The Electric Car Scheme
Offering an electric car salary sacrifice scheme is fast becoming an employee benefit that is a must-have for companies competing for talent. In fact, some have said it is the best employee benefit introduced to the UK since the start of paid time off in 1938!
So – how does it work, and how are you able to save yourself 30-60% on any electric car leased through an electric car scheme?
How does the Electric Car Sacrifice Scheme work?
It’s relatively straightforward:
- Employees give up (sacrifice) their pre-tax (gross) salary
- Their company leases an electric car for the employee to drive
- Employees drive the car for business or personal use
This means that the employee pays for the car before income tax and national insurance are deducted. The result is a 30-60% saving for employees (after paying a small benefit in kind tax) – the exact savings depend on your tax rate.
The other benefits of offering a salary sacrifice scheme for employers and employees are obvious once you have taken a bit of time to fully understand them.
Employees get all the best electric cars, at the best price
Save 30-60% on any electric car
By paying out of your gross salary before tax, salary sacrifice schemes save you between 30% and 60% on the cost of your electric car, maintenance, insurance and charging point installation. The exact savings depend on your marginal tax rate.
You can calculate your savings using this handy calculator:
Access any electric car, on any lease
The savings are not tied to only one specific lease company or one type / brand of car or lease deal. The Electric Car Scheme helps you access the savings on any lease deal on the market – and helps you setup the lease with the lease company that offers the best value and service. This enables you to get a great deal!
Expert guidance all the way
Salary sacrifice schemes are a great way to make the switch to your first electric car. The team at The Electric Car Scheme offer helpful tips and guidance to make this easier for you. Their team help select the electric car that best meets your needs and guide you through the process.
You are now wondering about the catch for the employer. Well, the short answer is that there isn’t one!
Your employer is the key to this benefit, and it’s at no cost or risk to them.
Companies supercharge employee benefits with government tax savings
The very best employee benefit, without a cost to the company
The benefits of salary sacrifice schemes to employees are obvious – and they make companies that offer them a very popular employer!
Companies are also able to benefit, and are typically able to offer salary sacrifice to their staff at no setup cost – and schemes like The Electric Car Scheme ensure there are no out of pocket costs for employers, as any fees charged are fully offset by the company tax savings.
Improved talent attraction and retention
As employees can save thousands of pounds through salary sacrifice, offering an employee benefit like The Electric Car Scheme can make a big difference in the competitive recruitment market, and in keeping your team engaged and loyal. Likewise, electric car salary sacrifice is also a strong employee reward tool, helping you look after your valued staff.
Protection against unwanted risks
This is where not every salary sacrifice scheme is the same. Typically there are risks of unwanted and unplanned costs if employees enrolled on salary sacrifice leave the company.
Early exit fees for lease cars can make this a blocker to offering a benefit like The Electric Car Scheme – which is why the scheme is setup to protect both the company and employee against these risks.
Supported all the way
Some salary sacrifice schemes just supply you with the electric car – and that’s it – they then leave you to it which can be frustrating. The Electric Car Scheme supports you with payroll, finance and HMRC administration to make it simple to offer the benefit to your employees.
Reach your environmental goals
Achieving net zero emissions as a company is also made more achievable when your staff travel to and from work in electric cars. It shows you are serious about achieving Net Zero, and helps lower your carbon footprint, one car at a time. Every little helps!
For employers, it’s the best kept secret employee benefit on the market today.
Find out more about how to setup an electric car scheme for your staff here:
