Help your employees cut their transport costs and minimize their impact on the environment with a fully-maintained and insured ‘green’ car with low emissions, paid for through salary sacrifice. Staff can make significant tax and National Insurance savings and spread the cost of a green car over a fixed period, usually three years.
What is green car salary sacrifice scheme?
Greencarsave is a salary sacrifice scheme that enables employers to offer employees a cost effective and tax efficient way to have a fully insured and maintained car with lower emissions. Employees save tax and NI on the salary they swap over a number of months for a ‘Green’ car, which includes many popular brands, and employers save Employer NI too.
Employees pay tax on the Benefit in Kind which arises from using the car but it is much lower for cars with low emissions than for regular cars i.e. cars emitting less than 140g of CO2 per kilometre. The employee tax and NI savings far outweigh the Benefit in Kind tax incurred as employees can save between 32% and 47% on the cost of a car, depending on their tax rate.
Since 2008 more and more organisations are providing this valuable employee benefit when it became more tax effective for employers to offer their employees the opportunity to run a ‘Green’ car. Greencarsave may be offered to all employees provided that the salary sacrificed does not reduce the remaining pay to below the National Minimum Wage (NMW).
All cars are provided with motor insurance, service and maintenance, accident management, European breakdown cover and replacement cars. Early Termination Protection is an optional extra for employers in case of resignation or redundancy which could result in early termination of the salary sacrifice contract.
Benefits for Employees
- Tax and NI savings (average saving of £80 a month)
- Worry free, fixed cost motoring
- Brand new car
- Fully comprehensive insurance, service and maintenance included
- Easy to use on-line system for quotes and information
- Helpline for all vehicle queries
Benefits for Employers
- Savings of up to £300 per year per employee in employer NI
- Provides a valuable benefit giving employee tax and NI savings
- Helps to retains and attract employees
- Promotes environmentally friendly image
- Helps meet Government’s low emissions targets
How does Greencarsave work?
We will set up a fully-customised online Greencarsave portal through which the scheme is delivered to employees. There are also online leaflets that explain what the salary sacrifice car scheme is and how it works. The Greencarsave portal contains a fully integrated online/telephone salary sacrifice election system and provides instructions to employees on how to sign up for the scheme.
The selection of cars is administered via an award-winning online car quotation, ordering and reporting system. The streamlined system is fully automated to reduce any administrative burden and paperwork. Illustrations of tax and NI savings are provided to employees via the touch of a button.