Salary Sacrifice from OVL Group
Salary sacrifice is a benefit that employers can offer their employees, where the employee agrees to forgo a portion of their pre-tax salary in exchange for a fully electric or Plug In Hybrid Car.
This reduces the employee's taxable income, which increases their take-home pay. Employers can benefit from salary sacrifice as they can save on National Insurance Contributions (NICs) due to the reduced employee salaries. VAT savings and Offset rentals against corporation tax.
The adoption of electric vehicles through salary sacrifice also helps the environment and improves a company's ESG ratings.
Benefits for your business
- No cost to your business - There is no set-up fee. Instead you pay a fee derived from the company National Insurance and VAT savings, therefore the scheme is implemented at no cost whilst offering many benefits to both the company and your employees. All employee savings are retained by the employee.
- Suitable for all employees - Regardless of their status or need for a company car within the business, so long as the individual’s salary is at least the national minimum wage after any deductions.
- Full support package - OVL Group, in partnership with the car salary sacrifice experts SalSac, manage the whole process. From initial set up, including employee eligibility, company credit line, employee vehicle quotations including salary deduction, income tax and NI savings and BIK calculation. Through to, vehicle order, salary deduction calculations, vehicle delivery and in-life support for both employee and employer, including periodic reporting to assist with HMRC submissions and payroll deductions.
- Tailored for your business - The scheme can be tailored to your company’s requirements, for example limiting employee choice to only low or zero emission vehicles, size or type of vehicle or contract length.
- Protection for unforeseen circumstances - The vehicle lease can usually be terminated early and in most circumstances you’ll be refunded with an amount equivalent to the funder’s early termination fee.*
- Electric vehicles - When electric vehicles are chosen it will assist your green agenda and help to deliver on your Environmental, Social, and Governance (ESG) and Corporate Social Responsibility (CSR).
- Grey fleet reduction - The scheme assists with duty of care and health & safety in the management of grey fleets (employees using their own vehicles for business purposes).
- Vehicles are transferrable - If an employee leaves the company, their lease vehicle can be transferred to the employees new employer or to another employee in your company, subject to eligibility criteria.*
- Employee Retention
* exclusions apply
Benefits for your employees
One set monthly salary deduction, includes:
- Significant savings compared to retail alternatives
- Vehicle servicing, maintenance and repair
- Tyre replacement due to wear & tear
- Roadside assistance in the event of a breakdown
- Road fund licence
- Fully comprehensive motor insurance with the cost fixed for the duration of the lease.*
- Fully fitted electric vehicle home charger *
- Protection for unforeseen circumstances, eg. long term sickness*
- Tax & NI savings - Because payment is taken from the employee’s gross salary via payroll, they benefit from Tax and National Insurance savings (typically 30-40% savings for an electric vehicle) making the rental substantially less than a Personal Contract Hire (PCH) or Personal Contract Purchase (PCP) agreement.
- A new car every 2, 3 or 4 years
- Low Benefit in Kind (BIK) payable for electric vehicles- BIK rates on an electric car are currently only 2% until 2025, rising by only 1% per year until 2028.
- No deposit or employee credit check
* Optional
Salary Sacrifice – The process
Lifestyle Provision
Lifestye provision is optional for customers. Sometimes things don’t go to plan our lifestyle provision helps protect you against Life style events.
Example - inc Lifestyle Provision
How to proceed
Interested in working with OVL to set up a salary sacrifice scheme for your team?
- The first step is a fact-finding call with our expert team
- Next we arrange a full consultation meeting to discuss your business requirements and goals
- OVL creates a tailored solution for your business to include:
- Selection of electric vehicles and charging solutions
- Decide on additional options such as insurance, maintenance cover, and early termination
- Develop any restrictions you want to put in place
- The scheme is launched to your business
- We manage the scheme moving forward and provide continuous fleet management services to ensure smooth operation. This includes mileage amendments, drivers' license checks, and compliance monitoring
- We provide a point of contact for employee inquiries and support regular performance reviews and adjustments as needed
Why OVL Group
- Established 1989 - Helping businesses with 1 – 200 employees to manage their fleets and find the perfect vehicles.
- Dedicated Account Managers - We love to talk, build relationships and really understand our clients’ businesses so that we can help you find the correct solutions to meet your needs.
- Our team has a decades of combined experience and with the majority of our team having worked with OVL for 10 years or more, consistency is promised making everything work smoothly for you. Fleet Analysis and Optimisation
- Tailored Fleet Management Solutions - We can do everything from simply supplying quotes to fleet analysis, whole life cost analysis and we work with all parties involved
- OVL Group Ltd is authorised and regulated by the Financial Conduct Authority VAT No. 717 9477 90, Registered in England & Wales No. 02589261, FCA Firm Reference No. 663287, Data Protection Register No. Z7343703
