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Benefit-in-Kind is a tax on a non-salary perk, which in this case would be a company car. As the car is a benefit for your employees, they’ll need to pay the Benefit-in-Kind tax. Every car has a calculated BIK percentage. By choosing an electric or hybrid vehicle, you can reduce your BIK tax payment via tax relief. For 2023 the amount of tax relief for a full electric vehicle is 2%.
There is no deposit to pay with the Pink Salary Exchange salary sacrifice car scheme.
There is no credit check required, giving you peace of mind that you can apply quickly and easily.
In reality, any of your employees can join and benefit from the scheme, which is why it is a great way to promote fair treatment and inclusivity. The only rule is that the salary exchange amount does not take an employee below the minimum wage threshold. However, we do suggest putting in place some simple rules. For example, for insurance purposes an applicant must be over 18 and have a full, valid driving licence otherwise they may be refused insurance cover and therefore become unauthorised to join the scheme. For the same reason, a poor driving history with an applicant incurring fines and penalty points may cause a problem with an applicant’s eligibility. But after this everyone is welcome to join the scheme.
Pink Salary Exchange is fully managed by us. We take care of every aspect of your policy for peace of mind and to make the process as hassle-free as possible. Of course, there will be some elements of employer administration required, such as keeping track of driver exchanges and invoices, but we will handle everything else. You can also monitor all of the activity on the scheme via the online management portal.
The basic principle is a simple one. The employee chooses a car to be provided by the employer as part of their employment package. The employee then ‘sacrifices’ part of their salary to fund the vehicle. This means that they can benefit from a fully managed company vehicle at a very cost-efficient price which includes everything but fuel. And because the vehicles we offer are electric vehicles, this qualifies for the salary sacrifice portion to be taken from the employee’s salary pre-tax. This means that the employee is paying less income tax and national insurance, and hence receives a take-home pay cash benefit as well. The employee also benefits by having only one payment to cover all their motoring costs (apart from electrical charging) and can agree a flexible package in terms of lease term and mileage restrictions.
The employee has a vast range of vehicles to choose from, and because we have long-established partnerships with the best vehicle manufacturers, we can bring you exclusive and best-available deals on all the major brands. Because the scheme is available to all employees in a business, this does not restrict the applicant to traditional ‘company cars’, ie. top executive vehicles like luxury saloons. The employee can choose a small, compact city car, or a hatchback, or an estate, or a family SUV, or a truck or a van. We have a huge range of electric vehicles to choose from so there will definitely be something to suit your budget, lifestyle and motoring desires.
You pay one monthly fee with your salary sacrifice amount, and this covers your lease cost, service & maintenance and insurance. And because the vehicle is electric it is exempt from road tax, so the one monthly fee makes motoring cheaper and much easier to plan and budget for.
Yes, our leasing deals can range from as little as six months up to a maximum of 48 months. So you can choose the lease term that best suits your budget and your personal circumstances.
Yes, you can make the lease term shorter or longer if your circumstances change, and you can also change the amount that you pay each month. So if your financial position changes (you get into debt, your partner loses their job or they leave work on maternity/paternity leave) you can negotiate to change the monthly fee, although you are still liable for the same lease cost and hence the lease term will simply become longer to cover the same total amount.
Yes, there is no discrimination at all and any employee of the company at any level can apply to join the salary sacrifice car scheme.
Yes, because your salary amount is changing, it is required to amend your terms of employment in accordance with the provisions of Section 4 of the Employment Rights Act 1996. When you sign-up to the scheme you are effectively signing an agreement to amend these terms and conditions, so it is a simple and straightforward process.
No, we understand that things change and people leave their jobs frequently, and often at short notice, so we reflect this by providing an early termination service whereby you can end the lease agreement early, and you will not be liable for the ongoing cost of the lease. Of course you would also need to return the vehicle to your place of work before you leave the company.