Salary sacrifice: the experience of fleet decision-makers

Guidance - and areas of annoyance - from fleet decision-makers on salary sacrifice schemes were shared at the May meeting of the Fleet200 Strategy Network.

Here are key points in the discussion:

Three schemes cited around the table have not had huge take up in the first 12 months of launching their scheme. All had between 500-1,200 employees with nine-11 vehicles ordered within the first 12 months.

Main comments on underperformance were due to affordability – 20% taxpayers close to minimum wage can’t access any vehicles.

It's important to share 100% NI with the employees; this should be an employee benefit and not for the company to profit from it. Take up in the company where this is the case is at 5.5% take up across their schemes.

Frustration expressed that one salary sacrifice provider only offers a ring fenced number of vehicles depending on what stock vehicles they have available.

Age restrictions on insurance depending on the insurance group of vehicles is a concern. It is essential to only show employees what they can afford and vehicles they can have insurance on, rather than the entire list of vehicles available to all staff.