The Ultimate Guide to Electric Car Salary Sacrifice for Employees

An EV salary sacrifice scheme lets you lease an electric vehicle (EV) through your employer by giving up part of your pre-tax salary. This comes with great tax benefits, making it easier to afford and drive an eco-friendly car.

If you're thinking about this scheme, you probably have a lot of questions. That's where this guide comes in to help you out.

We’re going to chat through and answer:

• Can I get an electric car on salary sacrifice?
• How does salary sacrifice for electric cars work for employees?
• What’s included in EV salary sacrifice?
• How much does it cost to have an electric car on salary sacrifice?
• Will salary sacrifice affect my benefits or student loan?
• Is electric car salary sacrifice worth it?
• Can I get a used car on salary sacrifice?
• How can I get an EV on salary sacrifice?

Absolutely! Salary sacrifice schemes, such as our electric car scheme, offer a fantastic opportunity for you to lease an electric car through your company. It's a win-win situation, providing tax benefits for both you and your employer while promoting green transport.

With salary sacrifice, you give up part of your pre-tax salary in exchange for benefits like a leased electric car. This setup usually leads to big tax savings, making electric cars more affordable and easier to access.

Electric car salary sacrifice packages can vary, But our salary sacrifice package gives you everything you need to hit the road:

• Insurance
• Servicing and maintenance
• Breakdown cover
• Charging credit

The cost of having an electric car on salary sacrifice depends on a few things, including:

• The EV you choose
• Lease terms
• Employer contributions, i.e. car allowance

Check out the example costs below:

Salary sacrifice might affect your benefits or student loan, depending on your circumstances. You can read more in our blog: what impact does salary sacrifice have on my salary, pension, and benefits?

Electric car salary sacrifice schemes will give you tax savings, but if you’re switching from petrol, then be ready for reduced running costs too. For a lot of people it’s a no-brainer.

However, it’s a big commitment, and to decide if it’s right for you, you’ll need to think about your circumstances, including your:

• Salary
• Tax bracket
• Commuting habits

Most salary sacrifice schemes focus on brand-new cars. However, some schemes, like our EV salary sacrifice scheme, do offer used cars.

Our nearly new option gives you the chance to have an EV that’s less than 18 months old, alongside all our other salary sacrifice benefits, like the free home charger and maintenance package. And because it’s not brand new, it gets you on the road in an EV at an even more affordable price.

If you’re a business decision-maker, you can set up a salary sacrifice scheme with ease. Check out our guide to EV salary sacrifice for businesses to find out more.

If you’re an employee and your company already has a salary sacrifice scheme in place, chat with your HR department or whoever is in charge of company benefits, to find out more.

If you’re an employee, and your company doesn’t already have a scheme set up, you’ll need to have your business join up. We can help you do this with our convince your company scheme. Simply fill out the form and tell us the company you want to convince and we’ll help you along.

Want to find out more about EVs? Head over to our EV Hub.