Salary sacrifice means that employees can save up to 40% on an electric vehicle by exchanging part of their salary; the gross amount sacrificed reduces the employee’s income tax and national insurance (NIC) liability, as well as the employer’s NIC liability.
Salary sacrifice also allows employees to switch to a new EV with zero upfront outlay, in addition to enjoying lower vehicle running costs.
The benefit offered by DriveElectric, it claims, is that the company has EV expertise stretching back many years, with dedicated consultants to advise about electric cars, supported by tax and compliance specialists.
DriveElectric will assist organisations to promote salary sacrifice schemes to employees and can organise EV test drive events. DriveElectric also offers a secure portal for employers and their employees to order, manage and track their EV.
Example of cost reductions offered by salary sacrifice compared to a personal lease for an employee include a £260 monthly saving on a Tesla Model Y, or a £319 monthly saving on a Porsche Taycan, for a 40% taxpayer.
Salary sacrifice enables employers to attract, reward and retain the best employees. DriveElectric manages the entire process, with expert HR, policy and tax support.
DriveElectric can also supply a home charger if needed, which can be included in the salary sacrifice package, as well as provide support with solutions for workplace charging, solar, vehicle to grid, and energy management and optimisation via DriveElectric’s sister company CrowdCharge.
Says Mike Potter, Managing Director of DriveElectric:
“Salary sacrifice offers a wide range of compelling benefits. Bringing down the monthly cost of electric cars helps more drivers make the switch to EVs. This in turn reduces drivers’ vehicle running costs and helps employers to offer attractive benefits for their staff. Reducing emissions also accelerates an organisation’s progress to Net Zero. And this is all backed up by DriveElectric’s unique 15 years of expertise with electric vehicles.”