How Salary Sacrifice Car Scheme Helps To Have A Clear Air
What Is A Salary Sacrifice Car Scheme?
A salary sacrifice car scheme, or SSCS, is a type of employee benefits package, where staff agree to give up some of their salary in order to receive certain non-cash benefits. In this case, employees are able to get access to a company vehicle without having to pay tax or National Insurance contributions on it. This means that the employee pays less in total and so can effectively save money whilst reducing their environmental impact. The SSCS also offers further savings by allowing the employer to avoid paying tax or National Insurance on any contribution they make towards purchasing and running costs associated with the vehicle.
Benefits Of Salary Sacrifice Car Schemes
Perhaps the most obvious benefit of an SSCS is that it helps employees cut down on their CO2 emissions by enabling them to switch from petrol/diesel cars – which create high levels of pollution – to more sustainable vehicles such as electric cars or hybrids. These vehicles produce significantly lower levels of harmful emissions and can therefore help reduce our dependence on fossil fuels for generating electricity. Not only does this have positive implications for our environment, but it also contributes towards improved air quality in our towns and cities – making them healthier places in which to live and work.
In addition, SSCSs offer other monetary benefits such as reduced motoring costs due to cheaper fuel bills; tax benefits because National Insurance contributions on company cars are avoided; and potential savings on congestion charges due to many city authorities offering discounts on electric vehicles within certain geographic zones (e.g., London’s Ultra Low Emission Zone).
Moreover, salary sacrifice car schemes can help employers attract and retain talented staff as they are seen to be demonstrating their commitment to social responsibility. This not only helps them to attract the best talent, but can also positively strengthen their corporate image and promote positive word of mouth amongst their workforce – making them a more attractive employer.
How Can I Apply For A Salary Sacrifice Car Scheme?
If you’re an employee who is interested in taking advantage of a salary sacrifice car scheme, then the first step is to speak with your company’s HR department. They will be able to advise you on any applicable schemes and walk you through the necessary steps for applying. This usually involves filling out a form detailing your current salary and the amount you are willing to sacrifice in order to receive the company car. Once approved, you will be able to access your vehicle and start taking advantage of the benefits it has to offer.
What Types Of Car Are Available?
This will vary depening on the type of scheme and your employer, but generally speaking electric vehicles, hybrids and certain low-emission petrol/diesel cars will be available. You should speak with your HR department to find out what specific makes and models are offered by the scheme. This will enable you to make an informed decision based on your individual needs and budget.
The Future Of Green Travel
Looking ahead, we expect more employers will be taking advantage of SSCSs in order to support their corporate green travel initiatives – especially with governments introducing policies aimed at encouraging people away from petrol/diesel vehicles towards greener alternatives. For example, London’s Ultra Low Emission Zone project has been designed to create incentives for drivers making use of greener transportation solutions – including electric cars – around key areas of the city centre during peak times (7am-10am & 4pm-7pm). By doing so, it hopes its incentives will persuade people out of their Polluting diesel cars and into more eco-friendly modes of transport such as public transport or ultra-low emission vehicles (ULEV).
Overall then, there are numerous advantages that businesses can get from adopting a salary sacrifice car scheme policy when providing company cars for staff. Not only will it benefit both employees and employers financially but also assist with efforts towards reducing our dependence on fossil fuels and combating climate change through cleaner air quality across our towns and cities. We hope that this blog has been helpful in providing information about SSCSs and what advantages they can offer your business. Salary sacrifice is an exciting way to help your business save money and become more environmentally friendly.