The switch to electric vehicles has begun, and there’s no stopping it.
The switch to electric vehicles has begun, and there’s no stopping it. We expect to see more people switching to electric cars as government programs and entire industries adapt to the new government legislation, which aims to eliminate petrol and diesel engines from the market by 2030. It is not a choice but rather a necessity to do this.
The government initiated the salary sacrifice car program to encourage the use of electric cars in UK businesses and minimise the use of internal combustion engines (ICE).
This scheme makes driving an electric vehicle as feasible, affordable, and appealing as possible for drivers of every status. Anyone earning above minimum wage can use the salary sacrifice scheme to help them purchase the car of their dreams for a remarkably affordable monthly payment!
As an employee, you can lease an electric car at a reasonable price with the help of your employer through a salary sacrifice scheme. In a salary sacrifice agreement, you pay for the car and are responsible for it, unlike traditional company car plans, where the company pays for the vehicle.
By paying for a car lease with your salary before taxes, you will avoid paying the personal income tax you would have otherwise been responsible for if you were paid your regular salary.
Even though company cars are nothing new—they have long been a common workplace benefit—the way these deals are structured makes them a particularly intriguing and enticing option for drivers.
A salary sacrifice car lease works similarly to other salary sacrifice benefits. Your employer provides you with a brand-new electric car lease for up to three or four years without any upfront costs in exchange for a portion of your gross salary.
Your overall income drops as a result, which means you pay less in taxes and national insurance and may also lower your tax bracket.
How much salary you can sacrifice may vary according to your employer and the arrangements they offer. There isn’t a set maximum, but you aren’t allowed to cut your pay so much that your earnings are less than the national minimum wage.
When the lease is up, you return the vehicle and pay for any excess damage (beyond normal wear and tear) or excess mileage. The car will then be sold on the used car market by the leasing company, though in some cases, you might have the option to purchase the vehicle when your lease expires.
You can also modify or terminate your salary sacrifice arrangement whenever you’d like.
You could, for instance, pay for a Tesla Model 3 RWD with a 254-mile range and a P11D value of £43,490. Paying via EV salary sacrifice instead of purchasing the vehicle outright could save you just over £20,000 on a 48-month business contract and 8,000 annual miles. Remember that the amount you could save depends on various factors, including the company offering the salary sacrifice program.
Furthermore, you must factor in the BiK (benefit in kind) cost for the duration of the contract. Since 2022, electric car drivers only pay 2% in BiK, a significantly small portion compared to what gasoline, diesel, and hybrid vehicle drivers pay.
Before agreeing to a salary sacrifice arrangement, you first must weigh the benefits and drawbacks because it might hurt other aspects of your finances in the long run. So it’s essential to be informed.
You should also check with your employer to determine whether it will impact your bonuses, pay increases, or other work-related benefits.
PROS
CONS
As an employer, you might initially be sceptical about the scheme because it seems too good to be true. This is partially accurate as the scheme serves as an incentive.
However, from a corporate standpoint, the arrangement generally has no downsides and offers many advantages!
PROS
CONS
Driving and purchasing an electric vehicle offer MASSIVE advantages. However, electric vehicles have their detractors, just like any new technology that enters the market. Transitioning to electric can be daunting enough, and if you add some outdated obstacles, it might be too much for some people to handle.We’ve compiled some of the most common EV myths and concerns to address them and help you decide further.
Untrue. Before entering the market, EVs must comply with strict technical rules, including crash and electrical safety. This means electric cars are safe to drive and charge in various weather conditions.
According to research, the UK has one of the most extensive rapid charging networks in Europe, with over 5,800 rapid chargers and over 31,000 public charging points available across the UK.
You can also use various apps to find the closest charging station in your area. Bonnet is top of the list, a user-friendly app for electric vehicle charging stations offering everything you need at a price well within your means. You never have to drive to an EV charging station to find it crowded or broken.
EV charging is done chiefly overnight at or near home. However, some newer models can charge up to 200 miles in as little as 20 minutes—about the time it takes to drink a cup of tea.
Even without accessible off-street parking, you can enjoy the benefits of owning or driving an electric vehicle. The On-Street Residential Chargepoint Scheme (ORCS) allows local authorities to provide public charging points for residents who don’t have access to private parking.
