EV Salary Sacrifice
Electric car salary sacrifice schemes for UK employers
Electric car salary sacrifice lets an employee lease a brand new EV through their gross salary, saving income tax and National Insurance, while the employer typically pays nothing to run the scheme and can save on National Insurance too. The low benefit-in-kind rate on electric vehicles is what makes the numbers work, and it has made EV salary sacrifice one of the fastest-growing UK employee benefits.
7 UK providersIndependent profilesNo commercial bias
Schemes differ on the vehicles available, how early-termination risk is covered, what is bundled into the monthly cost, and whether the provider is an SME-focused specialist or part of a larger fleet operation. The providers below cover both ends of that range. Compare their profiles, then run a free Benefits Healthcheck to see where an EV scheme fits your wider package.
What to look for in a EV salary sacrifice provider
Early-termination protection
If an employee leaves or can no longer pay, someone has to cover the rest of the lease. Check whether protection applies from day one or only after a qualifying period, and who actually carries the risk.
What is bundled in
Most schemes wrap insurance, maintenance, breakdown and road tax into one monthly figure. Confirm exactly what is included so you can compare providers like for like.
Benefit-in-kind and the savings
EVs carry a low benefit-in-kind tax rate, which drives the savings. That rate is set to rise gradually, so check the current and future figures before you launch.
Specialist versus fleet provider
Salary sacrifice specialists focus on fast SME onboarding; larger fleet operators suit complex or mixed fleets. Match the provider to your size and how much admin you want to carry.
Popular EV salary sacrifice comparisons
Frequently asked questions
How does electric car salary sacrifice work?
An employee gives up part of their gross salary in exchange for a leased electric car. Because the deduction comes out before tax, they save income tax and National Insurance, and the employer also saves on National Insurance.
Does an EV salary sacrifice scheme cost the employer anything?
Most schemes are free for the employer to set up and run, with the cost met by the employee through salary sacrifice, and employers can save on National Insurance. The main thing to weigh is early-termination risk, which most providers cover.
Why is electric car salary sacrifice so popular?
The low benefit-in-kind tax rate on electric vehicles makes the savings substantial, giving employees a new EV for less than a personal lease while supporting an employer's sustainability goals.
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See where EV salary sacrifice fits in your benefits package
Run a free PerkIQ Benefits Healthcheck for a scored view of your whole package, including EV salary sacrifice, in under five minutes.
