What is the Car Benefit Scheme?
It’s a fantastic benefit, provided to you via your employer. You’re able to configure a brand new car from scratch, complete with insurance, road tax, replacement tyres, routine servicing and maintenance, as well as RAC breakdown cover, for a fixed monthly amount. The amount is taken directly from your salary via a salary sacrifice arrangement, so you don’t even need to worry about setting up any direct debits. There are no deposits or credit checks and you just have to be employed for more than your employer’s minimum period, and earn over the National Living Wage, to qualify.*
*Individual employers may also have their own requirements, in addition to these.
What is a salary sacrifice arrangement?
With Tusker’s Car Benefit Scheme, you agree to give up part of your salary in exchange for a non-cash benefit - in this case a brand new car. The reduction to your salary is made before income tax and National Insurance are calculated, making it better value than a normal private lease agreement. As it's through your employer you will benefit from bulk manufacturer discounts, discounted finance rates and VAT efficiencies compared to a retail deal. Under the scheme there is company car tax, which is the tax payable on the Benefit in Kind (BiK). Your car is liable for Benefit in Kind tax as it is being provided as a benefit by your company.
What’s included in the fixed monthly amount?
- A brand new car built to your specification
- Annual servicing
- Fully comprehensive motor insurance
- Routine maintenance and repair
- Annual road fund licence
- Full RAC breakdown cover (including onward travel)
- Replacement tyres
- 24 hour driver support line
- Lifestyle protections in case of changes to your circumstances such as resignation, redundancy etc.*
- Accident management
*Lifestyle protections will vary for each employer. Please check your scheme policy for further information.
What is company car tax?
Benefit in Kind (BiK) is a tax on benefits or perks provided by your employer in addition to your salary. If you have a company car or salary sacrifice car, you will have to pay tax on the Benefit in Kind.
The Government is incentivising Ultra Low Emission Vehicles (ULEVs) which are vehicles registered with tailpipe carbon emissions of 75g/km CO2 or below. The amount you will pay will depend on the P11d value of the car, the CO2 emissions and your personal tax bracket. With higher CO2 tailpipe emissions, you will either be taxed based on the BIK or the salary being sacrificed, whichever is higher. Our online system will calculate and show the tax payable on the BiK in each quotation and the resulting net monthly cost. Plus, as an incentive for electric cars, from April 2020, there will be 0% BiK payable for pure electric cars which then only rises by 1% each tax year. This means that over a 3 year period, a 20% taxpayer could save around £4,000* in BIK by driving a zero emission car through the Tusker Car Benefit Scheme.
*0 emission cars will save a 20% tax payer 32% (Tax & National Insurance) on the monthly gross reduction. Year 2 & year 3 will see only a small charge on the Benefit in Kind.
When circumstances change
We also include Lifestyle Protection within the scheme to give protection against the unexpected, for example redundancy, resignation or other events that change your financial situation. The Lifestyle Protection starts once you have had a vehicle on the salary sacrifice scheme for a set period of time which is generally between 3 - 6 months.
This means there is no termination charge payable if the car is returned early in some circumstances. Please check your scheme policy to understand what lifestyle events are included in your specific scheme.
Benefits of choosing a car through the scheme:
- Motoring peace of mind: drive away a brand new car for a fixed monthly amount
- Income tax savings on Ultra Low Emissions Vehicles (ULEV)
- National Insurance savings on all cars
- Fully comprehensive business insurance
- One call number for all your motoring needs
- Excellent fleet and manufacturer discounts
- Great savings especially if a ULEV is selected from our range
- No credit check or deposit
- All routine maintenance, tyres, servicing and MOTs are included