Electric Car Salary Sacrifice
With the Fleet Alliance salary sacrifice scheme you get access to the best consultative provider on the market, plus over 20 years of award-winning experience and expertise.
A salary sacrifice car scheme will benefit both your employees and your business
Salary Sacrifice for Electric Vehicles is the fastest-growing vehicle funding method at the moment. Which probably explains why you are here.
Businesses like the idea because it offers a significant decarbonisation step on any Environmental, Social and Governance (ESG) agenda. Employees like it because they can drive an electric vehicle (EV) at a cost significantly below the price they would have to pay personally. Perhaps, just as importantly, there’s no impact on their personal credit lines.
And with so much demand for salary sacrifice, it’s little wonder that a growing number of companies are offering electric car salary sacrifice as an employee benefit.
Jump to a section
- Why Fleet Alliance?
- How does electric car salary sacrifice work?
- What comes with the Fleet Alliance salary sacrifice package?
- The wider benefits of salary sacrifice
- Benefits to your employees of salary sacrifice
- Benefits to your employers of salary sacrifice
- Frequently asked questions about electric car salary sacrifice
- Is Salary Sacrifice right for your business?
- Salary Sacrifice guide
- Take your next step toward Net Zero now
Why Fleet Alliance?
The key point here is that you receive consultancy on setting up your salary sacrifice scheme. It’s configured how you want it.
We don’t provide an off the shelf scheme that straitjackets your requirements and confines what you want to do for your employees.
We have been providing award-winning fleet consultancy for 20 years, from SMEs to large corporates, and the same approach applies to salary sacrifice. In addition, we can also look after your company fleet of cars and vans, too, should that be required.
There is also flexibility. In our experience, the most significant issue for employers is the question of early termination. What happens if an employee decides to leave? Naturally, it’s a concern.
Our approach is to tailor it so your business feels comfortable with the policy. It might be, for instance, that you ‘bank’ the National Insurance savings as a contingency fund. Or if the finance department wants it to be fully outsourced, then we also provide you with Early Termination Insurance (ETI). It might be that you wish to reallocate the car within the business – well that can be accommodated as well. So flexibility is key to our approach.
How does Electric Car Salary Sacrifice work?
Drivers sacrifice part of their gross salary for an electric lease car. Payments are taken from a driver’s gross salary, which reduces the income tax and National Insurance contributions (NIC) payable by the driver.
There is still a benefit in kind tax to pay, but because the tax on electric cars is so low, it remains an extremely viable option and highly tax-effective. It is also cheaper for the employee than leasing a car personally.
So what comes with the Fleet Alliance salary sacrifice package?
Your own scheme account manager AND employees get an expert and personal EV scheme advisor.
Salary sacrifice calculator with a vehicle chooser to understand all savings, as well as costs.
A portal for employees to choose their EV, and one for the employer to set any required parameters.
We offer each vehicle to our panel of 11 funders, so you’re employees are guaranteed the best price.
Expertise in EVs
We’re a member of EV100, a global group of leading companies accelerating the transition to EVs.
Award-winning account management, backed by 12 years as a platinum certified a Great Place To Work.
We will match your electric vehicles to the right EV chargers, with installation included too*.
Better grey fleet
If you already operate a ‘grey fleet’, salary sacrifice offers a route to a stronger duty of care policy.
The wider benefits of salary sacrifice
In a market that is short on qualified people, electric car salary sacrifice plays a significant role in the retention of employees and in attracting new talent to the workplace.
It also plays an important role in the decarbonisation of the workplace as part of your company’s ESG strategy on sustainability, with a clear demonstration of your commitment to lowering the company’s environmental footprint.
While the scheme is cost neutral and easy to run and implement, thanks to our dedicated account managers, there are also potential National Insurance savings to be made by introducing an electric car salary sacrifice scheme which can help the bottom line.
But salary sacrifice is about offering meaningful benefits to your employees that is cost-saving all round. And with the Fleet Alliance electric car salary sacrifice scheme, you have the best consultative provider on the market.
The benefits to employees of salary sacrifice
- Cost effective access to a brand new electric car
- Income tax, NIC and VAT savings available
- No upfront costs or credit check required
- Flexible mileage and terms
- Maintenance and breakdown cover included
- Fully comprehensive, fixed-term, car insurance provided for up to 3 drivers
The benefits to employers of salary sacrifice
- Provides an attractive employee benefit without increasing costs
- Generates monthly NIC savings
- Reduces fuel costs by encouraging grey fleet drivers into more cost effective electric cars
- Reliable and fully maintained cars helps address duty of care responsibility to grey fleet drivers
- Helps reduce fleet carbon footprint by encouraging the uptake of electric vehicles
- Complements existing employee benefits
- Increases employee engagement which enhances motivation and retention
Frequently Asked Questions
We have assembled a list of common questions that outline the benefits of participating in the Electric Car Salary Sacrifice Scheme, how it works in practice and aspects you should be aware of.
Is an electric car salary sacrifice scheme right for your business?
Except in very limited circumstances, salary sacrifice is not intended to be a direct replacement for the company car scheme. But, for employers wishing to enhance the benefits offered to all staff, or attract employees who have opted for a cash allowance back to the company car to tackle the duty of care risks inherent in their grey fleet, salary sacrifice is an attractive solution that complements an existing company car scheme.
We have the expertise to help employers fully appraise their fleet; looking at eligible employees, staff turnover, and other key factors.
We offer a free consultation, using our market-leading cost-benefit analysis software, to provide an unbiased recommendation regarding the decision an employee or employer should make.
A quick guide to salary sacrifice
Read our easy guide to electric car salary sacrifice for 2023/2024 or view our most popular questions below.
Yes. Our electric car salary sacrifice scheme has been specifically optimised for electric cars. You can drive the newest models with the greatest range and latest technology for less than leasing an electric car privately and with no credit check or up-front payment.
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