To put it simply, an EV salary sacrifice scheme is a government benefit scheme that can help you afford to lease an electric car in a cost-beneficial way.
Essentially, you agree to give up a portion of your salary in exchange for an electric vehicle lease, and this arrangement allows for the lease payments to be deducted from pre-tax income, which lowers your taxable income.
This not only incentivises the adoption of environmentally sustainable vehicles but also offers significant cost savings by reducing your overall tax liability.
In this blog, we explain how EV salary sacrifice works, along with the benefits of the scheme and what type of electric car you should choose.
How Does EV Salary Sacrifice Work?
Are you interested in exploring how you can benefit from driving an electric vehicle while keeping the costs down?
The EV salary sacrifice scheme from EZOO offers a structured approach to acquiring a zero-emission car with financial advantages, which we’ve outlined below:
- Car Leasing: Once an employer sets up the salary sacrifice scheme with us, they lease an electric car on your behalf, typically lasting between two and four years.
- Simple Payments: The lease payments come straight out of your pre-tax salary. This means you’ll save between 30% and 60% on the cost of the car because the payments are deducted before tax.
- Hassle-Free Experience: You can pick from a list of approved electric cars, and the one you choose will be delivered right to your door – with EZOO the wait can be as little as 7 days. The lease package covers everything: insurance, servicing, breakdown cover, and tyre replacement, so you don’t have to worry about extra costs.
Employers also benefit from this scheme, as the leasing company, such as ourselves EZOO, handles all the fleet management administration at no additional cost. This allows employers to offer valuable employee benefits with minimal effort.
Overall, the process is simple as we liaise with employers to handle the paperwork, while you enjoy the benefits of a zero-emission vehicle at a reduced cost.
However, if you have more questions visit our FAQs which will help.
What are the Benefits of EV Salary Sacrifice?
Aside from the fact that you get to drive one of the latest electric cars of your choice, we have a large and ever-expanding fleet of vehicles for both long and short-distance driving.
There are other benefits to consider, including:
Big Savings
You could save between 30% and 60% on the cost of driving an electric car. The best part is that payments are taken directly from your pre-tax salary, which lowers your taxable income and National Insurance contributions.
Plus, you can say goodbye to the high costs of petrol or diesel. Use our calculator here to estimate your savings.
All-Inclusive Coverage
No need to worry about road tax, maintenance, or insurance as many EV salary sacrifice packages cover these, along with the installation of a home charger.
With fixed monthly payments and no need for a large deposit or credit check, managing your budget becomes much easier—and your credit rating stays intact.
Flexibility and Peace of Mind
You’ll have a wide range of electric vehicles to choose from and the option to upgrade every few years, depending on your contract.
You don’t have to worry about the car’s value or selling it when it’s time to switch. It’s all taken care of, giving you the freedom to enjoy the ride.
Helping the Environment
Electric cars stand out as the environmentally friendly choice compared to petrol or diesel vehicles. They’re powered by lithium-ion batteries that are charged with electricity, unlike combustion engines that run on fossil fuels.
This means electric cars produce no exhaust fumes, significantly reducing harmful greenhouse gases like carbon dioxide that are typically emitted by traditional vehicles.
An EV salary sacrifice scheme offers you an affordable way to drive a new or used electric vehicle, with the added convenience of fixed payments, comprehensive coverage, and flexibility that fits your lifestyle.
Choosing the Right Electric Vehicle for Salary Sacrifice
So, how do you know how to select the right electric vehicle through a salary sacrifice scheme?
This involves careful consideration of several key factors:
Vehicle Range and Battery Life
Assess how far the EV can travel on a single charge and its long-term battery performance. Consider your daily commute and driving habits. Opt for an EV with a range that suits your needs and check the battery warranty for peace of mind.
Charging Infrastructure
Evaluate the availability of charging options. Look into local public charging stations and the possibility of installing a home charger. Convenient home charging can be a significant advantage, and many salary sacrifice schemes include this option.
EV Type and Size
Choose from various EV types, including hatchbacks, sedans, SUVs, and luxury models. Consider your personal and family needs, such as passenger capacity and cargo space. Ensure the vehicle fits your lifestyle and practical requirements.
Charging Options
Ensure you have access to reliable charging infrastructure, whether at home, work, or public stations. Charging at home is typically more cost-effective, but if you rely on public stations, check their availability along your regular routes.
By evaluating these factors, you can select an EV that meets your needs while maximising the benefits of the salary sacrifice scheme.
Join Our Scheme Today!
An EV salary sacrifice scheme is a great opportunity to drive a new electric vehicle while enjoying significant financial benefits. By allowing you to exchange a portion of your pre-tax salary for an electric car lease, the arrangement not only reduces your taxable income but also offers savings on National Insurance contributions.
In addition, the lease scheme covers essential costs like insurance, maintenance, and road tax, making it a hassle-free and budget-friendly option. Plus you are helping the environment so a real win-win.
With a wide selection of electric vehicles, flexible contracts, and the added benefit of contributing to environmental sustainability, EV salary sacrifice schemes are a smart and accessible choice for those looking to embrace the future of driving.
Be sure to evaluate your options carefully and check with your employer to take advantage of this cost-effective, eco-friendly opportunity.
Get in touch with us today to find out more about what we can offer you.