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The Ground-breaking Green Employee Benefit

The Electric Car Scheme

Helping employees switch to driving electric

In April 2020 the government launched a tax incentive to help employees switch to driving electric cars, go green, and save their income tax. We looked at setting this up for our team but came away disappointed as we could not access the full tax benefits.

This is where The Electric Car Scheme comes in

The Electric Car Scheme is an innovative new employee benefit that helps you and your employees save 30-60% on any electric car through salary sacrifice (effectively paying from your salary before tax). It’s funded by the Government to encourage a switch to electric cars, and help the UK get to net zero.

It’s like the cycle to work scheme for electric cars, and The Electric Car Scheme sets up and manages the salary sacrifice scheme for your company at no cost.

It’s Easy Being Green

The environmental benefits of electric cars are obvious, there are no greenhouse gas emissions, and switching to electricity as the source of fuel eliminates more than 70% of the carbon impact of driving.

There are also other myths around electric cars. Some worry about running out of battery on the road, but as most cars now have a range of over 200 miles, and 99% of car journeys are under 100 miles, this is no longer a concern. The convenience of home charging compared to standing around at petrol stations is also a big plus!

Going Green is significantly cheaper than you think – the cost of fuel per mile is 4-5x cheaper for electric cars compared to their petrol equivalent (possibly even more with the price of fuel where it is today!).

As a country, we have committed to no new diesel or petrol cars being sold by 2030, so we will all be embracing this change before too long. And indeed, many progressive employees and employers are already doing this today.

Ground-breaking Employee Benefit

Modern employees prefer to work for employers that match their values. Looking after our planet and moving to net zero is becoming increasingly more important to employees.

In addition, the war for talent is heating up. Talent attraction and retention is more difficult now than ever – with the impact of Brexit, the pandemic (and the Great Resignation coming up after Christmas!).

With a typical employee saving of c.£10,000 over 3 years, green salary sacrifice benefits like The Electric Car Scheme are of significant value, and a game changer when it comes to attracting and retaining the best!

Getting started for your business

Setting up The Electric Car Scheme couldn’t be simpler. You can find out more on this website.

Frequently Asked Questions

Absolutely! Thanks to  salary sacrifice scheme, employees can lease an EV and also save a significant amount on the monthly cost – between 30% – 60% in fact. The saving is generated through reductions in national insurance and income tax payments, effectively paying from your salary before tax. Find out more here.
It’s relatively straightforward:
  1. Employees give up (sacrifice) their pre-tax (gross) salary
  2. Their company leases an electric car for the employee to drive
  3. Employees drive the car for business or personal use
Find out more here.

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