Survey - Uptake of Salary Sacrifice schemes across the UK Fleet Market

A major topic across the UK fleet market is the deployment of "Salary Sacrifice" schemes. Essentially, the employer provides some benefit or service in return for the employee formally giving up some of their GROSS salary. Because the employee sacrifices gross salary it means the tax, NI and pension contributions they usually pay is reduced as all these charges depend on the AMOUNT the employee earns.

The structured arrangements behind these schemes provide benefits - in our case, company cars - to a wide range of employees. These are not necessarily those who would normally qualify for a company car. In many cases these schemes can be highly tax-efficient. Where the cars selected are low emitters (of CO2) the tax payable under normal Benefit-in-Kind rules should be considerably lower than the value of the salary sacrificed.

'Salary Sacrifice' schemes are much discussed in fleet circles - but just how prevalent are they?

This type of arrangement is frequently discussed, but actual uptake in the market-place is less well understood. The results of this survey will be helpful to many areas to assess the scope and relevance of these schemes in UK Fleets. Our short survey - open to all visitors to the ACFO web-site - seeks to sample the market to assess just how many fleets - and how many vehicles - are now operating under some form of Salary Sacrifice arrangement.

This is a very important issue, as it will have an influence on how HMRC/ HM Treasury look at the taxation of the 'company car' and other forms of Salary Sacrifice (a set of tax rules and allowances that extends to a wide range of 'potential benefits'; not just cars.)

The Survey

To complete the short survey form please click here.

All data collected will be treated in strict confidence in line with the ACFO privacy policy.