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The Electric Car Scheme

How does the electric vehicle scheme work?

"Employees drive a brand new electric car, which is paid for with a reduction in their gross salary. You lease the vehicle as an employer, provide it as a benefit to the employee, and recover the cost through salary sacrifice. All at no cost to your business."



Is an electric car worth the salary sacrifice?

One significant advantage of purchasing an electric vehicle through salary sacrifice is that it can significantly reduce your monthly car expenses. As previously stated, participating in a salary sacrifice scheme means paying less tax, but how does that work?

The primary savings come from paying less income tax.


Along with income tax, you can save money by making national insurance contributions (NIC). Because NIC, like income tax, is based on your salary, leasing through a salary sacrifice scheme will lower your NIC costs.




"Thom Groot, CEO of The Electric Car Scheme, lamented the decision to cut the Plug-in Car Grant, but said alternatives were available to drivers.


He added: "It is disappointing that the Government is reducing support for the transition to net-zero at a time where they are collecting record levels of fuel duty from petrol and diesel car drivers filling up at the pumps.

“We have a long road to go to get to 100 percent of cars being electric by 2050, and Government support is required to help the UK's drivers make the switch.

“The most affordable way to access an electric car now is through The Electric Car Scheme.

“The Electric Car Scheme works via a salary sacrifice and saves employees between 30 and 60 percent on an electric car"

Article The Express

The Current Gov Grants still available are:

Landlords

Flat renters

Commercial




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