With no setup or running costs, our Administration Fee is equivalent to your company's tax savings, so you can roll out the scheme at no cost to your business! We collect our Administration Fee in accordance with the payment terms in our Administration Services Agreement with the company
The Admin Fee is the sum of:
- Reduction in company NI contribution
- Reclaimable VAT
- Minus the tax on BIK
Employer NI savings
Because the employee's salary has been lowered, the company will see natural reductions in NI contributions.
Reclaimable VAT
The reclaimable VAT for each car and any additional services or fees (which are currently set at 10% for lease or hire costs and 20% for other services and fees).
Our Administration Fee remains the same, even if the company is not VAT registered or is partially exempt from VAT. Instead, we ensure net zero cost to the company by adjusting the salary sacrifice arrangement for each car ordered under the scheme. These adjustments generate an amount equivalent to the VAT Savings for that car and such amount is instead used for the payment of the Administration Fee.
Our Administration Fee is payable in full for each car arranged under the scheme and the payment obligations remain in full force and effect even after the termination of the scheme.