“Offering Electric Vehicles in Salary Sacrifice Car Schemes: A Green and Cost-Effective Solution for Employers”
Are you looking for ways to enhance your organization’s green credentials while also providing a valuable employee benefit? Offering electric vehicles (EVs) as part of a salary sacrifice car scheme could be the solution you’ve been searching for.
With the increasing interest in EVs among employees, incorporating them into your benefits package can not only support your environmental goals but also help your staff save money. In this blog post, we’ll explore why EVs are a smart choice for employers and employees alike, and how a salary sacrifice car scheme can benefit both parties.
The Rise of Electric Vehicles
The popularity of electric vehicles is on the rise, with more companies and individuals opting for environmentally friendly transportation options. According to the British Vehicle Rental and Leasing Association, the number of vehicles leased via salary sacrifice grew by 68% year on year between 2022 and 2023, with almost 90% of those vehicles being electric or hybrid.
The Benefits of Offering EVs in a Salary Sacrifice Scheme
Encouraging employees to choose electric vehicles can have long-term benefits for both the environment and your organization. With the introduction of low emissions zones and the impending ban on petrol and diesel vehicles, now is the perfect time to promote the adoption of EVs among your workforce.
By including electric or hybrid vehicle options in your benefits package, you can attract and retain top talent while also reducing your carbon footprint. Employees who participate in an electric car scheme may feel a greater sense of loyalty to your company, knowing that they have access to a valuable benefit that sets you apart from competitors.
The EV Market
The electric vehicle market is growing rapidly, with Britain recently registering its millionth electric vehicle. Fully battery electric vehicles now occupy around 13.1% of the market, and fleet and business demand for EVs is on the rise. According to forecasts, 414,000 new BEVs are expected to hit UK roads in 2024, highlighting the increasing popularity of electric vehicles.
How a Salary Sacrifice Car Scheme Works
A salary sacrifice car scheme allows employees to reduce their overall wage entitlement in exchange for a company car. This arrangement benefits both parties, as employees pay less tax and national insurance on a reduced salary, while employers also pay lower NI contributions. Rates of tax on EV benefits in kind are lower than those for petrol and diesel vehicles, making EVs an attractive option for both employers and employees.
Why Offer a Salary Sacrifice Car Scheme?
Employers looking to achieve their ESG goals can benefit from offering an EV salary sacrifice scheme. Not only does it help reduce the carbon footprint of employees’ commutes, but it also appeals to staff who prioritize environmental sustainability. Research has shown that employee activism is a key driver of achieving ESG goals, making the opportunity to drive a ‘greener’ vehicle a valuable employee benefit.
In Conclusion
Incorporating electric vehicles into a salary sacrifice car scheme is a win-win for employers and employees. By offering EVs as part of your benefits package, you can support your organization’s green credentials, attract top talent, and help your staff save money. With the EV market growing rapidly and the shift towards sustainable transportation options, now is the perfect time to consider implementing an EV salary sacrifice scheme in your organization.