Additionally, Bonnet has made EV charging accessible by connecting drivers to the best charging networks available.
If you’re ready to compare car lease deals for personal or business use, we’ve rounded up the best electric car leasing deals from the UK’s leading leasing brokers to make your search so much easier.
The Hippo Leasing salary sacrifice scheme is easy to set up and run. Employees can order their vehicle, and the company will deliver it directly to your company address. They offer a wide range of vehicles, including Tesla, VW, Polestar, Mercedes and Nissan.
With Novuna’s electric car salary sacrifice scheme, you will attract new hires and retain your best employees while lowering your carbon footprint and overall transportation expenses.
Novuna will handle all employee administration and advise employers about any agreed additional payroll deductions.
The salary sacrifice scheme from KINTO carries minimal risk and administration and offers comprehensive private and business insurance, online reporting, early termination, gap insurance options and national insurance savings.
Employers will find the company’s arrangement competitive, cost-effective, and HMRC and VAT compliant. When you choose a low-risk, cost-efficient salary sacrifice electric car scheme from Peter Vardy, you help boost employee motivation, retain your existing staff and improve your credibility as an employer. While employees can enjoy a hassle-free alternative to owning an electric car without up-front costs, credit checks, or end-of-term obligations.
With everything taken care of from set-up to scheme marketing, and an additional dedicated point of contact, Zenith’s electric car salary sacrifice arrangement is worthwhile and an excellent way to motivate employees.
Additionally, the programme safeguards your business against any financial risks arising from employee departures or extended absences.
Fleet Evolution aims to offer electric car salary sacrifice schemes from a human resources perspective. The company offers a free workplace charging station for companies with five or more employees who purchase electric cars through salary sacrifice.
With over 20 years of experience providing company cars, Tusker’s salary sacrifice car scheme is popular with the public and private sectors. The company offers one of the most inexpensive ways for employees to drive a brand new, well-maintained and fully insured car for a fixed monthly deduction from their salary.
The company works with many car lease companies to find the best value lease on the market to help businesses and employees benefit from government tax savings. They help people make more environmentally-friendly choices and work to protect businesses.
As a fleet management provider managing over 30,000 vehicles, Fleet Alliance offers solutions for fleets of all sizes and provides an electric car salary sacrifice scheme.
The company works closely with employers to deliver cost-effective salary sacrifice solutions to create a streamlined experience leveraging their experience with scheme modelling, structure and policy.
In partnership with Fleet Evolution, the company follows best practices and delivers the best experiences to provide hassle-free payments. The company provides the latest information, bespoke advice and costs so businesses can choose the right EV lease for their needs.
Partnering with the UK’s most trusted car leasing companies to bring you the best range of EVs at the best price, the company’s car scheme works similarly to the popular bike-to-work scheme.
Under a salary sacrifice scheme, as an employee, you will save 50% of your annual motor expenses through income tax and national insurance savings.
As a climate-positive leasing service and fleet consultancy firm, Fleet Electric supports the long-term adoption of electric vehicles through leasing. The company aims to empower businesses to help their employees go electric through its salary sacrifice scheme. Employees can lease new, fully maintained, insured electric cars for a much lower cost than a personal lease.
Overall, granting employees a government-subsidised lease on an electric car through salary sacrifice is a great perk and a great way to make your company more sustainable.
You can reduce your company’s carbon footprint by offering a well-designed EV salary sacrifice arrangement, demonstrating your commitment to environmental, social, and governance issues. This development appeals to more employees and future employees as more people become increasingly concerned about how the company they work for and their work affect the environment.
Lastly, an effective salary sacrifice scheme will allow employees to save more than a third on a new electric car and help your business cut down on company employee expenses.
Do you own the car after salary sacrifice?
For tax reasons, a salary sacrifice vehicle will qualify as a company car and be considered a kind benefit (BiK). At the end of the contract, an employee may return or purchase the car at the current market value price based on the vehicle’s age and mileage.
Can you have two salary sacrifice cars?
Yes, provided your entire pay salary sacrificed does not go below the national minimum wage and if your employer authorises it.
Does a salary sacrifice car affect your pension?
Yes, entering into any salary sacrifice arrangement that reduces gross pensionable pay will impact the pension you build during that time. Participating in a salary sacrifice scheme affects the number of your final benefits.
