At KINTO, we provide a Salary Sacrifice scheme which is extremely popular due to the wide range of benefits it brings to both employers and employees.

To provide some more in-depth understanding, we asked our Salary Sacrifice Product Champion Lloyd Williams to answer a few questions.

What exactly is Salary Sacrifice?
Put simply, a salary sacrifice scheme is where an employee agrees to contribute part of their gross salary and in return the employer provides a non-cash benefit. For example, childcare vouchers, cycle-to-work or increased pension contributions, and in this case, a brand new car.
KINTO Salary Sacrifice is a great way for employers to enhance their employee benefits package which helps employees make tax savings. By choosing a KINTO Salary Sacrifice car scheme the employee’s gross salary is reduced by the amount that they have agreed to contribute. Income Tax and National Insurance is then calculated on the ‘new’ monthly salary. This will mean the employee will pay less tax and National Insurance.

What other benefits can KINTO Salary Sacrifice provide?
There are great benefits for both the employer and employees. Some of the key benefits to the employer include no set up or monthly management fees. The scheme will enhance the benefits package and support with employee retention. It is also a fantastic way to encourage employees into an electric vehicle because of the tax savings that can be achieved. There is also an opportunity to make Employer NI savings with a salary sacrifice scheme.

As an employee, they will not be required to complete a credit check or pay a deposit. The monthly cost is fixed for the duration of the agreement making it a great way to budget whilst making tax savings. The vehicle will be fully maintained, insured, covered for tyres, travel abroad and MOTs. It is also one of the most affordable ways to drive an electric vehicle.
The scheme is accessible through KINTO’s user friendly online quoting and ordering portal. KINTO will also support the day to day running of the scheme and are on hand to answer any questions employees have.

Is the scheme suitable for electric vehicles?
Yes! Electric vehicles attract the least Benefit in Kind Tax liability and this will maximise the tax savings the employee can make.
This is why the scheme is so effective and is one of the most affordable ways to drive an electric vehicle.

Can you tell us a bit more about the benefit-in-kind tax?
Benefit-in-kind or BIK is a tax on employees who receive benefits or perks on top of their salary.
As a salary sacrifice vehicle is offered through the employer to the employee and they will be able to use the car for private use, benefit-in-kind tax is applicable for salary sacrifice.

Is there anything you would like to add?
There’s a lot more to be said about KINTO Salary Sacrifice and the benefits it can offer. It is a product that is extremely popular and frequently talked about within industry. If you are interested, I would encourage you to get in touch as I would be more than happy to answer any questions or provide further information about Salary Sacrifice.