20 June 2018

When it comes to the myths surrounding employee benefit schemes, there are several misconceptions that organisations and fleet managers have. However, in the majority of cases they are just that - misconceptions. 

That’s why this month, we wanted to explore some of the common misunderstandings that we’ve heard in the past and help shed some light on what the truth actually is. 

A company needs to be a certain size

One of the first misunderstandings that we have come across in the past is that companies think they need to be a certain size, with a specific number of employees, to benefit from company car leasing.

Thankfully, this isn’t the case. There’s no restriction or specified number of employees, so regardless of whether an organisation has five or 5,000 drivers, they’re still able to benefit. It’s important to remember that if a business is smaller, there may be some administration work involved. 

However, if you utilise the services available from your fleet management company, they will be able to manage the process for you. 

There’s a substantial risk to the business

When compared to other financial agreements, employee benefit schemes are relatively low risk. For example, if a fleet manager is introducing a car salary exchange scheme, then the lease is held directly with the employee, meaning that there are already measures in place to protect the employer in the case of terminations and redundancies. 

We would always advise speaking to your vehicle leasing and fleet management representative if there are any specific queries or concerns regarding the contracts. 

Only certain employees are eligible

When it comes to vehicle leasing schemes, there’s no restriction on who is able to apply for a vehicle. In the past, some may have assumed that it was only higher management or directors who could receive a new car, but that’s not the case. 

Whilst it’s true that those on higher salaries may save slightly more, any employee can still take advantage of tax benefits, as well as savings on maintenance, servicing and repairs. With fleet management and leasing companies such as sgfleet, this process can be managed for the driver, so they don’t have to worry about unforeseen repair bills. 

There’s a minimum mileage amount that needs to be reached every year

This may have been the case in previous years, but there’s no longer a minimum annual mileage that needs to be reached to be able to apply for a car benefits scheme.

When an employee enters into a leasing contract, the annual mileage is written into the contract. Sometimes, this mileage can be increased or decreased, depending on the circumstances of the driver. 

Drivers still have to pay for maintenance and servicing

Thankfully, this isn’t the case when it comes to most company car schemes. It’s an important factor that fleet managers need to make their drivers aware of, as many may still think that it’s something that they’ll have to pay. For example, the sgfleet Car Salary Exchange scheme includes:

  • All servicing, maintenance and tyres
  • Road Fund licencing
  • Accident management
  • Roadside assistance
  • Comprehensive insurance

Only electric vehicles are available

Luckily, this simply isn’t true. Whilst there are benefits to introducing a green fleet, all-fuel vehicles are available on salary sacrifice schemes. This means that if a fleet manager has a team of drivers that regularly undertake long distances, they are able to choose a vehicle that best suits these long journeys.

Likewise, if the drivers are only visiting clients in urban areas, then smaller city vehicles are available. Each vehicle brings its own savings, which a fleet management company will be able to advise you on.


In conclusion, we hope this article has helped clear up some employee benefit scheme misunderstandings. If the right, relevant information is available at the start of the decision-making process, drivers and fleet managers are able to make informed decisions and benefit in the long term. 

To find out more about our fleet management and leasing, employee benefits solutions and driver services, call a member of our team on 0844 854 5100 or email CSalmon@sgfleet.com.