What is an electric car salary sacrifice scheme?
Electric car salary sacrifice is a scheme that allows employees to sacrifice a portion of their salary in exchange for the use of an electric car. This scheme is becoming increasingly popular as more and more companies look for ways to reduce their carbon footprint and promote sustainable transportation.
Electric car with no deposit
One of the main benefits of electric car salary sacrifice is that it allows employees to drive a brand new electric car without having to pay for it upfront. Instead, the cost of the car is spread out over a period of time, typically three to four years, and is taken out of the employee's salary in the form of pre-tax deductions. This means that the employee does not have to pay any income tax or national insurance contributions on the portion of their salary that is used to pay for the car.
Reduce overall cost of the car
Another benefit of electric car salary sacrifice is that it can help to reduce the overall cost of driving an electric car. Electric cars are typically more expensive to purchase than traditional petrol or diesel cars, but they are cheaper to run and maintain. This means that, over time, an electric car can save the employee money on fuel and maintenance costs.
Reduce carbon footprint
In addition, electric car salary sacrifice can also help to reduce the company's carbon footprint. Electric cars produce no emissions and therefore do not contribute to air pollution. This can help to improve the company's reputation and attract environmentally conscious customers and employees.
Why sign up to the best salary sacrifice scheme?
Electric car salary sacrifice is a great way for companies to promote sustainable transport and for employees to drive a brand new electric car without having to pay for it upfront. It helps to reduce the cost of driving an electric car, and can also help to reduce the company's carbon footprint.
How does electric car salary sacrifice work?
Your employer leases an electric car of your choice on your behalf, you receive the car (as a benefit) in exchange for a portion of your salary. You are able to save 30-60% on any electric car as your sacrificed salary is not taxable.
For receiving this benefit, you are subject to an electric car Benefit in Kind (BIK) tax set by the HMRC. This is currently set at a low 2% until 2025, when it will increase by 1% each year until 2028.
See how much you could save on an electric vehicle with our salary sacrifice car calculator
