Zenith seeing more employees being attracted to salary sacrifice schemes

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COST efficiencies and stable prices are attracting more staff to salary sacrifice schemes, according to a survey carried out by Leeds-based leasing, fleet management and vehicle outsourcing company Zenith.

Forty one per cent of drivers who were quizzed by Zenith said they decided to join a salary sacrifice scheme because they thought it would save them money.

According to Zenith, the cost efficiencies delivered through tax savings, enhanced corporate discounts and packages with fixed costs, are helping to increase demand for salary sacrifice schemes during a period when disposable income remains tight.

A Zenith spokesman said: “Employees benefit from knowing how much the car will cost from the outset and they are protected from market fluctuations, including insurance and maintenance.

“Road tax, accident management, windscreen and tyre replacements are also included in the price and the figure employees are quoted at the point of order factors in ‘benefit in kind’ tax payments. The only cost not included is their fuel.

“The popularity of salary sacrifice continues to grow among Zenith’s existing customer base and there are several more new schemes due to go live in the next few months. The scheme is helping employers to reward, motivate, retain and recruit employees, during these challenging economic times.”

In recent years, Zenith has grown to become one of the UK’s biggest independent leasing, fleet management and vehicle outsourcing businesses.

Last year, HSBC Corporate Banking completed a multi-million pound securitisation deal for Zenith, which will provide the company with income through the capital markets.

Around 700 million miles were covered by Zenith’s vehicles last year.

Zenith’s long-standing clients include Leeds-based supermarket chain Asda.

Last year, chief executive Tim Buchan told the Yorkshire Post that the £150m turnover company was well-placed to develop more aggressively.