Error parsing XSLT file: \xslt\FacebookOpenGraph.xslt Salsac schemes still beneficial, despite changes, says Fleet Hire
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Salsac schemes still beneficial, despite changes, says Fleet Hire

Date: 24 January 2017   |   Author: Daniel Puddicombe

Possible savings offered by car salary sacrifice schemes to motorists are not outweighed by the incoming changes to the system, leasing company Fleet Hire has claimed.

From April, employees will pay benefit-in-kind tax on whichever out of the current emissions based calculation, or the gross salary sacrificed is the higher number.

However, for those looking to run an ultra-low emission vehicle, there are no changes to the current salsac regime.

At the time of the announcement, made during the Autumn Statement, many claimed these changes would discourage the uptake of 'salsac' schemes, but Fleet Hire found over the course of a three-year leasing deal, the cost of a Nissan Juke diesel model will remain the same.

It added that many other cars are only very slightly affected or unaffected by the changes, thanks to BIK tax rates rising year-on-year.

"The key features of car salary exchange solutions continue to provide employees with an attractive, cost and time effective way to access a new car," said Graham Hale, managing director of Fleet Hire. "We are pleased that we have clarity from the Government that cars will continue to feature as a valuable employee benefit."

"Initially, the financial impact of the Government's changes was not properly understood. So we've been busily explaining the true impact to our customers and employee benefits partners," said Zaf Iqbal, partnerships director at Fleet Hire.



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