The increasing demand for salary sacrifice products has seen leasing and mobility provider Alphabet offer its own solution for the company’s corporate customers.
Available to all participating employees, the available vehicle can be accessed through an online portal allowing employees to run as many quotations as they wish with the amount of salary ‘sacrificed’ and potential tax savings clearly shown.
Salary sacrifice works as a financial tool for fleets thanks to the low benefit in kind taxation on zero-emission electric vehicles. It also allows employees normally outside a company car program to benefit from a new company provided car by sacrificing part of their gross salary for the provision of a fully financed and maintained car.
The savings are made on the reduced tax paid on the net salary as well as lower National Insurance costs. There is some benefit in kind tax to be paid, but this is currently at such a low amount as to be negligible in the cost benefits.
Alphabet says that employers can determine the range of vehicles displayed in the portal and approve vehicle requests before fulfillment, allowing them to maintain control. The back end fleet management and implementation is provided by Alphabet.
David Rose, head of product management at Alphabet (GB) commented:
“We’re always looking for ways to make mobility easier, and it’s great to add yet more diversity to our contract hire portfolio with the launch of Salary Sacrifice. Alphabet has been a driving force in electrification for many years now and we remain committed to helping customers transition to ultra-low and zero emission fleets. The introduction of Alphabet Salary Sacrifice helps improve the accessibility of EVs, creating more opportunities for our customers, and their employees, to gain the electric advantage.”