ACCOUNTANTS and tax advisers, UNW, has teamed up with Benfield Motor Group, to launch a tax efficient car benefit scheme.
Flexicar allows employees to make savings equivalent to an 11 per cent pay rise, at the same time as potentially saving the employer money, the companies claim.
The salary sacrifice service provides tax efficiency for employees with other benefits in one monthly payment. Salary sacrifice schemes have been around for many years and typically include childcare vouchers, cycle to work and pension contributions. To date, salary sacrifice car schemes have been more widely operated in larger businesses but Benfield and UNW are offering this scheme to all businesses in both the public and private sectors, irrespective of the number of staff on the pay roll.
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UNW’s employment taxes partner, Lee Muter, said: “At a time when most private sector organisations are finding it particularly difficult to give salary increases, this is a tremendous hook to both attract and retain staff.
“I have been working closely with Carl Moffett, Benfield's contract motoring general manager, over the last year to design what is essentially a turnkey solution for employers. This is a cost efficient salary sacrifice scheme for businesses and staff – a real win-win situation which is ideal for those who do not currently get a company car or cash allowance. For this reason, we expect the scheme to be highly popular.”
On average, the scheme takes two to three months to implement, depending on the size of business. UNW and Benfield offer full project management and can assist employees in disposing current vehicles if required.