What electric car can I get on salary sacrifice?
Many electric car leasing companies offer a wide range of EVs through salary sacrifice, including brands like Tesla, Mercedes, VW, Polestar, and Nissan.
The switch to electric vehicles has begun, and there’s no stopping it.
The switch to electric vehicles has begun, and there’s no stopping it. We expect to see more people switching to electric cars as government programs and entire industries adapt to the new government legislation, which aims to eliminate petrol and diesel engines from the market by 2030. It is not a choice but rather a necessity to do this.
The government initiated the salary sacrifice car program to encourage the use of electric cars in UK businesses and minimise the use of internal combustion engines (ICE).
This scheme makes driving an electric vehicle as feasible, affordable, and appealing as possible for drivers of every status. Anyone earning above minimum wage can use the salary sacrifice scheme to help them purchase the car of their dreams for a remarkably affordable monthly payment!
As an employee, you can lease an electric car at a reasonable price with the help of your employer through a salary sacrifice scheme. In a salary sacrifice agreement, you pay for the car and are responsible for it, unlike traditional company car plans, where the company pays for the vehicle.
By paying for a car lease with your salary before taxes, you will avoid paying the personal income tax you would have otherwise been responsible for if you were paid your regular salary.
Even though company cars are nothing new—they have long been a common workplace benefit—the way these deals are structured makes them a particularly intriguing and enticing option for drivers.
A salary sacrifice car lease works similarly to other salary sacrifice benefits. Your employer provides you with a brand-new electric car lease for up to three or four years without any upfront costs in exchange for a portion of your gross salary.
Your overall income drops as a result, which means you pay less in taxes and national insurance and may also lower your tax bracket.
How much salary you can sacrifice may vary according to your employer and the arrangements they offer. There isn’t a set maximum, but you aren’t allowed to cut your pay so much that your earnings are less than the national minimum wage.
When the lease is up, you return the vehicle and pay for any excess damage (beyond normal wear and tear) or excess mileage. The car will then be sold on the used car market by the leasing company, though in some cases, you might have the option to purchase the vehicle when your lease expires.
You can also modify or terminate your salary sacrifice arrangement whenever you’d like.
You could, for instance, pay for a Tesla Model 3 RWD with a 254-mile range and a P11D value of £43,490. Paying via EV salary sacrifice instead of purchasing the vehicle outright could save you just over £20,000 on a 48-month business contract and 8,000 annual miles. Remember that the amount you could save depends on various factors, including the company offering the salary sacrifice program.
Furthermore, you must factor in the BiK (benefit in kind) cost for the duration of the contract. Since 2022, electric car drivers only pay 2% in BiK, a significantly small portion compared to what gasoline, diesel, and hybrid vehicle drivers pay.
Before agreeing to a salary sacrifice arrangement, you first must weigh the benefits and drawbacks because it might hurt other aspects of your finances in the long run. So it’s essential to be informed.
You should also check with your employer to determine whether it will impact your bonuses, pay increases, or other work-related benefits.
PROS
CONS
As an employer, you might initially be sceptical about the scheme because it seems too good to be true. This is partially accurate as the scheme serves as an incentive.
However, from a corporate standpoint, the arrangement generally has no downsides and offers many advantages!
PROS
CONS
Driving and purchasing an electric vehicle offer MASSIVE advantages. However, electric vehicles have their detractors, just like any new technology that enters the market. Transitioning to electric can be daunting enough, and if you add some outdated obstacles, it might be too much for some people to handle.We’ve compiled some of the most common EV myths and concerns to address them and help you decide further.
Untrue. Before entering the market, EVs must comply with strict technical rules, including crash and electrical safety. This means electric cars are safe to drive and charge in various weather conditions.
According to research, the UK has one of the most extensive rapid charging networks in Europe, with over 5,800 rapid chargers and over 31,000 public charging points available across the UK.
You can also use various apps to find the closest charging station in your area. Bonnet is top of the list, a user-friendly app for electric vehicle charging stations offering everything you need at a price well within your means. You never have to drive to an EV charging station to find it crowded or broken.
EV charging is done chiefly overnight at or near home. However, some newer models can charge up to 200 miles in as little as 20 minutes—about the time it takes to drink a cup of tea.
