What's the best salary sacrifice car scheme in the UK? We've put together a comparison comparing the top five schemes and tips on which might be the best for you.
Amid a global green revolution, one change is creating waves on the streets and in discussions around dinner tables – the rise of the electric vehicle (EV). The hum of an electric motor, the whisper-quiet start of a morning commute, and the palpable sense of innovation: the electric revolution is here, transforming the way we perceive and experience mobility.
Yet, as with any revolution, there are questions, hesitations, and myths.
"Are they truly better for the environment? What about their range? And surely, the costs must be prohibitive?"
You're not alone in asking these questions; we’ve created this guide here to provide clarity.
Enter loveelectric. As pioneers in the EV landscape, we're not just spectators of this transformation; we're at its forefront, driving change and making it more accessible for everyone. Our commitment? Making driving an electric car not only feasible but an undeniably smart choice for your wallet.
We're bridging the gap between aspiration and reality through our EV salary sacrifice scheme. Imagine getting behind the wheel of your dream electric car while simultaneously saving on income tax and national insurance, thanks to super-low benefit-in-kind rates. It's not a distant dream; it's today's reality, courtesy of loveelectric.
So, as you ponder the transition to electric, our guide is here to illuminate the journey, debunk the myths, and introduce you to a future where the road ahead is not just electric but also incredibly empowering.
As electric vehicles gain traction (quite literally) on our roads, they still face many questions and myths. It's natural to be curious, especially when considering a switch from the known to the new. But, armed with facts, making an informed decision becomes simpler. Let's address some of the most common misconceptions head-on, starting with the hot topic of range and reliability.
"Range anxiety" – it's a term that has almost become synonymous with electric vehicles. Will the car run out of charge mid-journey? Can you trust an electric vehicle for longer drives? The truth is that range anxiety is fast becoming a relic of the past, thanks to rapid advancements in EV technology.
Modern electric cars are built with sophisticated battery systems that offer impressive ranges. For instance, many electric vehicles boast well over 200 miles on a single charge, with top models like the Tesla Model Y Long Range pushing beyond 330 miles. Compare this to the average daily drive of most individuals, which often doesn't exceed 40 miles, and it becomes clear that range isn't an issue for most drivers.
Furthermore, charging infrastructure has experienced significant growth, with charging stations becoming more ubiquitous across the country. And with rapid chargers on the rise across the UK, many EVs can be juiced up to 80% in under 30 minutes, making longer trips more manageable.
Reliability is another feather in the cap for electric cars. With fewer moving parts than traditional internal combustion engine vehicles, EV drivers visit the shop less often. Many users report fewer breakdowns and reduced maintenance needs, translating to more peace of mind on the road.
In essence, when considering range and reliability, modern electric vehicles stand tall, ready to meet and often exceed the demands of daily driving.
Battery longevity remains one of the pivotal concerns for potential EV buyers. However, it's essential to distinguish between early EV models and the technological wonders we see today. Electric car batteries have undergone immense evolution in a relatively short time, making them more durable, efficient, and reliable.
Modern electric car batteries are designed to last. On average, they can retain about 80% of their original capacity even after being driven for 100,000 miles or more. This longevity can be attributed to better battery chemistry, advanced cooling systems, and built-in management systems that ensure even wear and tear. Moreover, many manufacturers now offer battery warranties that extend up to 8 years or 100,000 miles, giving added peace of mind to potential owners.
In terms of maintenance, EV batteries are comparatively low fuss. Unlike traditional car engines that require frequent oil changes and tune-ups, electric car batteries demand minimal direct maintenance. Periodic software updates, ensuring proper charging habits and occasional checks are typically all they need.
Ready to get started? Find out how you can get a fully-maintained electric car with loveelectric.
The environmental merits of electric vehicles are sometimes questioned, with sceptics pointing towards the carbon footprint of battery production or the sources of electricity used for charging. While these are valid concerns, EVs still emerge as a cleaner, more sustainable option when viewed holistically.
