Water firm introduces car salary sacrifice scheme

Northumbrian Water has implemented a salary sacrifice initiative for its 350 company cars after deciding to end its employee car ownership scheme, Employee Benefits reports.

The company''s salary sacrifice scheme forms part of the its flexible benefits plan, which is openly available to around 3,000 of its employees.

As a means of keeping carbon emissions to a minimum, the benchmark vehicles will be capped at an emission level of 160g/km across all job grades, with staff having to pay money aside from the scheme if they want another vehicle.

Michelle Legg, compensation and benefits manager at the firm, told the magazine: "This benefit is available to all employees who may choose to take a car for themselves or for a member of their immediate family, giving savings on tax and national insurance.

"Employees have a free choice of car in the salary sacrifice scheme provide emissions do not exceed 160 g/km which mirrors the structure of our company car scheme."

The Gangmasters Licensing Authority said recently that it will revoke the licenses of employers who use salary-sacrifice arrangements to abuse tax-free allowances for workers. Back