Salary Sacrifice

KINTO Salary Sacrifice is a great way for employers to enhance their employee benefits package that enables employees’ access to brand new vehicles for a fixed monthly cost.

Here’s how it works – instead of using the take home salary to finance a vehicle, the employee can choose to opt into their employer’s salary sacrifice scheme. They agree to contribute a fixed amount of their monthly salary (before tax) through payroll deductions and in exchange, they will receive a brand-new vehicle.

As the contribution is taken before income tax and National Insurance deductions, both the employee and employer can make substantial savings through the scheme.

To access this scheme the employer will need to partner with a specialist provider, such as KINTO.

There are no set up or monthly management fees to set the scheme up through KINTO. Also, offering a salary sacrifice scheme can be an attractive incentive for potential employees, boost employee retention and help achieve environmental sustainability targets.

Savings are made on the employer National Insurance because the employee is contributing part of their gross salary.

Benefit-in-kind is a tax paid by employees who receive benefits or perks on top of their salary, for example when they choose to have a car through a salary sacrifice scheme. Electric vehicles attract the lowest tax rate as the government continue to encourage electric vehicles. Therefore, using the government incentives, an employee can benefit from tax savings and drive a brand-new electric vehicle at an affordable price.

Employees will not be required to complete a credit check or pay any form deposit. Everything is included within one fixed monthly cost for the duration of the agreement, making it a great way to budget whilst making tax savings. The vehicle is fully maintained, insured, covered for tyres, travel abroad and MOTs. So, all that’s left to do is fuel or charge the vehicle.

I would like to encourage everyone who wants to find out more about KINTO Salary Sacrifice to get in touch. I would be more than happy to answer any questions and provide more details about the scheme.