Your team can lease a brand new fully insured Electric or Plug-In Hybrid vehicle with no upfront cost, whilst saving up to 40% in tax.
Salary Sacrifice allows an employee to sacrifice part of their gross monthly salary in exchange for a fully maintained Electric or Plug-In Hybrid Vehicle.
What happens at the end of a Salary Sacrifice scheme?
At the end of the contact term, Yorkshire Fleet will arrange for the vehicle to be collected, either from the company or employee address. As part of this collection process, the vehicle will be appraised, and any excess mileage or damage which falls outside of the published fair wear and tear guide will be charged back to the employer (and may then be subsequently re-charged to the employee, which would be detailed in the terms of the agreement).
What happens if the driver of the vehicle leaves the company?
The employee returns the car to their employer, and they are free to either re-allocate the vehicle to another employee under a new Salary Sacrifice arrangement, or return the car to the finance company. It is possible to include Early Termination insurance as part of your scheme, which significantly reduces the finaicial exposure of the company in the event of the employee leaving the company.
Does the Employee need to be in full-time employment to be eligible for the Salary Sacrifice scheme?
No, they do not need to be on a full-time contract, however in order to be eligible for the scheme, the reduction in salary can’t take them below the National Living Wage.
What happens if the Employee changes their mind or leaves the company prior to taking delivery of the vehicle?
It is possible to cancel the vehicle order prior to taking delivery, and in most cases, this would incur a cancellation charge, which would be a maximum of £500 + VAT.
What are the typical lead times from the point of order?
If we are able to source a suitable vehicle from UK stock, a lead time of 10 – 14 days is usually achievable. If we need to place a new factory order built to your specification and colour, lead times can vary from 2-3 months to over 12 months, depending on the make and model. We use a wide network of suppliers throughout the UK, so if there is a rare vehicle out there, we can usually locate it!
Is there a minimum number of employees who need to commit to the scheme?
No, there is no minimum uptake. Some companies set up the scheme purely for the benefit of one Director or Employee.
What length of contract is required / possible on the scheme?
Contract terms can run from 2 to 4 years. Generally speaking, the longer the term of the contract, the lower the cost of the monthly rentals, and typically 3 or 4 year contracts are the most popular and offer the best value for money.
How are the rentals collected?
The rentals are collected vie Direct Debit directly from the Company, and the appropriate amount is deducted from the Employees salary through the regular payroll process. The Employer is provided with a report detailing all of the required information for payroll.
How long are quotes valid for, and do they vary over time?
Quotes are usually valid for 28 days, although sometimes this may reduce due to factors outside of our control, for example if a manufacturer has a price increase, or if there is a rise in interest rates. Prices fluctuate over time due to a multitude of different factors, such as interest rates, changes in fleet discount terms, manufacturer price increases, changes in residual values and variations in insurance charges.
Can an Employee have more than one vehicle on the Salary Sacrifice scheme?
Yes, provided that the total deduction from their salary does not take them below the National Living Wage.
Can the company restrict the scheme to Electric Vehicles (EVs) only?
Yes, we would discuss the bespoke requirements of the scheme during the initial consultation, and it is easy to restrict the scheme to Electric Vehicles.
It is possible to get a similar deal by visiting a franchised main dealership?
No, Salary Sacrifice and the associated fleet discount terms and tax savings are not accessible through the main dealer network.
What is the initial setup cost of a Salary Sacrifice Scheme to the Employer?
There are no initial setup costs when setting up a scheme with Yorkshire Fleet.
How can I set up a Salary Sacrifice Scheme through my company?
Setting up a new Salary Sacrifice scheme with Yorkshire Fleet is quick and easy, with no initial setup fees, so call the team on 01653 604300 to arrange an initial consultation, and we will tailor a bespoke scheme to suit your requirements.
What is included in a Salary Sacrifice scheme?
The scheme provides the employee with a fully insured Electric Vehicle, including full servicing, maintenance, replacement tyres, road tax and roadside assistance for the duration of the contract. It is also possible to include Early Termination insurance to limit the Employers exposure if the Employee leaves the business.
What is a Salary Sacrifice Scheme?
A Salary Sacrifice car scheme is a tax efficient non-cash benefit, whereby an employee sacrifices part of their gross salary in exchange for a fully maintained Electric Vehcle (EV). As the deduction is taken from their gross salary, it reduces their income tax and national insurance contributions.
