Salary sacrifice car schemes benefit both your employees and your business

 

How does electric car salary sacrifice work?

Our electric car salary sacrifice scheme is possibly the most advantageous way to offer company cars, for both employer and employee.

Salary sacrifice works best for fully electric cars as they offer particularly impressive BiK savings. You lease a zero-emission company car on corporate terms and your employee sacrifices from gross salary to pay for the lease, including insurance, which generates monthly NIC savings for you. As a result, you both save money.

Salary sacrifice helps reduce your carbon footprint whilst offering a valuable benefit that is available to all employees thereby increasing engagement, motivation and retention. It also reduces the risk inherent in grey fleet as all vehicles driven on company business will be reliable and fully maintained.

Benefits for employers
Benefits for employees

 

Electric Cars Salary Sacrifice

Why Fleet Alliance?

We work closely with employers leveraging our experience with scheme modelling, structure, and policy, combined with our multi-bid funding solution, to deliver cost-effective electric car salary sacrifice solutions that are attractive and easy to manage for both employers and employees.

The key reasons for choosing Fleet Alliance:

  • Our flexible scheme offers a solution for fleets of all sizes
  • Compared to sole supply, our multi-bid funding solution delivers significant savings to you and your drivers
  • Flexibility to choose the lifestyle risks you wish to mitigate against, further reducing costs
  • Our electric car salary sacrifice solutions are simple, flexible and robust
  • Free unbiased consultation using our market-leading cost-benefit analysis software
  • Easy to manage using our cloud-based fleet management solution
  • Our award-winning fleet management tools ensure administration is easy
  • Independent and impartial expertise from a multi-award-winning fleet management provider

 

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.

Salary Sacrifice FAQ

Salary sacrifice calculator

We also provide exclusive access to our easy-to-use online salary sacrifice calculator that helps demonstrate the potentially significant savings available to employees and employers.

Salary sacrifice and electric cars

Electric cars are exempt from the Optional Remuneration Arrangements (“OpRA”) legislation, which ordinarily restricts the tax and NIC savings available via salary sacrifice. Therefore, salary sacrifice is particularly effective for fully electric cars as the BIK tax rate for these cars is just 2% in 2022/23 and is capped at the same 2% until the end of the 2024/25 tax year.

 

Changes in National Insurance and salary sacrifice

Salary sacrifice schemes based on electric vehicles have become more attractive to companies following the Government’s announcement of a National Insurance levy of 1.25% that was introduced from April 2022/23.  While the increase has affected both employers and employees, the impact of the rise can be mitigated for drivers on EV salary sacrifice schemes.

 

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 2022/2023 or view our most popular questions below.

Can I lease an electric car with salary sacrifice?

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.

Is a salary sacrifice car worth it?
How does salary sacrifice work?
Do hybrid cars qualify for the electric car salary sacrifice scheme?
What electric cars are available on salary sacrifice?
Do I need to tell HMRC when taking a car on salary sacrifice?

 

 

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