FTSE-listed company expects up to 3% take-up among
staff
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Motor lenders have reported an upsurge in
new business after launching a series of salary schemes.
Tusker, a fleet management and leasing company,
told Motor Finance last month that it had recently won
salary sacrifice contracts with FTSE-listed company, Ultra
Electronics, and also with Subsea 7, a sub-sea engineering and
construction company.
LeasePlan UK also said that its salary sacrifice
scheme, which it launched in March, had already attracted
considerable interest from customers.
Under such schemes, employees give up the right to
part of their cash remuneration in return for a car.
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By GlobalDataThey also benefit from national insurance schemes,
income tax savings, and use of less polluting vehicles.
Subsea has already signed 40 new car orders since
it signed the sacrifice deal with Tusker. In total, it expects
between 2% and 3% of its employees to take up the scheme.
Ultra Electronics and Subsea each have 1,800
employees, and the sacrifice scheme is available to all of
them.
Customers of salary sacrifice schemes can decide
the level of carbon emissions their leased vehicles make. Ultra
Electronics, for instance, has set a limit of 150g/km in terms of
CO2 emissions, while Subsea 7 put the limit at
160g/km.
According to a study by Tusker, the average
CO2 for cars under its SalarySacrifice4Cars (SS4C)
scheme to date has been much lower – 119.6g/km, compared to those
on the contract hire fleet which have chosen vehicles with an
average 149.5g/km.
Tusker’s managing director, David Hosking, said:
“What these new figures demonstrate is that when employees are
parting with their own cash, they select vehicles that are more
fuel and tax efficient, with lower carbon emissions, lower fuel
costs and lower insurance rates.”
LeasePlan UK’s commercial director, Matt Dyer,
expects the bulk of interest from his company’s scheme will arise
from public sector organisations and those companies with green and
tax savings issues at the top of their agendas.
“The potential tax savings for the employees and
their employers are significant, and it could prove a very
effective way of getting employees out of their own, often older,
high-emissions vehicles and into new low-emission cars,” he
said.
“A well-run salary sacrifice scheme also has
the capability to tackle the often-concerning issue for companies
and organisations of the grey fleet.”
