Salary sacrifice schemes for cars have attracted increased levels of interest from fleets and the media over the past couple of years. Such schemes have the potential to deliver cost savings to organisations, and offer a cost-effective benefit to employees.
In our experience of working with fleets we have found that organisations are familiar with how generic salary sacrifice schemes work. However, salary sacrifice for cars is less well understood, and typically organisations underestimate what is involved and the areas of potential risk.
This publication gives an overview of salary sacrifice schemes, and sets out the areas you need to consider before implementing a scheme. It is not intended to constitute financial or other professional advice and you should always consult your professional advisors regarding tax and associated matters.