Salary Exchange

"It was easy to select a new car through the scheme
and the information & support I was given made this a very easy process"

- Sarah Collet, Sales Support Executive, Fleet Hire
See Case Study

Salary exchange is an arrangement where an employee gives up part of their future earnings or bonus in exchange for a non-cash benefit.

As the salary is being ‘exchanged’ rather than paid from the gross amount, the employee does not pay Income Tax or National Insurance Contributions (‘NICs’) on the exchanged amount. In addition, an employer doesn’t pay NICs on the amount of salary exchanged either. The exchanged amount can then be used to provide the employee with a benefit, in this case a company car.

However, unlike other benefits such as cycle to work and child care vouchers, an employer is not legally required to offer the benefit to all employees and can exclude certain segments of the employee population where perhaps due to type of role, employee turnover rates are higher than other areas of the organisation.

Working with employers directly and via employee benefit companies and professional advisers we have experience in designing, implementing & managing car salary exchange schemes that are tailor made to suit the individual needs of our customers. An employer has the option of either passing the full employer Class 1A NIC’s savings to the employee within the monthly car salary exchange amount or retaining the savings. Importantly employer administration is avoided since all the processes and reporting is fully automated and outsourced via our web based ‘self-service’ portal.

    Key Features

  • Branded easy to use web based portal
  • Multi-layered password access enabling multiple authority levels
  • Vehicle tax calculator and comprehensive quoting tool
  • Employee postcode driven insurance quoting module
  • FAQ and agreements held within portal
  • Fully automated vehicle ordering process
  • Full reporting suite
  • Dedicated account management support with named contacts

    Employer Benefits

  • Potential Tax Savings
  • Promotes Employee Loyalty
  • Helps meet Duty of Care Risk
  • Improves Green Credentials
  • Employee Retention Tool
  • Web Portal MI Management
  • Low Risk - scheme is cost neutral to employer
  • Full Administration support provided by Fleet Hire
  • Direct driver contact with Fleet Hire

    Employee Benefits

  • Significant Savings when compared to High Street deals
  • Affordable fixed monthly costs
  • Fully Inclusive Package including Servicing, Insurance, Tyres, Accident Management & full peace of mind motoring
  • Allows employees to access employer’s Corporate Purchasing Terms on new vehicles
  • Easy to use Web Portal ensuring a completely informed decision process
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