Increasing Demand for Electric Vehicle Salary Sacrifice Schemes

The demand for electric vehicle (EV) salary sacrifice schemes is rapidly increasing as businesses aim to take advantage of low Benefit-in-Kind (BiK) tax rates while also reducing their carbon footprint. Leasing and fleet management specialist, Fleet Alliance, has reported strong uptake of its salary sacrifice scheme, with dozens of companies signing up this year.

One of Fleet Alliance’s new customers is HFD Group, a property, data services, and energy provider that has introduced a salary sacrifice scheme for all of its 135 employees. The company previously operated a company car scheme but has now mostly replaced it with the new scheme. Under this scheme, employees who previously qualified for a company car now receive a cash allowance to select their own vehicles, with the option of choosing electric cars. HFD Group’s finance director, Stuart Teape, highlighted that the salary sacrifice scheme aligns with the company’s carbon neutrality policy and is seen as an additional benefit for employees.

Fleet Alliance CEO, Andy Bruce, emphasized the benefits of their scheme, including monthly savings of hundreds of pounds for employees who choose electric cars. The scheme takes advantage of the current low tax rates for EVs, which stand at just 2% until the end of 2024/25. Bruce also mentioned that the scheme presents an opportunity for businesses to reduce their collective carbon footprint by encouraging employees to switch to zero-emission vehicles.

The success of the HFD scheme reflects the experiences of other businesses that have signed up with Fleet Alliance. In addition to the cost savings, the scheme offers a simple setup process and provides a home charger for employees who opt for an electric car as part of the monthly cost.

With concerns about global warming and environmental impact, many employees are looking for ways to reduce their carbon footprint. Electric vehicle salary sacrifice schemes provide a timely and attractive option for both employees and businesses to embrace sustainable mobility.

– Electric Vehicle (EV): A vehicle that is powered by electricity instead of conventional fuels like gasoline or diesel.
– Salary Sacrifice Scheme: A scheme where employees can exchange a portion of their salary for certain non-cash benefits, such as a company car or an electric vehicle.

Sources: Fleetworld, Fleet Alliance