With the cost-of-living crisis heading the domestic political agenda, an EV salary sacrifice car scheme costs nothing to introduce, works for all employees, and can save workers hundreds of pounds per month.
An innovative electric car scheme holds the key to solving the two crises facing the world today – the climate emergency and the cost-of-living crisis.
After a summer of record-breaking temperatures and with the energy crisis in the headlines, a global movement is revolutionising the way we travel, promoting vehicles that have zero impact on local air quality and a tiny carbon footprint compared to their petrol and diesel equivalent.
Closer to home, soaring inflation in the UK is putting employers under extreme pressure to protect their workforces from the cost-of-living crisis, amid widespread demands for double-digit pay rises.
Says Steve Tigar, founder and CEO of loveelectric.cars, “Amid deafening calls for businesses to reduce their greenhouse gas emissions and mounting demands for pay rises, there is a way for businesses of all sizes to meet their sustainability objectives and boost pay packets without baking higher costs into their future budgets.
“A salary sacrifice car scheme works for all companies, from SMEs to large corporates, by allowing staff to pay for a clean, green car out of gross, pre-tax income. This can save hundreds of pounds in income tax and national insurance every month.
“A higher rate taxpayer typically saves about 50% compared to sourcing a car directly.”
The lease of a £43,000 Polestar 2, for example, would cost an employee from as little as £323 per month (36 months, 10k miles per annum) net with no deposit via a salary sacrifice car scheme, compared to £653 per month to acquire the same car via PCP directly from Polestar.
Salary sacrifice works for all employees – according to the BVRLA, which represents the UK’s leasing industry, over 60% of salary sacrifice drivers are basic rate taxpayers.
Plus, the all-inclusive nature of a salary sacrifice car shelters employees from any future cost shocks.
“Our salary sacrifice scheme bundles service, maintenance, and breakdown cover into the monthly rental,” said Tigar.
And with petrol and diesel prices 43% higher than they were a year ago, giving employees access to a zero-emission electric car through salary sacrifice will save them hundreds of pounds in fuel costs and burnish a business’s environmental credentials as its workplace car park start to fill with zero-emission cars.
“The rapid growth of salary sacrifice schemes echoes the expansion of company car schemes in the 1970s, when employers sought new ways to recruit and retain staff while respecting wage restraints,” added Tigar.
“Fast forward 50 years and employers can now offer a salary sacrifice car to their entire workforce, not just a small cohort of company car drivers, providing exceptional money-saving value to staff in this cost-of-living crisis, while greening the workplace car park.”
