How an electric car salary sacrifice scheme can complement employee benefits

Employees are the heartbeat of your business. Keep them happy and supported, and they’ll do brilliant things. Ignore them, and… well, LinkedIn recruiters will thank you. 

Most companies already offer flexible working, wellbeing perks, and a decent spread of core benefits. But if you’re wondering how to give your benefits package a glow-up without asking finance for more budget, an EV salary sacrifice scheme might just be your secret weapon.

And for many employers, it doesn’t actually cost anything to set up. 

So, how exactly would it complement the benefits you already offer?

Results are based on a 4 year lease at 5,000 miles per annum.

The biggest barrier to getting a new car is usually uncertainty about cost.

An EV salary sacrifice scheme is probably the only benefit that can help reduce that anxiety. Instead of paying a large upfront deposit, employees pay a fixed monthly amount taken from their gross (pre-tax) salary. That includes:

• Insurance
• Servicing and maintenance
• Breakdown cover
• The choice between a home charger and installation or £600 of Electroverse credit

Because the payments come from their pre-tax salaries, employees can also benefit from income tax and National Insurance savings. And thanks to low Benefit in Kind rates on electric vehicles, the tax impact is usually far lower than for petrol or diesel company cars.

On top of that, home charging is significantly cheaper than filling up with petrol or diesel, which can reduce monthly running costs.

“I remember having a cycle to work scheme ages ago, where you look at the tax benefits and it comes to tens of pounds or maybe hundreds of pounds,” says James McMaster, CEO of Huel. “But when it comes to cars, we're talking about thousands of pounds. The financial gain is amazing.” 

Of course, the exact savings depend on factors like salary, tax bracket, mileage, and energy tariffs. But for many employees, it provides predictable costs, built-in protection against unexpected bills, and a more affordable route into a new car.

Want to go further than your standard discount on gym memberships? Giving your team access to EVs shows you actually care about their wellbeing.

EVs are smoother and quieter than petrol or diesel cars. That means less noise, fewer vibrations, and a calmer ride. “The first thing you notice is the sound,” says James at Vegner Group. “Everything just feels a little bit calmer.”

Whether your employees are catching up on calls, listening to their favourite podcast, or just taking a moment to breathe after a hectic day, an EV can turn the daily grind into something a bit more bearable.

It won’t magically eliminate traffic jams. But it will give your team a little extra support for their mental and physical health. And because happier employees are usually more productive and engaged, that’s a big win for everyone.

If you’re all about flexible working, an EV salary sacrifice scheme will slot in nicely alongside your current benefits. Employees can use their EV for everything from commuting to work meetings, school runs, or weekends away. It’s a benefit that adapts to their life, not the other way around.

Need to pop out for a coffee, hit the gym, or dash to the shops between calls? Low running costs mean it won’t break the bank, and fewer emissions mean employees can feel good about their choices.

“Having everything included, like insurance and maintenance, takes a lot of pressure off,” explains Angela at Brightbee. “If something happens, Octopus has it sorted.”

Let’s be honest: it won’t solve every scheduling headache. But giving your team a versatile, eco-friendly vehicle is a practical step toward more freedom, less stress, and a work-life rhythm that actually works.

Most traditional benefits don’t directly touch people’s day-to-day routines like an EV does.

Offering an EV salary sacrifice scheme can help make your benefits package more appealing, which may boost retention and attract talent. In fact, the overwhelming majority of employees (74%) said they’d want their employer to offer an EV salary sacrifice scheme when they were shown what was included.

“The scheme has been very successful and is clearly providing a benefit to employees, which helps to maintain talent,” says Karl Goulding-Davis, Chief Financial Officer at GB Railfreight. “It’s also a catalyst to actually get people into the business.”

That said, it’s not a magic bullet. EVs won’t fix deeper engagement issues or replace good management.

The key is balance: when paired with existing benefits like wellbeing programmes and flexible working, an EV scheme can make your package feel more modern and thoughtful. 

In a competitive job market, employees are looking for more than just a salary. Many want to work for organisations that reflect their values and take sustainability seriously, and that extends to their benefits package.

By giving employees access to electric vehicles, you’re offering a lower-emission alternative to petrol and diesel cars for commuting and business travel. If employees are driving EVs for work trips, that can also help reduce transport-related emissions and, in some cases, lower your fuel reimbursement costs.

“We wanted to give our employees more choice and meet our sustainability ambitions,” explains Andrew, Regional HR Manager at MSC UK. “EVs absolutely tick all those boxes.”

Of course, the real environmental impact depends on what the EV is replacing and how it’s used. An EV isn’t a silver bullet for hitting Net Zero, and it works best as part of a broader sustainability strategy. But it is a visible, measurable step in the right direction.

For employees who prioritise sustainability, it’s a benefit they’ll be proud of. For your business, it can support ESG reporting, strengthen your employer brand, and show that your climate commitments aren’t just words on a website.

Get in touch with us to find out how EV salary sacrifice could work for your business. We’ll walk you through the setup, answer your questions, and help you get employees driving electric faster than you can say “low-emission commute”. 

And if you’re not sure whether your team is ready, why not run our employee survey first? It’s quick, easy, and gives you a clear idea of interest before committing.