30 April 2013


Does salary sacrifice have a part to play as a strategic product to help
reduce overall fleet costs?


Salary Sacrifice has been a subject of much debate within the UK fleet industry over the last few years. To date the product has been largely marketed as an employee benefit targeted at those employees who would not generally be entitled to a company car.

At sgfleet, the attraction of Salary Sacrifice is seen on a much wider scale. This is due to the fact that the structure of sgfleet’s Salary Sacrifice solution does not create any risk for the employer whilst maximising benefits to the employee.

sgfleet consider Salary Sacrifice as being  the optimum solution to grey fleet management by not only providing a more tax efficient and therefore cost effective solution but also ensuring that employees  are driving a vehicle that is fit for purpose, has  low CO2 emissions and is fully maintained and insured.

In an environment where all large fleet operators are looking at ways of reducing costs, sgfleet believe that Salary Sacrifice has a part to play in an organisation’s core fleet. Relieving the fleet manager of end of contract costs and removing the expenses of early termination penalties will result in not only significant cost savings but employees can have a wider choice of vehicles.

Investment in fuel management, risk reduction and driver behaviour are other key areas to further reduce costs. By educating drivers in fuel saving driving techniques, ensuring the accuracy of business mileage claims and reducing the chances of drivers having accidents are fundamental issues for any fleet operator to address.

In these challenging economic times, has the time come for the fleet manager  to look at more efficient ways to run a company car by not having to deal with ad hoc recharges, damage and early termination costs, thus unlocking large savings?