You Can Now Salary Sacrifice EV Charging!
There are several ways to charge an electric car: at home, on the street, in public, at work, and more. The two biggest barriers to EV adoption are upfront costs - which are combatted by EV salary sacrifice schemes like The Electric Car Scheme - and charging accessibility.
If you don’t own your home or have access to a personal EV charger, public charging can be costly. However, significant efforts have been made to improve EV charging accessibility, including government grants such as the Plug-in Grant, the Workplace Charging Scheme, and the EV Chargepoint Grant. Infrastructure has also expanded significantly; as of the end of September 2024, there are over 70,000 EV charging points across the UK - a 41% increase from last year.
At The Electric Car Scheme, our mission is to make Net Zero the obvious choice by simplifying, making it affordable, and easing access to electric cars. Today, 53% of British consumers say they can’t afford to reduce their carbon footprint, while 37% identify EV cost as the main barrier. We believe our mission should extend to making EV charging accessible and affordable. That’s why we’re introducing The Charge Scheme - the most affordable way to charge your electric car.
This blog will explore what The Charge Scheme is, how it works for employees and companies, and how much it can save drivers.
What Is Salary Sacrifice EV Charging?
Salary sacrifice for EV charging allows employees to use pre-tax income to cover electric vehicle charging costs, reducing taxable income. Employers provide the charging benefits, while employees enjoy cost savings on both taxes and charging fees, making it an effective, tax-efficient way to support EV use.
What Are The Current Issues With EV Charging?
There are several issues people have with EV charging such as infrastructure, reliability and cost.
Lack Of Charging Infrastructure
Despite year-on-year improvements in the UK’s charging infrastructure, some areas still lag behind. Northern Ireland and Yorkshire have the fewest charging devices per 100,000 people, with 32 and 56 devices, respectively, while the North West lacks sufficient Rapid and Ultra-Rapid chargers. Infrastructure upgrades are still needed in rural areas, deprived communities, and residential streets with limited off-street parking.
EV Chargers Are Often Unreliable
Another challenge with EV charging is charger reliability, a significant issue in both the UK and the US. Nearly a quarter of charging stations in the US frequently malfunction, fueling range anxiety and concerns about finding reliable chargers on long journeys. In 2022, ZapMap’s EV charging survey revealed that 65% of respondents cited charger reliability as a major concern.
Public Charging Is Expensive
Charging an EV at home is cost-effective, and switching from petrol or diesel to electric can save significantly on fuel costs. However, without a home charger or on-street charging, reliance on public chargers can be costly - sometimes matching petrol or diesel prices. According to Fleet News, EV drivers may pay up to 20 times more than home charging rates when using public chargers.
What Is The Charge Scheme?
The Charge Scheme is an add-on to The Electric Car Scheme’s EV salary sacrifice package, designed to make EV charging more accessible and affordable through salary sacrifice. In addition to electric car savings through the scheme, employees can now save between 20 and 50% on all charging through The Charge Scheme app and card.
The Electric Car Scheme secures savings for charger installation, exclusive home tariffs and the cost of charging - whether at home, at the office or on the go. Best of all, it doesn’t cost the employer anything extra, as it integrates seamlessly with existing services.
How Does The Charge Scheme Work?
The Charge Scheme is available to companies who have an EV salary sacrifice scheme set up. If you’re an employee currently leasing a car through a scheme, like The Electric Car Scheme, simply download The Charge Scheme App and record your monthly mileage. Our team will then calculate the total charging cost and send payroll instructions for the following month. Your employer will reimburse this amount to your net salary, which will then be salary sacrificed from your gross pay.
Positives Of Using The Charge Scheme
As mentioned, The Charge Scheme was created to make EV charging more accessible and affordable for our customers. Here are the benefits for both employees and employers:
Benefits For Drivers
The Cheapest Way To Charge
Drivers can save 20-50% on EV charging costs by salary sacrificing - whether charging at work, at home or using public chargers. This makes EV charging significantly cheaper, especially for those who rely on public chargers due to limited off-street parking, as is common in cities and densely populated areas.
Hassle-Free Charging
Drivers can manage all of their charging through The Charge Scheme app with one payment method! As a driver, you will have complete visibility of the money you’re saving by using The Charge Scheme.
One Solution
Drivers can manage their salary sacrifice car payments and charging in one place, ultimately making EV ownership easier.
Cheaper Public Charging
This is the most important aspect of The Charge Scheme. As previously mentioned, public charging can be costly, especially for those without a home charger. Salary sacrificing your charging costs will help drivers save on this aspect of EV charging.
Benefits For Companies
Make Employees Feel Valued
Helping employees save on electric car payments - and now on charging - is a great way to show appreciation and helps attract and retain top talent. After all, happy employees create a happy company.
All-Inclusive Package
Employees can salary sacrifice all of their charging costs along with their car, maintenance and home charger installation. This offering should also boost uptake in the scheme, boosting your employee engagement with benefits.
No Cost To Set Up And Run
Leaving the best until last, The Charge Scheme bolts onto your existing service with no additional cost. Meaning you can offer this great perk to your employees and no extra budgeting is needed!
How Much Can The Charge Scheme Save?
Here’s how much you could save with The Charge Scheme when charging a Tesla Model 3 publicly over a four-year lease as a higher-rate taxpayer.
| Public Charging (Higher Rate Taxpayer) | Charging Costs | How it works |
|---|---|---|
| Total Charging Cost (15,000 miles per annum) | £11,295 | The employee's cost of charging is reimbursed by the business and then sacrificed from gross salary |
| Employee Tax Savings | -£4,743 | Income tax and National Insurance are reduced due to salary sacrifice |
| Net Cost/Employee Pays | £6,552 | Making electric car charging more affordable |
For a four-year lease with 15,000 miles driven annually, the total public charging cost would be £11,295. With The Charge Scheme, employees save £4,743 thanks to reduced Income Tax and National Insurance through salary sacrifice. The business reimburses the charging costs, which are then deducted from the employee’s gross salary. This means the employee only pays £6,552 for charging, making electric vehicle charging far more affordable for drivers.
Whether you’re a company already offering The Electric Car Scheme and ready to launch The Charge Scheme or looking to set up EV salary sacrifice for your employees, simply reach out to our team. Electric car salary sacrifice is the most affordable way to drive electric - and now, with The Charge Scheme, it’s also the most cost-effective way to charge!
Last updated: 06.11.2024
