Salary Sacrifice
The concept of salary sacrifice is not new and can be defined as an arrangement where a private individual agrees to forego part of their future salary or wages in return for their employer providing benefits of a similar value. Recent examples are child care costs and bikes for work.
The advent of low C02 emission cars has made the concept of salary sacrifice for cars financially appealing. By giving up part of their salary in exchange for a benefit, in this case, a company car, employees can save income tax and national insurance contributions by having the cost of the car deducted from their salary before the statutory deductions. The employee is liable to pay benefit in kind tax on the company car but the savings made on PAYE income tax and NIC in many cases is greater, affording an attractive net saving. As far as the employer is concerned such schemes are generally cost neutral as the full cost of the car is met by the employee.
There is however a great deal of "red tape" involved in starting a bona-fide car salary sacrifice scheme and JCT600 Contracts has invested heavily in setting up a scheme that is both transparent and compliant with current legislation. Please click on the PDF's below to see some examples of potential savings.
 | JCT600 Salary Sacrifce Fact Sheet |
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If you are interested in learning more about our scheme please email us on the link below.
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