A salary sacrifice car scheme is a workplace benefit that lets you exchange part of your gross salary for a new car through your employer.
Instead of paying from your take-home pay, the cost is taken from your gross salary before Income Tax and National Insurance are applied. You will usually also pay Benefit-in-Kind (BiK) tax on the car.
These schemes are especially popular for electric cars due to lower BiK rates, and can also include costs such as insurance, servicing, maintenance, tyres and breakdown cover.
In simple terms: your employer provides the scheme, you choose a car, and the cost comes out of your gross salary each month.
Have a quick chat with our Salary Sacrifice expert about setting up your scheme!
Get our no-nonsense guide to Salary Sacrifice Schemes and see how it benefits you!
Introducing a salary sacrifice car for your team can be a game-changer for everyone. It promotes the use of electric vehicles while offering numerous financial benefits. If you’re an employer looking to integrate this scheme into your company’s benefits package, here’s a step-by-step guide to get you started:
Decide whether salary sacrifice will work for your company. The benefits include promoting green motoring, reducing your company-wide CO2, and fostering a happier environment for your team.
It’s also valuable to your employee benefits package; making your company more attractive to potential recruits, and even helping retain employees.
Discuss the idea with key company stakeholders. This may include senior management, HR, and finance teams.
Highlight the benefits of offering electric vehicles as a company car option through salary sacrifice.
Partner with a reputable provider, such as Fleet Evolution, who specialises in electric car schemes.
We will guide you through the intricacies of the scheme, advise and support you on our journey together, and ensure a smooth scheme implementation.
Once the scheme is in place, it’s time to promote it to your employees. We will arrange a date to bring some electric cars to your office to launch the scheme. We’ll prepare an educational session, Q&A, and lunch to kick things off.
Highlight the benefits of driving electric over petrol and diesel vehicles, plus the significant financial savings they can make and the positive environmental impact.
Our Driverline team provides ongoing support for your people. From quoting to ordering and beyond, we’re on-hand to answer queries and ensure they’re fully equipped to move ahead on their electric journey.
By following these steps, you can successfully introduce salary sacrifice in your company, paving the way for a greener future and offering a valuable benefit to your employees.
The idea behind salary sacrifice is simple; you give up part of your gross (pre-tax) salary for a non-cash benefit in return. In our case, this will be a green car. How will a green scheme benefit the employee?
Employers experience a range of benefits when introducing salary sacrifice into their company. The main one is that are making their employees happy, of course. How else will they benefit?
If you’re keen on driving an electric vehicle and want to take advantage of our salary sacrifice scheme, here’s a step-by-step guide to help you through the process:
Talk to your employer and ask if they have a scheme with us in place, or if they’re ready to introduce one.
With salary sacrifice, you can exchange a portion of your pre-tax salary for a brand-new electric car, making you savings on your tax and National Insurance contributions.
If your employer needs some convincing, take advantage of our referral scheme and let us know – we’ll speak to them for you!
Once your employer is happy to go ahead, they can simply fill out our scheme agreements; you’ll be set up in a matter of days!
When your scheme is up and running, you can request your login here and start quoting on your next car.
Check out our Quote Engine walkthrough video, and if you need any support, the Driverline team are on hand to help. They will give you the best advice based on your personal requirements, helping you choose the right EV that suits both your needs and budget.
When you have found your perfect car, save your quote and speak with the Driverline Team.
After finalising your choice and completing the necessary paperwork, your brand-new electric car will be delivered to your preferred location.
This ensures a hassle-free experience, allowing you to enjoy your new ride without any holdups!
The true cost of the salary sacrifice will be divided into manageable monthly payments. These payments will be automatically deducted from your gross salary.
If you follow these steps, you’ll be jumping into your new electric car in no time! Promoting a greener mode of transport while enjoying the financial perks it brings, what a green legend.
Fleet Evolution is here to guide you every step of the way, ensuring you make the most of this great opportunity!
To see what monthly deductions could look like in practice, use our salary sacrifice car calculator to compare estimated EV costs by tax band.
Companies, like ourselves at Fleet Evolution, actively encourage the use of electric vehicles through salary sacrifice. Your team makes savings from tax and NI, it costs you nothing, and there’s no risk to you!
