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There is very little management that will be required on your end. You’ll need to let your staff know of the eligibility criteria for employees to join though, such as the fact that they cannot join the scheme if it reduces their cash earnings below the National Minimum Wage.

It’s also common for employers to ensure only those employed on a full-time basis and those with a valid driver’s licence can access 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.

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.

Your business will likely be eligible to join the Á«»¨Ö±²¥ Leasey Salary Sacrifice Scheme, and it won’t cost you anything to do so. Your employees will need to agree to a slight amendment to their contract once the scheme has been set up, but this isn’t likely to be a problem as there is a huge array of benefits for employees when joining the scheme, and it’s entirely optional. 

If you’re unsure whether your business will be eligible, simply and we’ll be able to assist you. 

No, there’s no maximum number of staff that can join the scheme. Your entire workforce can join and reap the benefits of EV salary sacrifice if they so wish.

After joining the scheme, your company will be enrolled for as long as you’d like, until you decide that you don’t want to be on the scheme anymore.

For your employees, the duration of their individual lease agreements tends to be for between two and four years, which they’ll agree to as part of their enrollment process.

The great thing about the Á«»¨Ö±²¥ Leasey Salary Sacrifice Scheme (well, one of the great things) is that we’ll handle the strain of managing the scheme on a day-to-day basis, including providing the cars, the leasing terms and the package, including insurance, maintenance and servicing programmes for the cars.

As we do most of the legwork, it’ll be a hassle-free process for you as the employer. All you’ll need to really do is work out which employees are eligible, make new employees aware of the benefits and how to opt in, and deal with any internal issues that may arise. Your HR team will need to update employment contracts too once the scheme is in place.

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.

For each lease that your employees take out, once their contract comes to an end they’ll simply return the car and settle any excess mileage or damage fees, in the same way they would if it was a standard personal lease. They’re then free to either take another lease or organise alternative plans.

For your business, you can contact us for more information on your options if you’d like to end your EV salary sacrifice agreement.

If an employee leaves the company while they’re enrolled in the scheme and is in possession of a car, they’ll need to return the car and pay an early termination fee, which is deducted from their final pay packet. The cost of this will be based on how much they pay per month and how long is left on their contract. Any damage or excess mileage fees will also need to be paid for.

There may be some cases where their new employer will agree to transferring the lease into their name, and this is something we’d help you with if it happens.

The Á«»¨Ö±²¥ Leasey Salary Sacrifice scheme includes an early termination protection policy provided by Lex Autolease, and underwritten by Lloyds Banking Group. This helps minimise the financial risk to the business.

The most important piece of information you can pass on to your staff is the vast array of benefits that they are entitled to by joining the scheme. This should be done clearly and concisely, either by the board or the HR department.

Our specialist team can also help in this aspect. The eligibility criteria will also need to be shared with your staff.

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).

If your business no longer wants to be part of the scheme, you can contact us and explain the situation. We’ll then be able to fully talk through the available options for you.

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.

After one of your employees has chosen the electric car that they want, as the employer you will then lease the vehicle from the funder through a business contract hire agreement.

You will then deduct the cost of the monthly payments from the employee’s monthly salary and pay the funder.

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.