A company car salary sacrifice scheme allows employees to lease a green vehicle through their employer by giving up a part of their salary before tax. This scheme benefits employees wanting a new car and savings on income tax and National Insurance Contributions. With Fleet Evolution, it’s free to implement for employers and promotes sustainable car ownership.
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First in the UK to launch an electric car scheme in 2012.
Easy to start, with salary sacrifice car schemes ready daily.
Whether you have 3 or 20,000 employees, we’ve got you covered.
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Find out what a company car salary sacrifice scheme can do for you...
Find out what a company car salary sacrifice scheme can do for you...
No cost to the company and minimal administration.
Offering this benefit boosts employee satisfaction.
Lower National Insurance Contributions.
Pay less tax and NI contributions.
All vehicle expenses, like road tax, fully comprehensive motor insurance and maintenance, are included.
A tax form or calculator with a green check to highlight efficiency.
If you’re interested in reaping the benefits of a salary sacrifice scheme for your business, take a look at our guide! No commitments or expectations, just remember to let us know if you have any questions.
Company car tax, or Benefit-in-Kind (BIK) tax, is what employees pay when they receive a car as part of their employee benefits package through a salary sacrifice scheme.
The lower the car’s CO₂ emissions, the lower the BIK tax rate. Electric and plug-in hybrid cars currently enjoy incredibly low BIK rates, starting at just 2%. This makes them a much more affordable and environmentally friendly option compared to petrol and diesel vehicles, which have significantly higher rates. Choosing an electric car on salary sacrifice not only saves money but also supports sustainability goals, making it a win-win for businesses and employees alike.
At Fleet Evolution, we’re proud to have partnered with Unipres UK over the past decade, helping them save over 1 million kilograms of CO₂ emissions through our salary sacrifice car scheme.
The salary sacrifice model works very well for us, especially as Benefit-in-Kind tax rates are currently so beneficial, and it clearly helps us to meet our CO2 and corporate responsibility targets as shown by the CO2 savings we have achieved. At the same time, Fleet Evolution provides excellent service levels and takes away all the issues associated with the day-to-day running of our fleet.
Launching a scheme is straightforward:
1. Talk to Our Team: Understand the benefits of the scheme.
2. Engage: Discuss with stakeholders and get approval.
3. Partner: Team up with Fleet Evolution for setup.
4. Launch: We’ll host a launch event introducing the scheme.
5. Promote: Inform your employees about the new benefit.
Here's how to get yours:
1. Get Talking: Talk to your employer about starting a scheme
2. Quoting: Use our platform to find and quote your perfect car.
3. Ordering: Choose your salary sacrifice vehicle and arrange delivery.
4. Delivery: Get excited because your brand new vehicle will be coming!
5. Payments: Enjoy simple monthly payments.
- Zero emissions mean cleaner air.
- Charging is more CO2-efficient than fuelling.
- Options like solar panels make recharging greener.
Introduce a managed, brand-new car scheme that’s cost-effective and environmentally friendly.
Enjoy bulk discount rates with no upfront costs and save on taxes and NI contributions. Our scheme complies with all funding rules, and with our market-leading protection, you’ll never be left without a car.
Get answers to your questions about the Electric Car Scheme and discover how easy it is to drive green.
Salary sacrifice works on a car by allowing an employee to give up a portion of their employee’s gross salary in exchange for a company car. This deduction is taken before tax and National Insurance contributions are calculated, which can lower the employee’s taxable income and create savings.
Electric and low-emission vehicles typically have much lower BIK rates, making them an affordable and eco-friendly choice within salary sacrifice schemes.
This arrangement is a win-win, offering employees access to new vehicles while helping employers promote sustainability and boost staff benefits.
Opting for an electric car through a salary sacrifice scheme opens the door to cutting-edge EVs and impressive tax savings. It’s a practical solution to rising fuel prices and traditional vehicle maintenance costs while supporting a greener, forward-thinking way to travel. Drive a premium electric vehicle that reduces your carbon footprint, enhances your driving experience, and maximises your savings.
By choosing an electric vehicle through a salary sacrifice scheme, your taxable income is reduced, meaning you pay income tax on a lower amount. This leads to noticeable savings on both income tax and National Insurance Contributions. Fully electric cars also bring added benefits like being tax-exempt and offering significant fuel cost savings compared to petrol or diesel vehicles, making them a cost-effective and eco-friendly choice.
One potential disadvantage of a salary sacrifice car scheme is that there are certain limitations, such as employees needing to earn above the national minimum wage after the salary sacrifice deduction to be eligible. This means not all employees may qualify for the scheme.
To learn more about salary sacrifice schemes and whether they’re the right fit for your business, check out our detailed blog post on the advantages and disadvantages of salary sacrifice.The answer to if a salary sacrifice car is worth it is a resounding yes. If the prospect of driving a new, eco-friendly vehicle without the burden of upfront costs and with the bonus of reduced tax and insurance contributions sounds appealing, then yes—the salary sacrifice car scheme is an unparalleled choice. It’s an investment in your financial well-being and the health of our planet.
Yes, salary sacrifice car schemes need to be reported to HMRC. As an employer, you’ll need to include the details of the Benefit-in-Kind (BIK) provided through the scheme. Not sure where to start with this? We’re here to help!
As technology advances and production increases, electric vehicles (EVs) are becoming more budget-friendly. Combined with lower running costs, EVs are an appealing option for drivers who prioritise both cost savings and environmental sustainability.
You can claim the cost of charging your electric car at home for any work related journey. Whilst it’s not possible to claim the cost of charging for personal use, charging your EV is still much cheaper than filling up a petrol or diesel car. In addition to this, with the rise of longer-range EVs, you’ll find that charging at home or taking advantage of the many free charging stations across the UK is both convenient and cost-effective. Whether you’re commuting to work or heading out for a road trip, the savings and ease of charging make going electric a smart and practical choice.