Transferring your company cars to electric vehicles will help improve the environment and reduce your carbon footprint. Become a green leader in your industry by switching to a green fleet!
•Vehicle lease
•Insurance
•Servicing and maintenance
•Replacement tyres
•Breakdown cover
•Road tax where applicable
•Accident management
•Employer scheme support
•Online quote and ordering tools
Electric cars through our salary sacrifice car scheme offer a cost-effective way to drive, without the hefty fuel bills and constant maintenance. All our cars are fully maintained, insured, and taxed, so all you pay for is the electricity.
While plug-in hybrids are available, they often come with higher Benefit-in-Kind rates, making fully electric vehicles the smarter choice. We also offer a wide range of stock and pre-loved green cars, helping you get behind the wheel quickly while saving on tax, running costs, and emissions.
The more you earn, the more tax you pay. However, salary sacrifice car schemes help you keep some of that money.
This is because you pay for the benefit from your pre-tax (gross) salary.
In turn, this reduces your take-home pay, saving you on your tax and National Insurance contributions.
Employers pay NICs for every salary they give to staff; any benefits given to an employee are exempt from these payments. This means that if an employer pays for a staff cost, such as a salary sacrifice vehicle, no NICs will be due on the benefit.
EV’s help you make the most out of salary sacrifice. You can access brand-new cars with tax benefits, save money on fuel, and avoid the use of petrol/diesel.
Want to find out more? Speak to Jordan for more information, or see how Unipres got on with the scheme!
Choosing Fleet Evolution for your salary sacrifice car shows your belief in working with an experienced and trusted company, one that puts business and green policy first. We also:
Launched the UK’s first electric car scheme in 2012
Offer simple, low-risk, and low-admin schemes
Can introduce the scheme for any sized business
Offer free carbon reporting
Our vision and commitment lies with promoting ultra-low emission vehicles and sustainable car ownership for the UK’s employees.
Not only do we deliver schemes in a day, but we also handle all engagement, ensuring a smooth transition for your employees. Our dedicated team also manages HMRC submissions and contract variations, assuring compliance and ease for your company. With Fleet Evolution, you’re choosing a partner leading the way in green vehicle initiatives in the UK.
Get answers to your questions about the Electric Car Scheme and discover how easy it is to drive green.
If an employee leaves then you do not have to continue with payments for the car. However, we will offer the car to the employee under a more standard lease option or to outwardly pay for the vehicle. So, as an employee, you can always have the option of car ownership regardless of if you stay with the company in question or not. Hence, it is a good system to buy a brand new vehicle even if you are worried about the company commitment.
You can find a lot of brand new cars for amazing prices when you buy salary sacrifice car. However, you gain the most when choosing ultra low emission vehicles. Providing salary sacrifice for a company car has many benefits, but the option of having new electric vehicles is by far the most impressive.
If you want a better car that offers tax benefits and avoids any big upfront payments, then this is the best option. It is great for helping you budget and it lowers your income tax. Not many schemes offer benefits such as this.
Discover the range of electric vehicles available and how they can transform your daily commute and financial health.
Usually, the agreements last over 24 months and above. Our most common term is 36 months but we also provide 48 month agreements. The choice is up to you. We also have options for short term contracts.
You can choose to buy the car once your term is over, however, you also have the option to pass the car back. From there, you can either take on a new salary sacrifice vehicle or move away from the scheme. Speak to one of our consultants to find out how we can make salary sacrifice work for your business.
With salary sacrifice for cars, you can exchange part of your pre-tax salary for a brand-new vehicle. This cost-efficient arrangement often includes everything from leasing and maintenance to breakdown cover and road tax, making it hassle-free. The amount is deducted from your gross pay. It’s a simple way to drive a car without the financial burden of upfront costs or ownership responsibilities.
Salary sacrifice is a flexible workplace benefit that lets you exchange part of your gross salary for perks like a car, pension contributions, or other non-cash benefits. Keep in mind that you’ll need to earn above the National Minimum Wage to be eligible for salary sacrifice, as otherwise your salary could fall below the minimum.
