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Go Electric For Cheaper!

Salary sacrifice schemes allow you to go electric for cheaper - beneficial for both employers and employees.

What is Salary Sacrifice? 

Salary sacrifice schemes allow employers to offer an attractive and cost-effective benefit to their employees which is HMRC and VAT compliant.

The electric car salary sacrifice scheme allows employees the opportunity to drive a brand-new, fully insured and maintained electric car for significantly less than if they leased one privately.

The scheme works in the same way as other salary sacrifice incentives such as childcare or cycle-to-work and has been designed to help transition more company car drivers from conventional to electric cars.

Without Salary Sacrifice
With Salary Sacrifice

How does Salary Sacrifice work?

An employer will engage with a vehicle leasing company (e.g. Peter Vardy Leasing) and arrange the lease of a pure-electric car at an agreed rate on behalf of their employee. The employer provides the car to the employee as a company car in return for a salary contribution each month, otherwise known as a salary sacrifice.

The cost of the car is deducted from the employee’s gross salary, meaning their income tax and National Insurance Contributions (NIC) are calculated based on the lower salary amount. Effectively, the employee will pay lower contributions towards income tax and National Insurance each month.

And it’s not only employees who benefit from cost savings. Employers will also pay reduced NIC each month as they will be paying their employees based on the lower salary amount, after the cost of the car is taken.

What are the benefits for an employer?

  • Reduced business National Insurance Contributions (NIC)
  • An attractive employee benefit without increased costs to your business
  • Lower your fuel expenses as fewer conventional cars are used for business trips
  • Encourage cash allowance “drivers” back into company cars
  • Fully maintained and dependable cars reduce the risks associated to grey fleets
  • Helps support your Environmental, Social and Governance aspirations
  • A valuable tax-efficient benefit that is available to all employees
  • Increases employee engagement, motivation and supports retention
  • Enhances your credentials as a recruiter for new talent

What are the benefits for employees?

  • Access to a brand-new electric car at a fraction of their normal cost
  • Significant income tax and National Insurance savings
  • No up-front costs, credit checks or end of term obligations
  • Transparent and fixed pricing for the duration of the term
  • Significantly lower your “fuelling” costs by switching to electric
  • Flexible mileage options and contract duration to suit your lifestyle
  • Maintenance, insurance and breakdown cover included
  • Reduce your carbon footprint

If you would like further information relating to the electric car salary sacrifice scheme, please fill out the Enquire Now form below and a member of the team will contact you shortly.

Enquire Now

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