Opening Hours
Monday to Friday 08:00 - 18:00
Saturday by appointment
BR CARTRONICS Ltd - Unit 6b The Sidings - Merrylees Industrial Estate - Desford
Leicestershire - Tel: 01530 231100 - Email: service@brcartronics.com
Listed in Garage Finder
STAFF INCENTIVE AND SAVE MONEY
STAFF CAR REPAIR SALARY SACRIFICE SCHEME
Save money for both your employees and your company by offering a car repair salary sacrifice scheme.
As a company you would offer to pay directly the costs of all staff car repairs and servicing in exchange for your staff having the amount deducted from their wages.
This would save your staff 11% national insurance and the company would not only be re-imbursed by the staff member, but would also be able to claim the VAT element of the cost and also offset it against profit to reduce the annual tax liability.
For example, if the staff member's car had a £100 service, the Company would then put the £100 invoice through their books, reclaiming £16.67 VAT and £17.50 Corporation Tax.
Invoice Total £100.00
Money Repaid by Staff (£100.00)
VAT Reclaimed (£16.67)
Tax Saving (£17.50)
*Total Saving by Company £34.17
The staff member would have £100 deducted from their gross salary instead of their net salary, and so this money would not be subject to National Insurance and Tax at this point, giving the staff member an immediate £11 saving on National Insurance. Although the tax saving would be £20 at this point, it would be payable at a later date through the employees tax code after the P11d's have been submitted. Also the Company would still be responsible for the 12.8% Employers NI after the P11d's had been submitted.
Obviously it is a win win situation for both Staff and Employer alike. To make the deal even better BR Cartronics are offering to collect and deliver staff vehicles from their place of work so that essential car maintenance does not interfere with their working day for the efficient running of your business. On top of this we are also offering an additional 5% discount to all companies that take up this scheme.
Whilst £34.17 & £11 may seem like a small saving, remember that this is based on one single service of just £100, so imagine the savings when you add on MOT's, Brakes, Tyres, Exhausts etc across all of your staff. In today's economic climate every little saving soon mounts up to make a big difference! And don't forget the additional 5% discount on offer also!
The Boring Bit!!
To enable this scheme to work properly in the eyes of HMRC, the scheme must be offered to ALL staff members, although all staff members DO NOT need to take up the scheme.
All invoices from BR Cartronics must be addressed directly to the Company and the company must make the payment. Payments cannot be received by the staff member otherwise HMRC will not accept it as a valid scheme.
The Company would then pay BR Cartronics after payday so that there would be no disruption to the Company's cashflow.
The car repairs/maintenance would be classed as a benefit in kind to the employee and so must be declared on the annual P11d's submitted each year (these are very simple forms and do not take long to complete) The Company will the pay National Insurance on the benefit as if it has been salary (at exactly the same rate as before when the money was plain wages) and the employee will pay tax, again at the same rate as before, but it will be delayed by a year and will be a simple adjustment in tax code issued by HMRC, so it will be deducted directly from their wages.
*The tax savings have been based on an employee paying tax at the basic rate and a small Limited Company paying Corporation Tax at 21%