Discover how electric car salary sacrifice can help your businesses address some key company challenges?
Salary Sacrifice is based on a fully maintained contract hire and the employee pays the company for the vehicle with their gross pre-tax salary. Fully comprehensive insurance is also usually added which again is paid for by the employee from their pre-tax salary.
The car is still deemed as a benefit so it works best with fully electric vehicles due to their low benefit in kind rates - 4% in the tax year 2026-2027.
The business will also make Class 1 NIC savings because of the salary reduction and you decide how much of this you pass to the employee - however much you contribute will make the cost even less to the employee.
Most importantly - it doesnt cost the company to set-up ... implement or operate the scheme - and there are no service fees administered.
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Our scheme is designed to be simple ... throughout set-up, implementation and in-life.
Our portal provides all payroll reports ... enables the business to approve orders and review all current leases.
We provide all materials and assets for communications and awareness from implementation, launch and throughout the life of the scheme and where possible and feasible will deliver regular in-person "pop-up" surgeries to speak with employees and answer their questions.
Running a scheme should therefore required no more than 15 minutes administration time per month.
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Firstly a salary sacrifice scheme is recognised as a great employee benefit that enables your staff to make real and significant savings on an electric vehicle - especially important when costs around individuals continue to rise.
It is recognised as a significant tool to aid and improve both staff retention and engagement. Around 75% of employees choose to stay in a role longer because of great benefits and a fully engaged work force performs better and has a tangible and positive impact to the bottom line of the business.
Keeping the right staff longer saves on recruitment and maintains productivity.
Additionally - around 55% of employees are motivated by non-financial benefits - making your company more attractive to the best talent in your sector.
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The company can also benefit financially ...
If you currently provide a cash allowance to your employees a salary sacrifice scheme will extend their buying power and also reduce your mileage re-imbursements from 45p [ first 10k ] to 7p per mile.
Because the employee reduces their salary the company also makes Class 1NIC savings - most will will pass these savings on to the employee to further reduce the cost of their vehicle but the choice is yours.
All car agreements include fully comprehensive insurance for the employee ... automatically including business use - giving you the added comfort and removing the risk of them not having adequate insurance cover for travelling on company business.
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