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The first step in checking if you’re eligible is to find out if your employer has enrolled in the scheme yet or not. If not, you can ask them if it’s something they’d be interested in. 

If they are signed up, have a read through the terms and conditions documents that we’ll share to find full details on eligibility criteria. 

One important point to note is that a salary sacrifice agreement cannot reduce your cash earnings below the National Minimum Wage level. So if this was the case, you’d unfortunately not be eligible. If you’re on variable pay and are likely to see less salary in certain months, this may also affect you. 

Most companies will also expect any employee to be full-time and of course, have a valid driver’s licence. 

With the Á«»¨Ö±²¥ Leasey Salary Sacrifice Scheme, there is the option of an early termination if your circumstances change or you no longer wish to be part of the scheme.

Salary sacrifice agreements like ours can be ended early by choice, or by other reasons such as resigning, retiring, being dismissed or being made redundant.

We also offer Early Termination Protection. This clause enables you to exit the agreement without incurring any significant outstanding expenses. Plus, it safeguards employers from the hassle of pursuing payments from former employees.

If the salary sacrifice arrangement is ended early, the expense would be equal to either three months' worth of outstanding payments or half of the remaining payments, whichever option is cheaper.

If you like the sound of the Á«»¨Ö±²¥ Leasey Salary Sacrifice Scheme but your employer is not yet signed up, you can help persuade them with the vast array of benefits that it brings for both the employer and the employee. For example, your employer can enjoy advantages such as:

• Finance savings via lower National Insurance contributions
• Á«»¨Ö±²¥ Leasey will do all the legwork in setting up and managing the scheme
• Reduce their grey-fleet risk
• Improve their eco-credentials and hit sustainability targets
• It’s a brilliant staff perk that can boost morale and save both sides money
• There’s no cost for the employer to set it up or run

By presenting them with this information, they’ll surely see that it’s a no-brainer to join the scheme!

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.

As a general rule, you can save up to 40% on the cost of personal leasing with our electric car salary sacrifice scheme.

The higher your tax rate, the more savings that can be made too. For example, people in the 40% tax rate will save more than those in the 20% tax rate.

For example, the standard costs of a could be over £500 per month, but by leasing it via a salary sacrifice scheme you’ll pay closer to £300 thanks to the big reduction in income tax and National Insurance contributions.

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.

The biggest saving as part of an electric car salary sacrifice scheme comes in the form of income tax and National Insurance contributions. These savings exist because salary sacrifice is deducted from your gross pay (pre-tax), which effectively lowers your reported salary, leaving HMRC to tax you based on the lowered amount instead.

You will need to pay a small amount of Benefit-in-Kind (BiK) tax as salary sacrifice cars are classed as company cars, but this is currently only at 2% and rising by 1% each year from April 2025 to 2028 for zero emmission vehicles.

As part of the deal, most things are covered including the manufacturer’s warranty and servicing, as well as insurance and breakdown cover. The only things you’ll be responsible for really is keeping up to date with the monthly payments, as well as taking care of the car to ensure it doesn’t suffer any damage via negligence or other means.

You’ll also be responsible for returning the car at the end of your agreement, but you can work with us to do so at a time that suits you.

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.

Most standard damage will be covered as part of the included maintenance package that comes as standard, such as tyres and windscreen damage. Fully comprehensive insurance is also included, as well as breakdown cover for roadside assistance and recovery. 

If you’ve caused damage outside of the cover, this would need to be assessed and you may be liable to pay for the necessary repairs.

A common worry for people thinking about joining our salary sacrifice scheme is what happens if you leave your job while in the middle of an agreement. The general rule is that you would need to return the car and possibly pay an early termination fee of three months rental costs, but this is at the discretion of the employer. 

A key feature of our scheme is that we have Early Termination Protection, which means that you can opt out of the deal without being liable for such extensive remaining costs. It also protects employers, who won’t be left to chase payment with employees who are no longer with them. 

If you’re given a pay rise at work, the figures for your salary sacrifice agreement would be automatically updated if you have entered a different tax band. For example, if you’ve been increased from the 20% tax band to the 40% tax band, you’ll be able to save even more on tax.

In the event that you go on maternity or paternity leave, there are two options. If you opt to retain the car throughout your leave period, you'll have the opportunity to keep it for a full 12 months. You'll only need to cover six months' rental fees though, effectively giving you a discounted payment plan.

Alternatively, you can choose to return the car before commencing your paid parental leave. In this scenario, you'll be subject to the same early termination conditions, which mean paying either three months' rental or half of the remaining rental, whichever option is cheaper.

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).

We have a wide array of electric vehicles that you can choose from as part of your salary sacrifice deal. No matter whether you’re after a larger family SUV, a nippy city car or anything in between, we’ll have a great option for you.

This includes great EVs like the , and .

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.

Whether it’s right for you will depend on your personal circumstances, such as whether you need a new car and if you’d choose an electric vehicle.

But if you are interested in driving an EV while making massive tax savings, then leasing via salary sacrifice could be a fantastic option for you. 

Once you have chosen the right EV for you, your employer will then lease the vehicle from the leasing company via a business contract hire agreement. The cost of the monthly payments will then be taken from your salary automatically each month.

How the scheme will affect your pension depends on the type of pension that you have. Whether it’s a defined benefit pension, defined contribution pension or state pension, each is affected differently.

The short version is that if it’s a defined benefit pension, salary sacrifice reduces the amount paid out from your pension during retirement due to your total earnings being reduced. However, this impact can still be minimal, so it’s worth doing the sums to work out if it’s right for you.

If you have a defined contribution pension, it’s very unlikely that your pension will be affected since your pension contribution is worked out before you’ve applied the salary sacrifice. Therefore, there’s no reduction to your contribution and the amount you are entitled to once you’ve retired.

If you have a state pension, the only way you’d be affected is if your earnings are taken below the Lower Earnings Limit while you still earn over National Minimum Wage, which means you’d be working very few hours per week.