Even without accessible off-street parking, you can enjoy the benefits of owning or driving an electric vehicle. The On-Street Residential Chargepoint Scheme (ORCS) allows local authorities to provide public charging points for residents who don’t have access to private parking.
Additionally, Bonnet has made EV charging accessible by connecting drivers to the best charging networks available.
If you’re ready to compare car lease deals for personal or business use, we’ve rounded up the best electric car leasing deals from the UK’s leading leasing brokers to make your search so much easier.
The Hippo Leasing salary sacrifice scheme is easy to set up and run. Employees can order their vehicle, and the company will deliver it directly to your company address. They offer a wide range of vehicles, including Tesla, VW, Polestar, Mercedes and Nissan.
With Novuna’s electric car salary sacrifice scheme, you will attract new hires and retain your best employees while lowering your carbon footprint and overall transportation expenses.
Novuna will handle all employee administration and advise employers about any agreed additional payroll deductions.
The salary sacrifice scheme from KINTO carries minimal risk and administration and offers comprehensive private and business insurance, online reporting, early termination, gap insurance options and national insurance savings.
Employers will find the company’s arrangement competitive, cost-effective, and HMRC and VAT compliant. When you choose a low-risk, cost-efficient salary sacrifice electric car scheme from Peter Vardy, you help boost employee motivation, retain your existing staff and improve your credibility as an employer. While employees can enjoy a hassle-free alternative to owning an electric car without up-front costs, credit checks, or end-of-term obligations.
With everything taken care of from set-up to scheme marketing, and an additional dedicated point of contact, Zenith’s electric car salary sacrifice arrangement is worthwhile and an excellent way to motivate employees.
Additionally, the programme safeguards your business against any financial risks arising from employee departures or extended absences.
Fleet Evolution aims to offer electric car salary sacrifice schemes from a human resources perspective. The company offers a free workplace charging station for companies with five or more employees who purchase electric cars through salary sacrifice.
With over 20 years of experience providing company cars, Tusker’s salary sacrifice car scheme is popular with the public and private sectors. The company offers one of the most inexpensive ways for employees to drive a brand new, well-maintained and fully insured car for a fixed monthly deduction from their salary.
The company works with many car lease companies to find the best value lease on the market to help businesses and employees benefit from government tax savings. They help people make more environmentally-friendly choices and work to protect businesses.
As a fleet management provider managing over 30,000 vehicles, Fleet Alliance offers solutions for fleets of all sizes and provides an electric car salary sacrifice scheme.
The company works closely with employers to deliver cost-effective salary sacrifice solutions to create a streamlined experience leveraging their experience with scheme modelling, structure and policy.
In partnership with Fleet Evolution, the company follows best practices and delivers the best experiences to provide hassle-free payments. The company provides the latest information, bespoke advice and costs so businesses can choose the right EV lease for their needs.
Partnering with the UK’s most trusted car leasing companies to bring you the best range of EVs at the best price, the company’s car scheme works similarly to the popular bike-to-work scheme.
Under a salary sacrifice scheme, as an employee, you will save 50% of your annual motor expenses through income tax and national insurance savings.
As a climate-positive leasing service and fleet consultancy firm, Fleet Electric supports the long-term adoption of electric vehicles through leasing. The company aims to empower businesses to help their employees go electric through its salary sacrifice scheme. Employees can lease new, fully maintained, insured electric cars for a much lower cost than a personal lease.
Overall, granting employees a government-subsidised lease on an electric car through salary sacrifice is a great perk and a great way to make your company more sustainable.
You can reduce your company’s carbon footprint by offering a well-designed EV salary sacrifice arrangement, demonstrating your commitment to environmental, social, and governance issues. This development appeals to more employees and future employees as more people become increasingly concerned about how the company they work for and their work affect the environment.
Lastly, an effective salary sacrifice scheme will allow employees to save more than a third on a new electric car and help your business cut down on company employee expenses.
The switch to electric vehicles has begun, and there’s no stopping it.
The switch to electric vehicles has begun, and there’s no stopping it. We expect to see more people switching to electric cars as government programs and entire industries adapt to the new government legislation, which aims to eliminate petrol and diesel engines from the market by 2030. It is not a choice but rather a necessity to do this.
