Electric car salary sacrifice schemes have grown in popularity as businesses look for ways to reduce costs and support sustainability. If you’re considering this option, understanding its benefits is essential. Keep reading to learn seven key advantages your business might gain by adopting such a scheme.
1. Significant Cost Savings for Employers with EZOO
One of the strongest benefits is the potential for reducing National Insurance contributions. When employees sacrifice part of their pre-tax salary for an electric vehicle, the company’s National Insurance bill may drop. Providers like EZOO simplify this process, helping businesses manage the scheme efficiently while maximising savings. This effect can create meaningful savings over time, especially in businesses with many participating staff.
2. Attractive Employee Benefit That Boosts Retention
Offering access to electric cars through salary sacrifice makes your workplace more appealing. Employees often look for perks that improve their lifestyle, and driving an EV with lower running costs fits well with modern priorities. This benefit can help retain skilled staff and boost overall satisfaction.
3. Supports Corporate Sustainability Goals
Businesses across the UK are increasingly committed to lowering their carbon footprints. Encouraging employees to switch to electric vehicles through salary sacrifice schemes directly supports these goals. This approach sends a clear message about your company’s environmental responsibility, enhancing your reputation.
4. Flexible and Managed Solutions Simplify Administration
Managing a fleet or offering electric vehicles through salary sacrifice doesn’t have to be complicated. Some providers offer fully managed schemes tailored for employers, handling everything from setup and compliance to maintenance, insurance, and employee support. It’s a hands-off way to introduce electric vehicles as a workplace benefit, while reducing admin and keeping costs predictable.
5. Reduces the Company’s Upfront Capital Costs
Electric cars accessed via salary sacrifice are leased rather than bought. This removes the need for large upfront payments by the business. Instead, manageable monthly deductions from employees’ salaries cover the cost, improving cash flow and budgeting.
6. Wider Range of Vehicles to Suit Different Needs
Salary sacrifice schemes often provide access to a large selection of new and used electric cars. This variety helps meet the diverse needs of your workforce, whether employees want compact city cars or larger models. Offering choice is another way to enhance employee satisfaction.
7. Potential Tax Advantages for Employees and Employers
Employees participating in salary sacrifice schemes may benefit from lower tax and National Insurance payments. This happens because their taxable income reduces. Likewise, employers gain from reduced National Insurance costs, creating a win-win scenario.
Final Thoughts
Embracing an electric car salary sacrifice scheme provides your business with financial, environmental, and employee-related benefits. Cost savings, simpler fleet management, and support for sustainability make it a compelling choice. Additionally, your staff gain access to affordable, flexible options for driving electric vehicles, increasing workplace satisfaction.