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629 – Do you use a salary sacrifice scheme?

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Staff discussing salary sacrifice over coffee

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20 January 2012

Staff discussing salary sacrifice over coffee
Coffee break: time to exchange ideas on whether salary sacrifice is worth it

ACFO chairman Julie Jenner contacted me this afternoon – and it’s always a pleasure to hear from Julie – but apart from a quick chat what she wanted to know was just how popular are company car salary sacrifice schemes?

The fleet organisation she represents is conducting a survey to find out. It’s an online survey so easy to do.

My view on salary sacrifice schemes – where you sacrifice part of your salary for a car and reduce your benefit in kind company car tax bill – is that they are fine for large enterprises; but are just too expensive for SME fleets and small businesses to run. But anyway, Julie and ACFO want to know how popular they are.

“There’s lots of talk in the media of salary sacrifice schemes as a major development in the UK fleet market. Most fleet management service providers now offer some form of these schemes,” Julie told me.

“What is much less clear is the actual impact these schemes have had – or are likely to have – on the shape and size of the UK market. There are as yet no clear definitions for market analysis or tax base, so there is no picture of just how far these schemes have changed the market. We’d like to measure these aspects to see if should shape ACFO’s submission ahead of the March 21 Budget.”

We’re always willing to help here at Business Car Manager, so if you want to help out, go the survey at www.acfo.org. But I did tell Julie that it’s unlikely she’ll hear from many Business Car Manager readers.

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Ralph Morton

Ralph Morton

Ralph Morton is an award-winning journalist and the founder of Business Car Manager (now renamed Business Motoring). Ralph writes extensively about the car and van leasing industry as well as wider fleet and company car issues. A former editor of What Car?, Ralph is a vastly experienced writer and editor and has been writing about the automotive sector for over 35 years.

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