The government initiated the salary sacrifice car program to encourage the use of electric cars in UK businesses and minimise the use of internal combustion engines (ICE).
This scheme makes driving an electric vehicle as feasible, affordable, and appealing as possible for drivers of every status. Anyone earning above minimum wage can use the salary sacrifice scheme to help them purchase the car of their dreams for a remarkably affordable monthly payment!
As an employee, you can lease an electric car at a reasonable price with the help of your employer through a salary sacrifice scheme. In a salary sacrifice agreement, you pay for the car and are responsible for it, unlike traditional company car plans, where the company pays for the vehicle.
By paying for a car lease with your salary before taxes, you will avoid paying the personal income tax you would have otherwise been responsible for if you were paid your regular salary.
Even though company cars are nothing new—they have long been a common workplace benefit—the way these deals are structured makes them a particularly intriguing and enticing option for drivers.
A salary sacrifice car lease works similarly to other salary sacrifice benefits. Your employer provides you with a brand-new electric car lease for up to three or four years without any upfront costs in exchange for a portion of your gross salary.
Your overall income drops as a result, which means you pay less in taxes and national insurance and may also lower your tax bracket.
How much salary you can sacrifice may vary according to your employer and the arrangements they offer. There isn’t a set maximum, but you aren’t allowed to cut your pay so much that your earnings are less than the national minimum wage.
When the lease is up, you return the vehicle and pay for any excess damage (beyond normal wear and tear) or excess mileage. The car will then be sold on the used car market by the leasing company, though in some cases, you might have the option to purchase the vehicle when your lease expires.
You can also modify or terminate your salary sacrifice arrangement whenever you’d like.
You could, for instance, pay for a Tesla Model 3 RWD with a 254-mile range and a P11D value of £43,490. Paying via EV salary sacrifice instead of purchasing the vehicle outright could save you just over £20,000 on a 48-month business contract and 8,000 annual miles. Remember that the amount you could save depends on various factors, including the company offering the salary sacrifice program.
Furthermore, you must factor in the BiK (benefit in kind) cost for the duration of the contract. Since 2022, electric car drivers only pay 2% in BiK, a significantly small portion compared to what gasoline, diesel, and hybrid vehicle drivers pay.
Before agreeing to a salary sacrifice arrangement, you first must weigh the benefits and drawbacks because it might hurt other aspects of your finances in the long run. So it’s essential to be informed.
You should also check with your employer to determine whether it will impact your bonuses, pay increases, or other work-related benefits.
PROS
CONS
As an employer, you might initially be sceptical about the scheme because it seems too good to be true. This is partially accurate as the scheme serves as an incentive.
However, from a corporate standpoint, the arrangement generally has no downsides and offers many advantages!
PROS
CONS
Driving and purchasing an electric vehicle offer MASSIVE advantages. However, electric vehicles have their detractors, just like any new technology that enters the market. Transitioning to electric can be daunting enough, and if you add some outdated obstacles, it might be too much for some people to handle.We’ve compiled some of the most common EV myths and concerns to address them and help you decide further.
Untrue. Before entering the market, EVs must comply with strict technical rules, including crash and electrical safety. This means electric cars are safe to drive and charge in various weather conditions.
According to research, the UK has one of the most extensive rapid charging networks in Europe, with over 5,800 rapid chargers and over 31,000 public charging points available across the UK.
You can also use various apps to find the closest charging station in your area. Bonnet is top of the list, a user-friendly app for electric vehicle charging stations offering everything you need at a price well within your means. You never have to drive to an EV charging station to find it crowded or broken.
EV charging is done chiefly overnight at or near home. However, some newer models can charge up to 200 miles in as little as 20 minutes—about the time it takes to drink a cup of tea.
Even without accessible off-street parking, you can enjoy the benefits of owning or driving an electric vehicle. The On-Street Residential Chargepoint Scheme (ORCS) allows local authorities to provide public charging points for residents who don’t have access to private parking.
Additionally, Bonnet has made EV charging accessible by connecting drivers to the best charging networks available.
If you’re ready to compare car lease deals for personal or business use, we’ve rounded up the best electric car leasing deals from the UK’s leading leasing brokers to make your search so much easier.
