missing is a clear message from the government,” added Andrew. “We are urging the government to cap salary sacrifice schemes at 100g Co2 and really get behind ultra-low emission cars by reducing company car tax back to 5% in order to promote uptake in the company car market from both salary sacrifice employees and traditional car drivers.”
The HMRC is reviewing all salary sacrifice schemes at present. Under the new proposals, schemes will continue to provide savings on volume discounts, VAT and lower interest rates, which vehicles will also continue to have no deposit and include everything except fuel. However the tax saving will be removed. This means that whatever tax employers save will potentially be charged as company car tax, not based on CO2, but on tax savings.
Vehicles have been included in salary sacrifice schemes since 2008, and are now one of the most popular schemes out there. They offer incredible benefits to employers, helping to increase staff retention while also boosting employee satisfaction. Fleet Evolution specialise in providing a first-class service to their customers. Dedicated to ensuring everyone benefits from the schemes, they treat their customers, customers like their own, focusing heavily on the ‘personal touches’.
To find out more about Fleet Evolution, visit the website at: www.fleetevolution.com
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Dakota Digital for Fleet Evolution
Contact: Hannah Byrne
Tel UK: 01623 428996
Tel US: 917-720-3025
Fleet Evolution are one of the country’s fastest-growing salary sacrifice car providers, with tax-efficient, low-admin schemes with minimal risk. Fleet Evolution works with businesses with 10 – 15,000 employees, delivering manageable schemes that reward employees and attract talent.