Switching between cars and cash

Everyone has heard of Salary Sacrifice for cars. Far from being a sacrifice, with this solution take home pay for staff goes up and they have a new car every three years. The employer typically saves around £2,000 p.a.

Some companies are moving away from cars to cash and Innovation is happy to help those companies develop the right strategy and allowance levels.

As a firm Innovation believes that in the long run, for low emission cars, there is always going to be a greater tax synergy and arbitrage by choosing to offer cars over cash, notwithstanding the other savings associated with simplification.

Not only will the choice of opting for a car serve as a positive too for recruitment and retention, it can also mitigate risks around grey fleet management and corporate manslaughter.

Peter Moroz pioneered the whole concept of salary sacrifice in the ’80s and ’90s and now uses those skills and experience to help drive down operating costs for his clients at Innovation.

Innovation is a very ethical firm. They pride themselves on complying not only with the letter but spirit of the law and have a number of ways of ensuring that there is always ‘clear blue water’ between what they do and what is expected from HMRC, thereby proving that you don’t have to be aggressive or risk taking to save tax; just innovative and smart.

They have also developed a real interest and knowledge of our business, and have developed an excellent client relationship.

I would have no hesitation in recommending Innovation and their tax team to any business.

Mark Faulkner, HR Director, EH Smith Ltd