Leasing and mobility expert, Alphabet (GB), has announced the launch of a new Salary Sacrifice product for its corporate customers. Salary Sacrifice is the latest addition to Alphabet’s contract hire portfolio, providing customers with the flexibility to offer all employees, including those who may not have been previously eligible for a company car, access to a range of new, fully maintained, multi-make and electrified vehicles (EVs).
Accessible through an intuitive online quoting and ordering portal, Alphabet Salary Sacrifice puts customers in the driving seat. Participating employees can run as many quotes as they wish, and with the amount of salary ‘sacrificed’ and potential tax savings clearly shown, comparing vehicles is quick and easy. The portal also brings clarity to the in-life savings switching to EVs can deliver by providing estimated running costs per mile. Employers have the flexibility to determine the range of vehicles displayed in the portal and approve vehicle requests before fulfilment, allowing them to maintain control while benefiting from the full support of Alphabet’s expert team to aid implementation and management.
Alphabet’s new digital Salary Sacrifice offering is designed to appeal to both businesses and employees; businesses have the potential to save on car allowances and Class 1A NI, while their employees can ‘sacrifice’ a fixed amount of their pre-tax salary each month in exchange for a brand-new company car. Employees, particularly those who have previously taken cash allowances, can enjoy the freedom from ownership costs a company car brings as well as the opportunity to benefit from reduced tax rates, especially when it comes to electric and lower emission vehicles.
Salary Sacrifice is particularly beneficial for businesses where more expensive vehicles, like EVs, may not suit a traditional company car scheme. A Salary Sacrifice Car Scheme is a simple way for employers to provide a low-cost benefit that helps attract and retain talent, while working towards greener mobility by making low and zero-emission vehicles more accessible to their employees. And although EVs can appear to come at a slightly higher price initially, lower running costs and significant reductions in BIK tax, on top of the income tax and NIC-free treatment of the ‘sacrificed’ amount, mean employees reap the rewards of long-term savings and the benefits can ultimately outweigh the costs.
David Rose, Head of Product Management, Alphabet (GB) commented: “We’re always looking for ways to make mobility easier, and it’s great to add yet more diversity to our contract hire portfolio with the launch of Salary Sacrifice. Alphabet has been a driving force in electrification for many years now and we remain committed to helping customers transition to ultra-low and zero emission fleets. The introduction of Alphabet Salary Sacrifice helps improve the accessibility of EVs, creating more opportunities for our customers, and their employees, to gain the electric advantage.”
Salary Sacrifice is part of a growing suite of Alphabet products available to help businesses cater to the broad range of employee mobility needs. For more information on Salary Sacrifice, including a handy guide for fleet managers, visit: https://www.alphabet.com/en-gb/salary-sacrifice-car-scheme.
*Article Source www.nelsonbostock.com
