It’s pretty simple, your company opts into a salary sacrifice scheme for their workers. The idea is that the amount of salary sacrificed is used towards the car payment, with a lower gross salary and the money that is used towards the car being taken pre-tax, it results in employees making huge tax savings.

Salary sacrifice car schemes are where the employee gives up some of their salary which gets removed monthly, and the money goes towards a brand new electric vehicle.

For more information, why not look through our helpful blog post covering everything on salary sacrifice.

Access to a brand new electric car and tax savings. With an electric car salary sacrifice scheme, you can have a top-of-the-range electric vehicle, this will save you money on running costs, and maintenance costs. With the salary sacrifice scheme, you also make huge savings on tax payments.

Because you take home a lower salary, you pay less tax and national insurance contributions. On top of that, if you choose electric vehicles then you will pay even less money overall. Electric cars, if they are fully electric, don’t need to be taxed and they save you a lot of money on fuel compared to petrol and diesel cars. View some of the electric vehicles available with salary sacrifice.

There are advantages and disadvantages but the main disadvantage is you take home a pay cut, but all other methods of buying a car would need you to either save money out of your monthly paycheck so you can pay for it upfront or to take out a lease or other monthly payment plan; hence, taking the money directly from your salary would be the same anyway. The major benefit is that this method can save your money on your tax and national insurance payments, and can get you a brand new electric car for way less money than other methods.

Yes, simply, yes! If you want access to a brand new vehicle, with no big upfront costs and the possibility of less tax and national insurance contributions, then salary sacrifice car schemes are the only choice that makes this possible.

You can contact us here at Fleet Evolution if you would like to enquire about setting up an electric car scheme for your employees. It is a great incentive for your team. Having access to a company car allows your employees to have comfort when commuting to work. Other salary sacrifice schemes such as pension packages are often offered, but a car scheme gives employees an instant benefit that can make their day-to-day life easier.

Electric cars are often easier to drive as they are automatic and very smooth, they also have a fast acceleration, and respond to the driver nicely. Electric cars are also better for the environment and allow drivers to make savings on road tax and fuel costs due to the long mileage they can consume and just off one charge.

Electric cars are still relatively new, which means they are still more expensive than other vehicles. This means that the second-hand market is smaller and holds its value a little more than fuel cars. However, with a salary sacrifice scheme, you can have a brand new vehicle with no big upfront payments. It is one of the most cost-effective methods for acquiring a new electric vehicle.

You can’t claim back the electricity. However, charging an electric car is far cheaper than buying fuel, the majority of electric cars produced now cover a long range of mileage compared to rival petrol cars. Interested to know what the longest range of electric cars are? You can also find free charging ports at specific locations across the UK.