For starters, electric vehicles produce zero tailpipe emissions. This immediately reduces the pollutants that cause smog, acid rain, and other environmental hazards. It also means healthier air quality in urban areas, which can profoundly impact public health.
While it's true that producing an electric car battery, particularly its lithium component, does have an environmental footprint, this impact is offset over the vehicle's lifetime. As renewable energy sources like solar and wind become more prevalent in the power grid, the carbon footprint of charging an EV diminishes.
.png)
Furthermore, studies have shown that even when charged primarily from fossil fuel-derived electricity, electric cars still generally produce fewer overall emissions than their gasoline counterparts over their lifespan. As the world continues to shift towards cleaner energy solutions, the environmental advantages of EVs are only set to increase.
In summary, while no mode of transportation is entirely devoid of environmental impact, electric vehicles represent a significant stride forward in our journey towards a more sustainable and cleaner future.
Safety: It's a paramount concern when choosing any vehicle, and electric cars are no exception. As with any new technology, there have been myths and misconceptions surrounding EV safety. However, the reality is that electric vehicles today are engineered with some of the most advanced safety features available in the automotive world.
Low Center of Gravity: One of the innate design benefits of electric vehicles is the placement of the battery pack, usually at the vehicle's base. This positioning provides a lower centre of gravity, enhancing stability, reducing the risk of rollover, and improving overall handling.
Safety plus a better driving experience – it doesn’t get better than that!
Enhanced Crash Protection: Due to the absence of a bulky combustion engine at the front, many electric vehicles have a larger crumple zone. In the unlikely event of a collision, the car can absorb impact more effectively than its fossil fuel counterpart, safeguarding the occupants inside.
Advanced Driver-Assistance Systems (ADAS): Electric cars often come equipped with state-of-the-art ADAS. These systems include features like automatic emergency braking, lane departure warnings, blind-spot detection, and adaptive cruise control, to name a few. These not only enhance the driving experience but also actively prevent potential accidents.
Reduced Fire Risk: While EVs catching fire have made headlines, it's essential to contextualise these events. Statistically, EVs are no more likely to catch fire than conventional vehicles, and the advancements in battery technology and protective mechanisms have continually improved safety standards. Plus, driving around without a flammable fuel tank is a plus for any driver!
Quiet Yet Safe: While EVs are notably quiet, leading to concerns about pedestrian safety, many now come with artificial noise systems at lower speeds to alert those nearby, ensuring safety without compromising on the peaceful drive electric cars offer.
Modern electric vehicles go the extra mile to ensure their passengers' safety. They not only match the standards set by traditional cars but often surpass them, offering drivers and their loved ones both peace of mind and the promise of an exciting, secure journey.
The electric car market is a testament to innovation and sustainable thinking. In the past few years, we've witnessed an explosion in the variety and sophistication of EV models, addressing diverse needs and budgets. As electric vehicles become mainstream, consumers are presented with a delightful quandary: Which EV suits them best?
Kia EV6
Kia's EV6 epitomises the evolution of electric cars, boasting a range of over 300 miles, depending on the variant. Battery longevity remains a forte, with Kia’s cutting-edge technology ensuring minimal degradation over time. Sustainability forms the backbone of the EV6, with eco-friendly materials championed in its design. As for safety? Expect features like Lane Following Assist and Forward Collision-Avoidance Assist to elevate your driving experience.
Tesla Model Y
Tesla’s reputation in the EV world is unparalleled, and the Model Y exemplifies this. Expect to cover distances of up to 326 miles on a single charge. Battery consistency and longevity are Tesla trademarks, and the Model Y doesn't fall short. Moreover, with a commitment to green technology and pioneering safety features like Autopilot, it remains a top choice for many.
MG4
A relative newcomer, the MG4 holds its own with a competitive range and modern battery systems. The brand focuses on bringing electric driving within reach for many, combining affordability with innovation. Safety and comfort remain at the forefront with features like Adaptive Cruise Control and Traffic Jam Assist.
