Hot off of Christmas (or should I say cold?) and into the longest month of the year, the lead-up to payday can feel like an eternity. If stretching your budget feels impossible, maybe there’s a way to make your money go further… Well, you’re in luck. Our salary sacrifice EV scheme offers a practical solution. So you get access to a brand-new, fully-maintained electric vehicle while reducing your motoring spend.
Here’s how a salary sacrifice car can ease financial pressures and help you save.
What Is Salary Sacrifice?
A salary sacrifice EV scheme allows employees to trade a portion of their gross salary for a benefit; in our case, this is a green car.
When you pay for the car, the payment is deducted from your gross salary. This means you pay less income tax and National Insurance contributions, and save more on your motoring. And by swapping your £60 weekly refuel for a £5 overnight charge each week, the savings speak for themself.
This arrangement makes big-ticket items, like a car, surprisingly affordable.
Why Salary Sacrifice Works
With a salary sacrifice EV scheme, you can reduce costs and simplify your financial life. Here’s how:
- Lower Monthly Expenses: EVs cost less to run compared to petrol or diesel cars. Plus, our scheme outlines a single monthly, predictable payment.
- Tax Savings: Payments are taken before tax, so you pay less in Income Tax and National Insurance.
- No Surprise Costs: Unlike older cars, our salary sacrifice scheme bundles insurance, maintenance, servicing, and more, eliminating unexpected repair bills.
Our scheme is as transparent as they come, so you’ll always know what to expect. See our damage waiver here.
How Much Can You Save?
Let’s compare: a brand new MG4 on salary sacrifice VS owning a 5-year-old Vauxhall Astra.
With a salary sacrifice scheme, you not only save on running costs but also gain a reliable, eco-friendly car. Any issues? We handle it.
But Are EVs Too Expensive?
Many assume electric cars are financially out of reach due to their high upfront cost. Salary sacrifice schemes change the game by spreading out the cost and leveraging tax benefits.
A £35,000 EV may cost only £250/month under salary sacrifice compared to £500/month through traditional financing. Let’s look at an MG4 again for comparison:
Running costs, such as charging, road tax, and maintenance, are drastically reduced compared to petrol or diesel vehicles. You can also save more with an EV, through charging up at work, or overnight at home. It’s good practice to browse other energy providers and see if you can find a better deal, but switching to an EV-specific or off-peak tariff could save you even more! With these savings, EVs are an attainable choice for many households.
We also offer used cars, flexible rentals, and the option to buy your car at the end of the term. So when we say flexible and tailored to you, we mean it.
Employers Introducing the Scheme
Employees Going Green
Changes to Be Aware of from April 2025
There will be a road tax on electric cars. I know, we’re gutted too.
From 1st April 2025, road tax will apply to electric cars. While it’s disappointing to see an added cost, the good news is that it remains lower than for petrol or diesel vehicles.
For electric, zero, or low-emission cars registered on or after 1st April 2025, you will pay the lowest rate for the first year, which is £10. From the second payment, it will rise to the standard rate of £195.
For those cars registered between 1 April 2017 and 31 March 2025, you will pay the standard rate of £195.
Expensive Car Supplement
If your EV is worth £40,000 or more when new, there’s an additional luxury car tax (or “expensive car supplement”) of £410 annually for five years, similar to what petrol and diesel owners already pay.
But don’t let this put you off making the switch! Electric cars still offer huge savings on fuel, maintenance, and emissions charges, even with the new road tax. Plus, ordering now may mean you’ll be driving your brand-new EV when the changes take effect, ensuring you’re ahead of the curve on savings and sustainability.
Combine that with the free Ohme charge point offer, and you’re in for a great deal. Maximise your savings and drive smarter!
You can find out all the information regarding EV road tax on the Gov website here.
Benefits for Employers
You can see how this benefits the team, but does the boss see any good? Employers who offer a salary sacrifice EV scheme can also enjoy several advantages:
- No Upfront Costs: There’s no initial deposit or investment required to set up the scheme.
- Tax Savings: Employers save on National Insurance contributions.
- Enhanced Employee Benefits: A greener benefits package helps attract and retain talent while reducing financial stress among staff.
This mutually beneficial arrangement boosts morale, productivity, and the company’s eco-credentials.
Want to find out more about why our scheme benefits your company? Head over to our employer zone here.
Why 2025 Is the Right Time to Switch
As the UK advances toward net-zero emissions, the government continues to expand Clean Air Zones and discourage petrol and diesel use through higher taxes. Meanwhile, electric vehicles are increasingly affordable and practical, with:
- Low road tax and no congestion charges
- Lower fueling costs
- Exemption from Clean Air Zone fees
Choosing an EV now future-proofs your finances against rising fuel prices and ensures compliance with evolving environmental regulations.
Why Wait? Start Saving Today
If payday still feels too far away, consider a salary sacrifice car scheme as a financial lifeline. It’s not just a way to save money – it’s a smarter, more sustainable choice for your motoring, budget, and the planet.
Key Benefits:
- Lower transport costs
- Significant tax savings
- Fixed monthly expenses
- Contribution to environmental goals
Final Thoughts
Don’t let the stretch between paydays keep you stressed. By switching to an EV through a salary sacrifice scheme, you can ease financial pressures, save on taxes, and help the planet – all while driving a brand-new car.
Our schemes are as simple and transparent as they come. We keep you updated every step of the way, from ordering, to delivery, to mileage updates, to returning your car. We value your time, your savings, and the planet – so let’s start your green journey together. Get the scheme guide below, or book a call with the team if you want to find out more.
Find out more about us and how dedicated we are to making sure our scheme benefits you.
Get in Touch
Fleet Evolution offers innovative salary sacrifice schemes, helping employers and employees save on costs while promoting eco-friendly electric cars. Enjoy easy setup, free maintenance, and swift activation for any company size.