CBVC Vehicle Management launches Sal Sac Lite for small businesses
CBVC Vehicle Management, a specialist fleet management company, has launched a new electric vehicle (EV) salary sacrifice product ‘Sal Sac Lite’ – created specifically for small businesses.
Salary sacrifice is a tax efficient way for businesses to offer a fully maintained electric vehicle to their employees. It can form part of an enhanced employment package at a cost that is substantially below what employees would pay for the same car on a personal lease.
CBVC Vehicle Management says its Sal Sac Lite is appealing to SMEs because of its ‘plug and play’ functionality, offering a simplified version of the company’s full salary sacrifice scheme.
Why Sal Sac Lite from CBVC Vehicle Management?
● Suitable for small businesses with up to 50 employees
● Offers enhanced staff retention through affordable access to an electric vehicle
● Assists smaller companies with their Environmental, Social and Governance (ESG) agenda
● Simple to implement and can save the business money
To find out more about Sal Sac Lite – CLICK HERE
Mike Manners, Managing Director of CBVC Vehicle Management, explains how Sal Sac Lite came about:
“We already provide salary sacrifice schemes to a number of very large and small corporates and we identified a gap in the market for a specific small business version that would be easy to implement. The outcome is the same – a tax efficient electric car for an employee. Sal Sac Lite allows small businesses to benefit from highly sophisticated, simple to use software and full backup of management and payroll reporting.”
CBVC Vehicle Management says that Sal Sac Lite can be set up in as little as two weeks. Included in the offering is the provision of a state-of-the-art online salary sacrifice portal. This allows employees to research all the cars available to them, watch and read reviews, and see all the technical data relating to the car – including model costs of optional extras and mileage.
How does salary sacrifice work?
Essentially, employees elect to give up part of their gross salary in return for an electric vehicle. The employee saves income tax and national insurance contributions (NIC) on the salary they sacrifice and pay a small amount of benefit in kind (BIK) on the car – set at two per cent until the end of 2024/25. The employer also makes savings due to decreased national insurance paid on the employee’s salary.
How Salary Sacrifice benefits both employer and employee
As well as the savings offered by salary sacrifice, there are a number of additional benefits:
Employer benefits – Salary sacrifice is an excellent employee retention and attraction tool and there is no cost to implement it. The scheme also supports business duty of care as employees are in new, fully maintained cars rather than private vehicles used for business (also known as grey fleet). By reducing fleet carbon emissions, salary sacrifice promotes the green agenda and the road to net zero.
Employee benefits – Salary sacrifice enables employees to benefit from a brand-new electric vehicle with significant savings compared with leasing the same car personally. The fixed monthly cost includes all routine servicing, maintenance and breakdown as well as the annual road fund licence. Unlike a personal lease, no deposit or credit check is required and the switch to electric also means reduced fuel costs.