Salary Sacrifice for Electric Cars Salary Sacrifice for EV's
The rising cost of living is impacting many, including employers, and employees are increasingly looking to their employers for support. This is where salary sacrifice car schemes can play a significant role in your benefits strategy. These schemes help attract and retain top talent while allowing employees to save 30-60% on an electric car, making environmentally friendly vehicles more accessible and affordable.
What is a salary sacrifice car scheme?
Salary sacrifice is an arrangement between employers and employees where an employee 'sacrifices' a portion of their gross salary in exchange for non-taxable benefits such as retirement savings, childcare support, bicycles, or, in this case, an electric car lease.
This setup not only reduces the employee's income tax and national insurance contributions but also provides significant savings. Through salary sacrifice, employees can save between £5,000 to £15,000 on the cost of their car, making it a highly attractive and cost-effective benefit. This scheme not only benefits employees financially but also promotes environmentally friendly commuting options, aligning with sustainability goals and enhancing the overall benefits package offered by employers.
How does an electric car salary sacrifice scheme work?
EV salary sacrifice allows you to save between 30-60% on any electric car of your choice. By agreeing to have a portion of your pre-tax salary deducted each month to cover the car cost, you can significantly reduce your expenses. Simply choose the car you want, add any extras, and drive away while saving thousands of pounds.
The employer arranges a lease for an electric car on behalf of their employee.
Employees receive the car as a benefit, with the employer providing it in exchange for the employee's agreement to maintain the vehicle and allocate a portion of their gross salary to pay for it.
The sacrificed salary is tax-free, resulting in significant savings amounting to thousands of pounds. Employees reduce the cost of the lease by paying from their salary before taxes are deducted.
A car leased through a salary sacrifice scheme qualifies as an employee benefit and is categorised as a "company car." Consequently, a small Benefit-in-Kind (BiK) tax is applicable, calculated based on three factors: the car's CO2 emissions level, its P11D value (on-the-road price), and the employee's personal tax bracket.
Gateway2Lease’s EV Salary Sacrifice Scheme
Given the growing popularity of electric car salary sacrifice in the market, we have partnered with one of the UK’s leading salary sacrifice schemes, The Electric Car Scheme to offer our clients the ability to access this popular employee benefit.Although it is possible to use salary sacrifice to lease any car in the market, using this scheme to lease an electric car allows you to maximise savings. This is because electric cars produce zero tail-pipe emissions, which means they are subject to lower BIK tax (2% currently). The BIK tax for conventional petrol and diesel cars can be as high as 37%.
Put simply, through salary sacrifice, you can save between 30-60% on a new electric car, compared to a personal lease!
About the Electric Car Scheme
Save 30-60% on any electric car through salary sacrificeWith the Electric Car Scheme, you will receive the best prices on electric cars available in the market, unrivalled protection against unexpected costs, and a trusted 5* service that goes above and beyond your expectations.
Want to learn more about The Electric Car Scheme? Visit their website here and get your team on their personal journeys to Net Zero.
What are the benefits of leasing a car using the salary sacrifice scheme?
Employer benefits of a salary sacrifice car lease
- A valuable staff benefit that can help you attract and keep the best employees.
- Employees traveling in well-maintained and fully insured vehicles reduce the risk associated with 'grey fleet' and provide both safety for your team and peace of mind for you.
- Eco-friendly options will reflect well on your company and reduce additional costs such as congestion charges.
- Employers will not need to offer consumer credit to their employees on these schemes.
Employee benefits of a salary sacrifice car lease
- Drive a new vehicle without a large initial payment.
- Full maintenance, breakdown cover and road tax included.
- Insurance cover provided by the employer.
- Save on income tax and national insurance.
- Flexible contract terms to suit your requirements.
- A wide range of cars to choose from.
- No credit checks on your file.
Leasing electric cars through salary sacrifice
The popularity of electric vehicles has been growing rapidly and the recent high costs and shortages in petrol and diesel have made them even more attractive. A vehicle you can fill up overnight at home, more eco-friendly and with lower running costs. What’s not to like?
This is why our electric car lease salary sacrifice scheme offers a great range of electric vehicles that come with even further benefits to both employer and employee including a demonstration of eco-friendly practices by the company, lower running costs, additional tax incentives, access to clean air zones, future-proofing and enhanced employee well-being.
Salary sacrifice car lease deals – manufacturers at Gateway2Lease
We are able to to provide salary sacrifice leases for electric vehicles from every brand available in the UK.
