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Are you ready to introduce SalaryExchange to your employees?
Salary sacrifice schemes are a great way to boost a company's green credentials, building a fleet of clean electric vehicles to replace traditional internal combustion engine models. Introducing a salary sacrifice scheme could help employers to improve their employee packages in a fast-moving environment where recruiting and retaining top talent is very competitive.
So what is Salary Sacrifice?
Get to know the basics:
Salary sacrifice is a contractual arrangement that allows an employee to exchange a portion of their Specific Gross Salary in return for benefits of a similar financial value. Essentially, their take-home pay is reduced, but this is balanced by the multiple advantages of opting in. At the employer’s discretion, all or part of the National Insurance (NI) savings made through a salary sacrifice scheme can be shared with the employee.
Salary sacrifice is suitable for any type and size of business. The days of taking a job with a big employer being the only way to access a salary sacrifice car are over. For the employer, a salary sacrifice vehicle lease scheme is a cost neutral option for those who want to offer their employees a car. They can bring significant advantages to most organisations – read our article to find out more the advantages of salary sacrifice.
Who should set up a scheme?
To begin with, here are a few things to consider about setting up your own scheme. Answering these questions will help us to work with you to design a scheme that fits all of your objectives and determine which limitations and risk management policies you should include:
What are your objectives e.g. savings, employee benefits, decarbonising your business?
Who in your workforce will have access to leased vehicles?
Have you drafted a policy defining what vehicles/ models employees can select?
Does the fleet you’re proposing fit into your environmental/ emissions targets?
Will promotion of lower emission vehicles be part of your discussions with employees?
Have you considered how you’ll deal with employees leaving part-way through a lease
Why schemes are so popular
Salary sacrifice vs. Company car
Salary sacrifice and company car schemes often get confused. It’s crucial that you understand the difference between them so you can offer a salary sacrifice scheme with confidence.
A traditional company car scheme is often available only to specific sections of the workforce. This is usually people whose role requires extensive travel, or higher earners. With salary sacrifice all costs are covered by the employee, removing the barrier of cost viability and requirement to undertake business travel.
Meanwhile, a salary sacrifice vehicle is used as a private car but schemes allow more employees to become eligible to take part. Individuals lease the vehicle for a stated contract period.
Salary sacrifice vs. Other finance options
Car finance schemes such as personal contract purchase and hire purchase don’t offer the same tax benefits as salary sacrifice schemes. This is because employees remain responsible for paying income tax and NI on their salary, even if they’re making monthly payments towards a car. What's more the need to save up a large deposit is removed with a salary sacrifice product putting the employee in control of configuring their contract through an easy to use quotations portal.
With SalaryExchange, Athlon’s low emission salary sacrifice car scheme, employees can reduce their income tax and NI liabilities, and potentially reduce monthly motoring costs.
Generally, employees can expect to save between 20% and 30% on the cost of a car, compared to other forms of financing.
SalaryExchange benefits
A better deal for wheels
Businesses often get a good fleet deal from manufacturers or their networks. As the price benefit is passed on to the employee, leasing a vehicle from their employer can be cheaper than buying a car from a dealership.
No hidden costs
Unlike buying or leasing a car privately, salary sacrifice vehicle packages tend to include additional items of expenditure: road tax, breakdown cover, servicing and even insurance in one easy monthly payment so there should be no nasty financial surprises along the way.
Pay nothing up front
Company salary sacrifice cars don’t require a deposit from the employee or incur an admin fee. This means they can save money, additional admin and time compared to taking out a normal car finance package.
Cash positive
Employees cut the cost of a new car
Recruitment
Attracts new talent to your team
Retention
Enhanced incentives increase loyalty
Greener business
Meeting demand for lower-emission cars
Safer mobility
Grey fleet risks cut, for better road safety
Less hassle
Removes additional admin for fleet
managers
What makes Athlon's SalaryExchange unique?
Listen to our Head of Sales Support, Richard Dainty as he highlights how Athlon differs from other providers with our personal touch.
Our consultative approach works alongside our salary sacrifice scheme to ensure our solution suits your organisation and employees so you can reap the benefits.
Already an Athlon Salary Exchange customer?
Use this link to continue through to the Athlon SalaryExchange portal.
Why partner with Athlon for your salary sacrifice scheme?
To ensure we offer a market-leading programme we first completed a rigorous partner selection process. At the end of the tender process, we chose Knowles Associates as our salary sacrifice partner. Combining Knowles' expertise and experience in salary sacrifice with our heritage of customer focused consultation.
With Athlon SalaryExchange you can expect us to:
- Support all of your employees in making a choice, and throughout the contractual process
- Calculate and provide quotes for your organisation and participating employees
- From the click of the mouse to the turning of the key, we support drivers through the ordering and delivery process
- We take a proactive approach, providing weekly delivery updates to employees
- Inform your business and workforce about expected lead times
So, is Athlon SalaryExchange for you?
If we’ve convinced you to get Athlon on board for your salary sacrifice car scheme, book a meeting and speak to one of our fleet experts.