The Hippo Leasing salary sacrifice scheme is easy to set up and run. Employees can order their vehicle, and the company will deliver it directly to your company address. They offer a wide range of vehicles, including Tesla, VW, Polestar, Mercedes and Nissan.
With Novuna’s electric car salary sacrifice scheme, you will attract new hires and retain your best employees while lowering your carbon footprint and overall transportation expenses.
Novuna will handle all employee administration and advise employers about any agreed additional payroll deductions.
The salary sacrifice scheme from KINTO carries minimal risk and administration and offers comprehensive private and business insurance, online reporting, early termination, gap insurance options and national insurance savings.
Employers will find the company’s arrangement competitive, cost-effective, and HMRC and VAT compliant. When you choose a low-risk, cost-efficient salary sacrifice electric car scheme from Peter Vardy, you help boost employee motivation, retain your existing staff and improve your credibility as an employer. While employees can enjoy a hassle-free alternative to owning an electric car without up-front costs, credit checks, or end-of-term obligations.
With everything taken care of from set-up to scheme marketing, and an additional dedicated point of contact, Zenith’s electric car salary sacrifice arrangement is worthwhile and an excellent way to motivate employees.
Additionally, the programme safeguards your business against any financial risks arising from employee departures or extended absences.
Fleet Evolution aims to offer electric car salary sacrifice schemes from a human resources perspective. The company offers a free workplace charging station for companies with five or more employees who purchase electric cars through salary sacrifice.
With over 20 years of experience providing company cars, Tusker’s salary sacrifice car scheme is popular with the public and private sectors. The company offers one of the most inexpensive ways for employees to drive a brand new, well-maintained and fully insured car for a fixed monthly deduction from their salary.
The company works with many car lease companies to find the best value lease on the market to help businesses and employees benefit from government tax savings. They help people make more environmentally-friendly choices and work to protect businesses.
As a fleet management provider managing over 30,000 vehicles, Fleet Alliance offers solutions for fleets of all sizes and provides an electric car salary sacrifice scheme.
The company works closely with employers to deliver cost-effective salary sacrifice solutions to create a streamlined experience leveraging their experience with scheme modelling, structure and policy.
In partnership with Fleet Evolution, the company follows best practices and delivers the best experiences to provide hassle-free payments. The company provides the latest information, bespoke advice and costs so businesses can choose the right EV lease for their needs.
Partnering with the UK’s most trusted car leasing companies to bring you the best range of EVs at the best price, the company’s car scheme works similarly to the popular bike-to-work scheme.
Under a salary sacrifice scheme, as an employee, you will save 50% of your annual motor expenses through income tax and national insurance savings.
As a climate-positive leasing service and fleet consultancy firm, Fleet Electric supports the long-term adoption of electric vehicles through leasing. The company aims to empower businesses to help their employees go electric through its salary sacrifice scheme. Employees can lease new, fully maintained, insured electric cars for a much lower cost than a personal lease.
Overall, granting employees a government-subsidised lease on an electric car through salary sacrifice is a great perk and a great way to make your company more sustainable.
You can reduce your company’s carbon footprint by offering a well-designed EV salary sacrifice arrangement, demonstrating your commitment to environmental, social, and governance issues. This development appeals to more employees and future employees as more people become increasingly concerned about how the company they work for and their work affect the environment.
Lastly, an effective salary sacrifice scheme will allow employees to save more than a third on a new electric car and help your business cut down on company employee expenses.
Do you own the car after salary sacrifice?
For tax reasons, a salary sacrifice vehicle will qualify as a company car and be considered a kind benefit (BiK). At the end of the contract, an employee may return or purchase the car at the current market value price based on the vehicle’s age and mileage.
Can you have two salary sacrifice cars?
Yes, provided your entire pay salary sacrificed does not go below the national minimum wage and if your employer authorises it.
Does a salary sacrifice car affect your pension?
Yes, entering into any salary sacrifice arrangement that reduces gross pensionable pay will impact the pension you build during that time. Participating in a salary sacrifice scheme affects the number of your final benefits.
What electric car can I get on salary sacrifice?
Many electric car leasing companies offer a wide range of EVs through salary sacrifice, including brands like Tesla, Mercedes, VW, Polestar, and Nissan.
