Great for employeesCut motoring costs by up to 50%
Electric car salary sacrifice is a program offered by many UK employers that allows employees to give up a portion of their salary in exchange for a brand new electric car. This scheme offers a cost-effective and environmentally friendly way for employees to access the benefits of electric vehicles without the upfront costs of purchasing one outright.
Under the scheme, employees agree to a fixed monthly amount to be deducted from their salary before tax, with the savings on income tax, National Insurance and VAT making the car so much more affordable. The car is leased for a fixed period, typically two to four years, and at the end of the lease, the employee has the option to return the vehicle or purchase it outright. The employee's monthly gross salary deduction cover the costs of:
- monthly car lease payment
- servicing and maintenance costs
- replacement tyres
- motor insurance
In addition to the financial benefits, electric car salary sacrifice offers a range of environmental advantages, including reduced CO2 emissions and improved air quality. This makes it an attractive option for those who want to reduce their carbon footprint and contribute to a cleaner, more sustainable future.
Overall, electric car salary sacrifice offers a win-win solution for UK employees and employers alike, providing an affordable and environmentally friendly alternative to traditional vehicle ownership.