As the UK accelerates towards a greener future, electric vehicles (EVs) are becoming an increasingly popular choice for drivers. However, the upfront costs associated with EVs can be a barrier for many. Enter the salary sacrifice scheme, a tax-efficient way for employees to access brand-new electric cars at a fraction of the cost.
What is a Salary Sacrifice Scheme?
A salary sacrifice scheme is an arrangement between an employer and employee where the employee agrees to give up a portion of their gross salary in exchange for a non-cash benefit. In this case, an electric vehicle. The sacrificed amount is deducted before tax and National Insurance contributions, leading to significant savings for the employee. The employer leases the vehicle and provides it to the employee as part of the benefits package.
Why Consider Salary Sacrifice for an Electric Vehicle?
If you’re looking for a cost-effective and tax-efficient way to drive a brand-new electric vehicle, salary sacrifice could be the perfect solution. Salary sacrifice offers a host of financial and practical benefits, making it an attractive option for employees who want to go green without breaking the bank.
Significant Tax Savings
By reducing your gross salary, you lower your taxable income, resulting in decreased income tax and National Insurance payments. This can lead to savings of up to 30-60% on a new electric vehicle, depending on your tax bracket.
Lower Monthly Payments
Obtaining an EV through a salary sacrifice scheme often results in lower monthly payments compared to personal leasing options. This is because business leases or hires aren’t subject to VAT, allowing for a 20% saving on the agreement.
Reduced Running Costs
Electric vehicles are generally cheaper to run than their petrol or diesel counterparts. Charging an EV is often more cost-effective than refueling with traditional fuels, especially if you can charge at home. Additionally, EVs have fewer moving parts, leading to lower maintenance costs.
Access to a Range of Vehicles
Salary sacrifice schemes often provide access to a wide selection of electric vehicles, from compact city cars to larger SUVs, allowing you to choose a vehicle that suits your needs and lifestyle.
Environmental Benefits
Driving an electric vehicle contributes to reducing carbon emissions and air pollution, aligning with broader environmental goals and promoting sustainability.
How Does It Work?
Salary Sacrifice is simple to organise through your employer. Typically, you would be looking at the following steps:
Agreement: You enter into a salary sacrifice agreement with your employer, agreeing to reduce your gross salary by a fixed amount.
Vehicle Selection: Choose an electric vehicle that fits within your budget and meets your requirements.
Lease or Hire Arrangement: Your employer receives the vehicle and provides it to you as part of your benefits package.
Salary Adjustment: The cost is deducted from your gross salary, reducing your taxable income.
Enjoy the Benefits: Drive your new electric vehicle, enjoying the financial and environmental advantages it offers.
Why Should Businesses Choose Hire Salary Sacrifice Cars From EVision?
There are plenty of compelling reasons to make EVision Electric Vehicles your first choice for sourcing salary sacrifice electric cars, whether you’re an employer or an employee.
No Long-Term Commitment or Risk for Employers
One of the biggest concerns for businesses offering salary sacrifice schemes is what happens if an employee leaves. With traditional leasing providers, the employer may be left with a costly, unused vehicle. At EVision, we remove that risk. Our flexible hire agreements allow you to return the vehicle at any time, with no early termination penalties. This gives employers peace of mind and makes implementing a salary sacrifice scheme much simpler and safer.
Rapid Vehicle Availability
We understand that waiting over a year for a new electric vehicle is far from ideal. That’s why EVision offers an impressively fast turnaround on vehicle hire. In many cases, cars, vans and trucks are available for collection the same day. Need it delivered? No problem. We offer quick and efficient delivery across the UK, helping you or your staff hit the road with minimal delay.
Unrivalled Choice of Electric Vehicles
Unlike many salary sacrifice providers that limit your options, EVision offers a broad and diverse range of electric vehicles to suit different needs and preferences. From compact city cars such as the BMW i3 or saloons like the Mercedes EQS, we’ve got you covered. With plenty of electric vans for hire for commercial use, our fleet features market-leading models from trusted brands such as Vauxhall, Renault and Ford.
Modern, High-Quality Vehicles
When you hire an electric vehicle from EVision, you’re getting the best. The majority of our electric vehicles are either brand new or under three years old. We maintain our fleet to the highest standards to ensure comfort, reliability, and a first-class driving experience. Whether you’re commuting or covering business miles, you can expect modern features, excellent range, and low running costs.
A Trusted UK Leader in EV Hire
As one of the UK’s leading electric vehicle hire specialists, EVision brings expertise, flexibility, and customer-focused service to every hire. We’re dedicated to helping businesses make the switch to sustainable transport easily and affordably through salary sacrifice.
By choosing EVision, you’re not just hiring an electric vehicle, you’re investing in a greener, smarter future for your business and your employees.
Ready To Find Out More Or Book An Electric Vehicle Hire?
Salary sacrifice schemes present a compelling opportunity for employees to access electric vehicles affordably while enjoying substantial tax benefits. By participating in such a scheme, you not only save money but also contribute to a more sustainable future.
At EVision Electric Vehicles, we support initiatives that make electric driving accessible to more people. If you’re interested in exploring our range of electric vehicles, visit our full fleet of vehicles on our website, and get in touch today.
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All information correct as of 10th June 2025.
