Why joining an EV salary sacrifice scheme just makes business sense
Picture this. Someone in your team has researched sustainable employee benefits and found the ultimate EV salary sacrifice scheme. They’re convinced it’s the right thing for your business. You think it’s a good idea, but you have a few questions. Well we’re here to answer them.
First up, how much is an EV salary sacrifice scheme going to cost my business?
Short answer: Nothing.
Longer answer: It’s free for your business to join our EV salary sacrifice scheme. Each member of your team who gets an EV pays for it through their salary. The business may have to cover the cost temporarily if one of your team goes on long term leave for sickness or parental leave for example, but we’ll credit it back, or you can choose to end their agreement.
And you don’t need to commit to a certain number of EVs. You can do whatever suits your business.
Time is money. How much time will you need to spend on setting up a salary sacrifice scheme for your employees?
To manage the scheme’s admin, it takes most businesses just 2 minutes per month for each employee who has an EV through the scheme. We’ve made it as easy as possible to do with our dedicated HR portal.
We’ll take the payment from your business, and give you a monthly report detailing all costs, so whoever deals with payroll just needs to adjust the net salary payments to compensate. Simple.
How much experience does someone need to manage the EV salary sacrifice scheme?
No experience at all! That’s the beauty of working with us. We support you and your team at every stage, with guides, advice, and most importantly real people to speak to if you have any questions.
What’s the risk for our business if our team leaves while they have an EV through salary sacrifice?
Life can be unpredictable. We get it. So the scheme comes with early termination protections, so you’ll be covered if someone leaves, or gets their licence revoked for example. How these protections work depends on what your business needs.
Do you credit check our business or our employees before joining a salary sacrifice scheme?
We don't credit check your employees.
We do run credit checks on your business when you join, based on how many of your team you believe will get an EV through the scheme.
This means we don’t have to credit check your team as the credit is applied against your business, another great benefit for your employees.
What do we need to report to HMRC when joining an EV salary sacrifice scheme?
At the end of the tax year you’ll usually need to submit a P11D form to HMRC for each employee who’s got an EV through salary sacrifice. You’ll also need to submit a P11D(b) form if:
- you’ve submitted any P11D forms
- you’ve paid employees’ expenses or benefits through your payroll
- HMRC have asked you to - either by sending you a form or an email
Your P11D(b) tells HMRC how much Class 1A National Insurance you need to pay on all the EVs that your team have through salary sacrifice.
You can find out more on the government website here.