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Electric Car Salary Sacrifice Scheme

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black project ev charger installed

The electric car salary sacrifice scheme has lots of benefits. These benefits help both the employees and the employer:

  • Most cost-effective way to drive an electric car.
  • Paid via gross salary rather than taxed net pay.
  • Easier to retain existing staff.
  • Less mileage expense claims.

Electric car salary sacrifice scheme, what is it?

The electric car salary sacrifice scheme is a way of leasing an EV. Usually, this is the cheapest way to get into an electric car. The scheme works in the same way as cycle to work, child care and pension contribution schemes you may already be used to offering.

What is an electric car salary sacrifice?

The electric vehicle salary sacrifice scheme is a way of letting your employees pay for an electric car each month through their gross salary, this is before tax and any other contributions are deducted. The scheme works in the same way as other salary sacrifice schemes such as cycle-to-work, childcare or pension contributions.

How does the electric car salary sacrifice scheme work?

If you’re going to offer your employees this benefit you will need to speak to one of the many companies offering the salary sacrifice scheme. They will give you a list of vehicles that they can offer which you can present to your employees for them to choose from. Once the employee has chosen a car, you will lease the vehicle from your chosen supplier and in turn, you then lease the car to your employee. A portion of your employee’s salary each month is automatically deducted prior to tax to cover repayments on the car. Servicing and insurance are typically covered as part of the scheme with schemes lasting typically 2-5 years.

Who offers the salary sacrifice scheme?

There are plenty of companies out there offering this scheme, a quick google will bring up all the big players so you’ll have your choice of those that suit your company best to work with. Some examples are:

Fleet Alliance

Love Electric

What are the benefits of the electric car salary sacrifice scheme?

There are many benefits to the scheme, these work in favour of the employee and the employers, below we have highlighted some of the key benefits.

Benefits for employees:
  • Most cost-effective way to drive an electric car.
  • Paid via gross salary rather than taxed net pay.
  • Servicing and maintenance, insurance, breakdown cover and road tax coved by the scheme.
  • Partners or family members can be on the insurance.
  • Can be used for personal use outside of working hours.
  • Reduces your emissions.
Benefits for employers:
  • More attractive to potential employees.
  • Lower carbon footprint.
  • Easier to retain existing staff.
  • Less mileage expense claims.
  • Offset against salary increases.
  • Can be a benefit to all staff.
  • Encourages staff to adopt low emission motoring.

You’re going to need EV chargers.

So you’ve signed up for the scheme and your employees are starting to receive their electric vehicles. You’re going to need a workplace charger(s) to allow your employees to charge vehicles while at work. We can help sort this out for you, see our blog about getting an EV charger installed. We have a huge range of electric chargers available depending on your needs. Electric chargers can be offered as an additional perk to staff. Offering the use of these EV chargers for free to staff or charging a small fee can help increase employee retention and drive. You should also head over to our grants section to find out if you qualify for government funding.

Get in touch if you’re looking to add workplace chargers to your business, or pass on our details to your staff so they can get their own chargers installed at

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