Venson Automotive Solutions has unveiled Venson Advantage, its new company car salary sacrifice scheme with built-in risk elimination for employers.
Therefore with income tax rates rising and personal allowances being cut, employees can make tax savings by sacrificing salary in return for a benefit-in-kind. In the case of a company car this would see a basic rate taxpayer giving up salary currently taxed at 31% (income tax and NIC) and a higher rate taxpayer giving up salary taxed at 51% and selecting a car with emissions below 120 g/km paying tax on 10% of the P11d value (13% for a diesel car).
Venson Automotive Solutions’ managing director Samantha Roff said: “With a series of tax and National Insurance rises imminent and the current benefit-in-kind tax system encouraging the uptake of low emission company cars, the financial position of vehicles in comparison with cash allowances will improve.
“In many cases, particularly if choosing a low emission model, we would anticipate that a company car would be the financially astute option for both employers and their staff. As the Government looks to cut personal tax thresholds, introduce a 50% tax rate and increase NICs, employees and employers will look to legitimately lower their tax charges.
“Additionally, companies that encourage staff into salary sacrifice schemes will be better able to manage their at-work driving health and safety compliance and, almost certainly, will deliver carbon footprint reductions.”
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