Is the future affinity, salary sacrifice or ditching schemes altogether?

Is the future affinity, salary sacrifice or ditching schemes altogether?

Fleet Evolution, one of the UK’s leading providers of car salary sacrifice schemes to SMEs, has urged companies to explore the fleet options available post autumn statement to ensure they know all the facts before making snap decisions and potentially causing both themselves and employees stress.

Salary sacrifice, affinity and ECOs schemes are the most common fleet options available, but with many wondering whether they still had a place up until the autumn statement, some employers began to look at alternatives and even questioned their entire model.

Andrew Leech, Managing Director at Fleet Evolution, said, “Last year there were all kinds of suggestions and predictions about what was going to happen to salary sacrifice schemes after the autumn statement, not to mention lots of miscommunication post announcement.

“The truth is that most schemes are relatively unaffected by the changes as the benefit has always been taxable. On some cars for example, savings may be reduced, but they will still far exceed the benefits of most personal leasing or affinity schemes.”

Salary suffice schemes have been championed by employers and employees alike since their inception. Proven to increase productivity, loyalty and even the happiness of a workforce, there has been a lot of research on why and how they work in the modern workplace. Affinity schemes however, which are essentially personal leases, have been shown to have virtually no impact on productivity or retention. They employee is expected to manage all the servicing etc. themselves, while the costs do not change should they move on.

“We agree that expert advice is essential, and we wholeheartedly recommend this is sought prior to signing on the dotted line,” added Andrew. “However we suggest that business leaders seek advice from companies who offer both salary sacrifice and personal leasing, as only then can they rest assured of the best advice for both them and their employees.”

Fleet Evolution provides a one-stop shop for employers looking to retain and attract talent while keeping productivity up and doing their bit for the environment.

To find out more about Fleet Evolution’s innovative approach, visit the website: www.fleetevolution.com

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About

Fleet Evolution is one of the country’s fastest-growing salary sacrifice car providers, with tax-efficient, low-admin schemes with minimal risk. Fleet Evolution works with businesses with 10 – 15,000 employees, delivering manageable schemes that reward employees and attract talent.