Business and mobility specialist Alphabet has announced the launch of its own in-house salary sacrifice product for corporate customers, in response to the growing interest in electric vehicles (EVs) from companies and staff keen to benefit from tax breaks and the chance to go green. Salary Sacrifice offers companies the flexibility to offer all employees, including those who may not have been previously eligible for a company car, access to a range of new, fully maintained, multi-make EVs.
Alphabet has launched an intuitive online quoting and ordering portal which allows participating employees to run as many quotes as they wish, with the amount of salary “sacrificed” and potential tax savings shown clearly, making it quick and easy to compare vehicles. The portal also brings clarity to the in-life savings switching to EVs can deliver by providing estimated running costs per mile.
Employers have the flexibility to determine the range of vehicles displayed in the portal and approve vehicle requests before fulfilment, allowing them to maintain control while benefiting from the support of Alphabet’s expert team to aid implementation and management.
Alphabet said the new offering is designed to appeal to both businesses and employees: businesses have the potential to save on car allowances and Class 1A NI, while their employees can give up a fixed amount of their pre-tax salary each month in exchange for a brand-new company car. Employees, particularly those who have previously taken cash allowances, can enjoy the freedom from ownership costs a company car brings as well as the opportunity to benefit from reduced tax rates, especially when it comes to electric and lower emission vehicles.
The company said salary sacrifice is particularly beneficial for businesses where more expensive vehicles, like EVs, may not suit a traditional company car scheme. Although EVs can appear to come at a slightly higher price initially, lower running costs and significant reductions in BIK tax, on top of the income tax and NIC-free treatment of the ‘sacrificed’ amount, mean employees reap the rewards of long-term savings and the benefits can ultimately outweigh the costs.
David Rose, head of product management, Alphabet (GB) commented: “We’re always looking for ways to make mobility easier, and it’s great to add yet more diversity to our contract hire portfolio with the launch of Salary Sacrifice. Alphabet has been a driving force in electrification for many years now and we remain committed to helping customers transition to ultra-low and zero emission fleets. The introduction of Alphabet Salary Sacrifice helps improve the accessibility of EVs, creating more opportunities for our customers, and their employees, to gain the electric advantage.”
