We won’t bore you too much with the nitty-gritty of Salary Sacrifice, you’ve arrived here for a reason! But we can’t resist in selling you a few of the benefits. But are you:
How does Salary Sacrifice work?
Salary Sacrifice is a great way for businesses to offer an incentive to their employees and on the flip side as an employee it allows you to run a car whilst saving money on National Insurance/Tax.
A change in employment contracts will be required and both parties need to agree to the terms of the agreement.
It is also important to remember that you can reduce an employees salary to less than the National Minimum Wage (NMW) rates.
Benefits to the Employer?
Show your employees your appriciation by offering a great way of funding a car through Salary Sacrifice. This is an ideal way and takes away the liabilities of a company car scheme or a company car allowance.
It also removes the issues surrounding Grey Fleets!
Our Salary Sacrifice scheme is free to join and very simple to maintain, we provide an Account Manager with one port of call. Direct number and an email address for you and you employees.
Pro's of Salary Sacrifice
Benefits to the Employee?
Let’s start with the saving of Tax and National Insurance, whilst being able to drive some of the latest cars from top brands such as Audi, BMW, Mercedes, Land Rover and Volkswagen.
Many cars come with maintenance included and you don’t have to worry about road tax or breakdown assistance, as this is all included.
Many of our services are flexible, so you can swap and change cars on a regular basis and depending on your employment contract.
Frequently Asked Questions
To set-up a Salary Sacrifice Scheme with Cocoon Vehicles you can speak to a member of the team on 01332 290173 or use the ENQUIRY FORM below.
At some point if you wanted to proceed with the service, we would require the company to set-up a credit line with ourselves. This can be done online and takes just 5 minutes to complete.
Our experienced underwriters will then take documents from yourself for compliance and Anti-Money laundering (AML).
If you need to know what you need to cover with HMRC, more information can be found here: HMRC Salary Sacrifice Advice
No, Cocoon Vehicles do not charge for joining our Salary Sacrifice programs. Each vehicle will have different fee’s and terms depending on the make/model/duration/mileage.
You may have some additional administration time, as you will need to alter employment contracts and organise for your employee to take a reduction in their wages.
Your accounts team may also need to reconcile payments and invoices from our system.
We do try and help where we can and if you have more than 10 cars, we can put all the rentals on one invoice to save time and money.
All of the vehicles on our short-term programs are available on the Salary Sacrifice team. We offer both flexible and fixed short-term car leases.
It is up to you what you want to offer your employees, with most businesses opting for our flexible car subscriptions and leases.
By paying your employee less salary in exchange for a car, you’ll save in National Insurance contributions. On top of that you may also “save” your employee from going elsewhere to a company that does offer incentives such as cars on Salary Sacrifice.
A Salary Sacrifice scheme is a benefit for both the employer and the employee.
It allows the employee to take out a flexible vehicle and allows them to pay for the car out of their gross monthly pay by “sacrificing” an amount of money. In turn this saves the employee both National Insurance and Tax.
As the employer you offering an incentive to your employees to run a vehicle without the faff of a company car scheme or company car allowance. It also saves the headaches of running a grey fleet. On top of this, your business will also save National Insurance contributions for that employee.
Reducing the impact you’re having on the environment has never been so important! That’s why we’re encouraging the adoption of electric vehicles for your employees.
By utilising our flexible car subscriptions, your employees can test out the latest models without any long term commitment. We offer these on both our fixed and flexible short-term solutions.