Salary Sacrifice Scheme Electric Vehicles are more popular than ever with 9 out of 10 cars that are on a salary sacrifice scheme being an EV.
The massive shift surrounding EV (electric vehicle) adoption comes from initiatives put in place by the UK government. The introduction of zero and extremely low rate benefit-in-kind taxation rates have been well received by companies and their employees.
HMRC TAX CHANGES
Her Majesty’s Revenue & Customs wants people to go green wherever possible. This is why they are rewarding anyone who drives a more environmentally friendly vehicle.
So cars with lower CO2 emissions are taxed at a significantly lower rate compared to those with higher emissions.
The Benefit in Kind tax on electric company cars is currently set at just 1%. As a result, employers and employees are able to make substantial savings on Tax and National Insurance.
This is how you could potentially drive an electric company car this 2020/21 tax year, all at a very low cost, all thanks to HMRC. The BiK tax will rise to only 2% as of April 2022, still remaining considerably low for EV drivers.
TWO WAYS TO BENEFIT FROM AN ELECTRIC COMPANY CAR
If an employee already drives a company car for business purposes and also has access to the car for personal use then the UK Government taxes for this benefit.
The great news however is that should someone choose an electric company car, they will pay 1% Benefit in Kind tax for the 2021/2022 tax year. This rises to just 2% for the 2022/2023 tax year.
If you do not have a company car, do not worry. You can still access the benefits via a salary sacrifice scheme. The employer and employee will need to sign an agreement (which EVision can provide – click here).
The company pays for the car and the employee takes a reduction in salary.
The employer saves money on the reduction in order to pay for a fully electric company car.
BEST ELECTRIC VEHICLES TO CHOOSE
If you work in the city, then one of the best electric cars to take on a salary sacrifice scheme is the BMW i3. This incredibly nippy and compact EV is actually incredibly spacious inside. The driver and front passenger have ample room! What’s more is that if you have guests in the back for a short journey, they will be more than happy. There is also plenty of boot space, perfect for storing all the necessities required for those important city meetings.
Employees working and commuting in London can benefit from even further savings, as they won’t need to pay the ULEZ (Ultra Low Emission Zone) charges. Furthermore, EV city drivers won’t have to pay the London Congestion Charge.
Tesla Model S
For those looking to make an impact whilst also improving their green credentials, the Tesla Model S is a perfect choice! Especially when considering Salary Sacrifice Scheme Electric Vehicles.
Stylish and sophisticated, nothing says “company executive” more so than being seen in one of the world’s most technologically advanced pure electric supercars.
SALARY SACRIFICE SCHEME ELECTRIC VEHICLES ARE THE FUTURE
There is definitely a future mobility role for EV-based salary sacrifice schemes. They are now more than ever becoming a key element in the wave of new benefits and initiatives for employees. For a company to offer an EV on a salary sacrifice scheme brings with it innovative options for employees. All with a very limited investment required by the employer.
PANDEMIC CHANGING ATTITUDES
As the pandemic in the UK hopefully draws to an end, more and more employees are returning to the office, following a long stint of working from home.
However, employees are still concerned about various health related factors including being in close proximity to the general public. These concerns are especially felt when it comes to public transport, where everyone is tightly squeezed together.
The desire for low cost travel options, that tick the eco-friendly box and provide additional safety is now greater than ever. This is where electric vehicles provide the perfect solution.
An electric vehicle provides zero emission motoring and with a salary sacrifice scheme in place, is a complete no brainer.
CONTACT THE EVISION TEAM TODAY
Do you want to experience driving a fully electric car? Encounter the ultimate electric vehicle on the road, and hire today from EVision.
Hires can be made directly on our website, or should you require further information on Salary Sacrifice Scheme Electric Vehicles, give our team a call on: 01634 914063. If you have any additional questions, our experienced team would be happy to help!