Car club introduces salary sacrifice
23 September 2011
Low-emission VW and BMW cars and vans form the basis of an employee vehicle rental joint venture scheme, involving Streetcar and Aon Hewitt, a global HR consultancy, which is claimed to be the first car club service using salary sacrifice.
Aon Hewitt staff, predominantly based in city centres, will be able to rent the vehicles on an hourly or daily basis and exchange part of their pre-tax salary for benefits, which entitle them to car usage.
Using company 'trip codes', valid for five hours of Streetcar rental, this halves usual hourly rates, due to the pre-tax salary exchange. It is considered more tax-efficient for employees who don't drive frequently.
BIK is only due to be paid by staff when they use these vehicles and, according to Mark Walker, the general manager of Streetcar, a subsidiary of Zipcar, it is part of the company "constantly looking for ways to help move away from the expensive and inefficient model of individual car ownership".
An Aon Hewitt spokesperson described the scheme as "a real alternative to company cars and expensive car hire".
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