EV Salary Sacrifice
Discover the power of full
electric vehicles
EV salary sacrifice
The United Kingdom salary sacrifice scheme is a benefit on the rise, this scheme allows employees to exchange part of their gross salary for a brand-new car, with everything included from maintenance to tyres to insurance. As they pay from their pre-tax salary, their take-home pay is reduced, meaning they save on their monthly tax and National Insurance contributions.
Across all benefit areas, employers have been adding real value to their rewards proposition by using their corporate buying power, coupled with attractive tax regimes, to save employees money on items they buy every day. In most cases, there is no negative impact on the employer as this is simply a way of helping employees.
Our offerings
Benefits for the employer
The main advantage to employers for implementing salary sacrifice car schemes are the savings they make in National Insurance Contributions (NICs). As an employer, you pay NIC contributions on employees’ salaries but benefits such as car salary sacrifice schemes or pension contributions are exempt.
Benefits for the employee
The idea behind salary sacrifice is a simple one; you give up part of your salary and, in return, your employer gives you non-cash benefits such as a car. You save on income tax and National Insurance contributions (NIC) when you buy a car through your employer. You save money because part of your salary is used to pay for the car every month, rather than paying large upfront costs.
Benefits for the enviroment
As the owner of an electric vehicle, you will be less dependent on fossil fuels. Your transportation will also be emitting 30% less carbon dioxide. Recharging an electric car will not add a significant amount to your energy bills. In fact, you will be spending around the same amount you would if you had 4 plasma TVs in your home, running 24/7.