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Once you have opted to set up a salary sacrifice scheme for your business, your employees will be able to choose from a list of approved electric cars.

After an employee selects a vehicle, you will lease it from the leasing company, through a business contract hire agreement, normally lasting between two to four years. To cover the cost of the monthly payments, your finance department will deduct the amount from the individual’s monthly salary and pay the leasing company.

A company car allowance is where you add a lump sum to an employee’s salary which they use towards a new car - both buying or leasing, plus running costs. The staff member is responsible for sourcing, maintaining and insuring the vehicle – think of it more like regular personal ownership.

Unlike salary sacrifice, the additional allowance is taxed at the same rate, so your staff don’t benefit from reduced income tax and National Insurance contributions. However, with a company car allowance, there’s no BiK tax to pay.

Setting up a salary sacrifice is completely free for your business and will net your employees savings of up to 40% compared to leasing or buying outright.

As an employer, you’ll also make financial savings on your company National Insurance contributions.

For employees, electric car salary sacrifice schemes are a great perk, allowing you to get behind the wheel of the latest vehicle for a fraction of the cost.

• Income tax and NIC: Costs will be deducted from your pre-taxed salary meaning your taxable income is reduced.
• All-inclusive packages: Road tax and maintenance – and sometimes insurance - can all be included in your monthly payments. Plus, you’ll be saving on not having to pay for petrol and diesel if you switch to an EV.
• No upfront costs: There’s no large deposit or down payment requirement before you start driving.
• No credit check: As the lease is managed as a business lease through your company, there’s no impact on your credit rating with salary sacrifice.
• Fixed monthly payment: Costs are fixed for the duration of the lease, so you can easily budget.
• Vehicle choice: There’s plenty of options available, plus you can upgrade every two, three or four years (depending on contract length) and they can be driven for both personal and business use.
• No ownership: You don’t have to worry about residual values or selling a vehicle when you want to change.
• Making the switch: Electric cars are expensive to buy outright but through a salary sacrifice scheme, you can afford to make the switch at a fraction of the cost. Home charger installation is often included too.

The incentive for an employee to lease an electric car through their company is an obvious one, but electric car salary sacrifice schemes are increasingly popular with employers, too.

And what’s even better is that there is absolutely no cost to set up the scheme.

• Tax savings: As well as employee NIC being reduced, employers will make financial savings on their company contributions.
• Staff benefit: Offering a salary sacrifice scheme is a great perk and will help recruit and retain the best talent.
• Company reputation: Opting for an electric vehicle scheme will reduce your overall carbon footprint, while many customers are keen to see that the businesses they are investing in are making positive environmental changes.
• Car maintenance: Salary sacrifice reduces your “grey fleet” risk and ensures your staff are driving safe, smart and well-maintained cars. That’s both an ethical consideration and good for company morale.

Electric car salary sacrifice schemes are great for both employers looking to recruit and retain the best talent, as well as employees who can take advantage of the huge financial benefits.

Salary sacrifice means trading in a portion of your pre-taxed annual salary in return for goods or services - in this case a brand new electric car.

Employee schemes have been popular for years with companies looking to offer generous staff benefits and often include healthcare, gym membership or increased pension contributions. By using salary sacrifice, it allows employees to make savings on income tax and National Insurance Contributions (NIC).

Most employers will be able to set up a salary sacrifice scheme, so long as employees agree to an amendment to their contract.

Not all of your employees may be eligible for the electric car salary sacrifice scheme. For example, it’s common for companies to require that employees are employed on a full-time basis and in possession of a valid driver’s licence, as a minimum.

There’s plenty of reasons to choose us, not least the fact that Á«»¨Ö±²¥ Leasey offers a wide range of electric car choices.

Our scheme offers the following in a single deduction from your monthly salary:

• Monthly lease price
• Fully comprehensive insurance for you and additional drivers
• All annual services, including replacements – e.g. wiper blades and brake pads
• All planned replacement tyres
• Annual breakdown cover

Home wallbox installation is offered as an add-on. The cost will be spread over the contract length with the instalment added to the one single deduction.