What is EV (Electric Car) Salary Sacrifice?
Electric car salary sacrifice is a scheme that companies can sign up to allowing employees to lease an EV car with significant cost-savings and quality-of-life benefits.
Employees can save 30-60% on any electric car, save on tax and National Insurance, and have all other car-related expenses in one easy, monthly payment.
View the latest EV salary sacrifice deals from EZOO or speak to an expert today.
What cars are available via Salary Sacrifice?
When you look into providers of EV salary sacrifice, not all companies offer the same brands, models, and time options.
At EZOO, we specialise in offering a premium range of electric vehicles, including Porsche, BYD, Tesla, and even Lotus cars. Others like Octopus EV and Love Electric may have broader or less specialised selections.
Due to this, it’s important to ensure the provider you choose offers vehicles which meet your needs and priorities – be it fuel efficiency, luxury models, or visuals and aesthetics.
What are the EV Salary Sacrifice contract terms?
One of the key variables to consider when selecting your EV is the terms and salary options available. The cost of the car and the savings you benefit from is usually based on the tax band you’re in.
Longer-term contracts can reduce monthly payments but also require a larger commitment period and may not be available to those on probation periods. In contrast, shorter terms are often preferred for flexibility.
| EZOO | Octopus EV | Love Electric | Electric Car Scheme | |
| 48-month term | ✓ | ✓ | ✓ | ✓ |
| 36-month term | ✓ | ✓ | ✓ | ✓ |
| 24-month term | ✓ | ✓ | ✓ | ✓ |
| 12-month term | ✓ | ✓ | ✘ | ✓ |
| 3-month term | ✓ | ✘ | ✘ | ✘ |
| Monthly | Subscription service available* | ✘ | ✘ | ✘ |
*Find out more about our car subscription service for businesses here >
What are the salary requirements for Salary Sacrifice?
When choosing an electric vehicle for salary sacrifice there will be different minimum salary requirements which must be considered. This is to ensure affordability and compliance with tax regulations.
Most companies offering salary sacrifice do a good job of making their EV schemes accessible for all income brackets, but there are differences.
EZOO for example allows employees earning £30,000 per annum or less before deductions to participate, and the same goes for Octopus EV.
Love Electric however requires a minimum of £25,000 before deductions per annum and you must maintain over £20,000 after deductions.
Salary options will be similar across providers but they will vary slightly so must be considered for maximising affordability and getting the package best for your needs.
Book a call with one of our experts for more information.
Are there additional benefits for getting a car via Salary Sacrifice?
Beyond the terms and salary options a company provides, some have additional benefits which are worth considering as this will impact your experience with electric vehicle salary sacrifice.
Some noteworthy additional benefits include:
EZOO
- EZOO is a family-run business. This alone comes with a host of benefits in that you deal with people who really care about the personal level of service they provide.
- We also offer a fully managed service including insurance, maintenance, road tax, and more, all in a single bundled payment which makes car ownership easier and lowers stress.
- We have a large focus on premium EV models such as Tesla, Audi, and Polestar offering several models which you won’t find available through other providers.
Octopus EV
- Octopus EV is a large corporation branching from Octopus Energy. They offer a range of EVs for various budgets making them a possibility for mid-range customers.
- They include access to Octopus Energy tariffs to combine home charging solutions for your EV.
- Similar to EZOO, Octopus EV has options to include services such as maintenance and insurance within your package.
Love Electric
- Love Electric focuses on reducing leasing costs rather than the Premium models offered by EZOO.
- They highlight flexibility with shorter-term contracts than some providers.
Electric Car Scheme
- Electric Car Scheme provides calculators for costs and savings making their options easy to understand for those on tight budgets.
- They prioritise accessible EV options, similar to Love Electric.
Find out more about the specific additional benefits included in our EV salary sacrifice schemes >
What electric cars are available to me via salary sacrifice?
The range of electric vehicles available will vary between providers and your desired contract duration, budget, and so on.
You can view our complete list of premium EVs available for salary sacrifice here.
Can I end my EV salary sacrifice contract early?
Early contract termination will require repayment for the time remaining in your term. To find out more, please read our terms and conditions.
How much does it cost the employer to set up an EV Salary Sacrifice scheme?
With EZOO, it’s completely free for your employer, and our EV salary sacrifice scheme helps companies save on tax contributions, attract top talent, and promote Net Zero goals.
You can refer your employer here to get started with your first EV through salary sacrifice.
Will I need a credit check to get a car via Salary Sacrifice?
During the sign-up process companies such as EZOO will do an affordability check when you link up your bank account.
This is not a credit check, and won’t affect or leave a mark on your credit score.
Other providers may vary, so make sure to check this if it’s a concern before entering your information.
Can I purchase the car after the term?
At the end of the term, you will have the ability to renew, or end your contract and move on.
Renewing your contract is a fast, easy process so be sure to contact us towards the end of your term.
Purchasing the car at the end of your term is not currently an option, so if you don’t wish to renew, the car will be picked up and returned as agreed in your contract.
We ask that you ensure your car is in the same condition we delivered it to you – clean, charged to at least 50%, and free of any personal items.
At the point of collection, a member of our team will undertake an inspection of the car, to ensure everything is in order.