Drive a Brand-New Electric Vehicle for Less with Salary Sacrifice
Electric vehicle (EV) salary sacrifice is one of the most cost-effective and tax-efficient ways to drive a brand-new car. By partnering with Express Vehicle Contracts, employers can offer an attractive, hassle-free benefit scheme that saves money for both the business and its workforce, all while driving sustainability goals forward.
What is EV Salary Sacrifice and How Does It Work?
Salary sacrifice is an arrangement where an employee agrees to exchange a portion of their pre-tax (gross) monthly salary in return for a non-cash benefit,in this case, a fully electric vehicle.
Because the monthly deduction is taken before Income Tax and National Insurance Contributions (NIC) are calculated, employees reduce their overall taxable income, resulting in substantial savings compared to personal leasing or buying outright.
Employer Benefits
Salary Sacrifice benefits for employers
1
Tax & NIC Savings
Reduce employer National Insurance Contributions on the sacrificed salary amount.
2
Attract & Retain Talent
Offer an enhanced, competitive reward package that boosts employee satisfaction.
3
Zero Setup Costs
Simple implementation with minimal administrative overheads.
4
Sustainability Goals:
Lower corporate carbon footprint and support the transition to net-zero emissions.
The Complete All-Inclusive Package
With Express Vehicle Contracts, salary sacrifice isn't just about leasing a car—it’s a hassle-free, complete motoring package. Every lease includes:
Brand-New Electric Car: Choose from a wide selection of top-tier EV manufacturers.
Full Comprehensive Maintenance: Routine servicing, maintenance, and replacement tyres included.
Breakdown Assistance: Complete breakdown cover for peace of mind.
Road Tax (VED) & Insurance Cover: Fully managed throughout the agreement term.
No Upfront Credit Checks for Employees: Simple, straightforward setup with low upfront costs.
Employee Benefits
Salary Sacrifice benefits for employees
1
Significant Tax Savings
Save on Income Tax and National Insurance Contributions.
2
All-Inclusive Hassle-Free Motoring
Maintenance, servicing, tyres, insurance, and breakdown cover bundled into one fixed monthly deduction.
3
Low Running Costs
Charging an EV is significantly cheaper per mile than petrol or diesel, plus exemption from ULEZ and Congestion Charges.
4
No Large Deposit Required
Access brand-new EV technology with low upfront financial barriers.
Ready to Launch Salary Sacrifice for Your Business?
Whether you are looking to introduce a new employee benefit scheme or upgrade your corporate sustainability policy, Express Vehicle Contracts makes the transition seamless.
Salary Sacrifice FAQs
Gross Lease Rental - Tax & NIC Savings + Benefit-in-Kind (BiK) = Your Net Monthly Cost
Gross Monthly Cost: The total monthly lease rental, including maintenance, servicing, breakdown cover, and tyres.
Minus Tax & NIC Savings: The reduction in Income Tax and National Insurance based on your marginal tax band.
Plus Benefit-in-Kind (BiK): HMRC applies a low BiK rate for zero-emission electric vehicles, keeping tax overheads minimal.
Equals Net Monthly Cost: The actual impact on your take-home pay.
Eligibility is defined by the employer. Typically, schemes are open to permanent employees aged 21 or over who have completed a minimum period of continuous service (e.g., 6–12 months) and whose post-deduction pay remains above the National Minimum Wage.
Most salary sacrifice lease agreements run between 24 and 36 months, offering flexibility and access to modern EV battery technology.
Scheme policies include specific provisions for lifestyle events and early terminations (such as resignation, redundancy, or long-term sick leave) to protect both the employer and employee.