Audi Q4 e-tron
Audi's Q4 e-tron blends style with substance. Depending on the chosen model, expect ranges from 210 to 240 miles. Battery reliability is top-notch, and Audi’s commitment to a sustainable future shines through in the e-tron series. Plus, with safety systems like Pre-Sense Front and Lane Departure Warning, it's clear that safety is paramount.
So, how does one sift through these stellar options? Consider your primary needs. If daily commutes dominate, range may not be the topmost priority. But if you’re planning frequent long drives? Opt for an EV known for extended range and rapid charging. Whatever your driving expectations, factor in tech features, safety enhancements, and brand reputations. With upcoming models set to push boundaries even further, staying informed will ensure your choice remains relevant and rewarding.
For many, the initial cost of an electric vehicle can feel like a financial hurdle. But what if there was a way to make owning an electric car environmentally friendly and financially savvy? Enter EV salary sacrifice, a win-win initiative that benefits employees and employers alike.
At loveelectric, we specialise in EV salary sacrifice, offering you huge savings between 30-60% on your monthly car lease, depending on your tax bracket.
In a nutshell, a salary sacrifice scheme allows you to give up a portion of your pre-tax salary in exchange for a non-cash benefit—in this case, an electric car. This results in lower income tax and National Insurance contributions, effectively reducing the cost of your new vehicle.
One of the major incentives for choosing an electric car is the super-low Benefit-in-Kind (BiK) tax rate. Unlike traditional petrol or diesel cars that could have a BiK rate upwards of 20-30%, EVs enjoy a rate of just 2%. This adds further financial viability to the equation, making electric cars an exceedingly cost-effective option.
Our mission at loveelectric is simple: to make electric cars affordable and accessible for all. We collaborate with businesses across the UK to provide tailor-made solutions that benefit employees and their companies. When you choose loveelectric, you’re not just getting a car; you’re joining a community of forward-thinking organisations and individuals dedicated to a greener, more sustainable future.
The financial benefits are just the tip of the iceberg. When you factor in the positive environmental impact and the cutting-edge safety features modern electric vehicles offer, the scales tip heavily in favour of making that switch.
Considering an electric car? You're not alone in weighing the pros and cons. From debunking myths about range and battery life to exploring the latest safety features, there's a lot to consider. Worried about the cost? With our EV salary sacrifice scheme, an electric car becomes a smart financial move, not just an eco-friendly one.
So, what's holding you back? At loveelectric, we're here to help you drive into a cleaner, safer, and more sustainable future. Make the switch. Make a statement. Choose electric.
.jpg)
The modern workplace is an ever-evolving ecosystem. With the 2020s fully underway, the priorities of employees are shifting. So, before we take a look at the top employee benefits, the first question we need to ask is: what do employees want from their workplace?
In recent years, UK workers have placed increasing value on a healthy work-life balance, closely followed by the need to reduce their monthly cost wherever possible.
All of the employee benefits explored below align with these key values. This is incredibly important when considering employee benefits; get it wrong and you may miss out on a huge talent pool, as 54% of employees are willing to take a pay-cut if it means working at a company with better values.
To summarise: people just want to work at a company that reflects their own values.
Rewarding employees effectively is not just a kind gesture – it's a prudent and strategic business move. As we move into 2024, it's crucial to understand what ranks as the best employee benefits. This isn't just about salary anymore; it's about creating a workplace that acknowledges, supports, and enriches an employee's life, both inside and outside of the office.
In this comprehensive guide, we'll delve into the top ways companies are choosing to reward staff, focusing on benefits that resonate most deeply with today's workforce. From the flexibility of modern working patterns to the allure of electric car schemes, let's discover how to make your business a top destination for the best talent out there.
In the era of digitisation and remote capabilities, the traditional 9-to-5 workday has been redefined. Flexible working has surged from a niche perk to one of the best employee benefits sought after by professionals; regardless of the sector.
It’s become so important in fact, that 58% of employees would change jobs or industries if they were able to work remotely or in a hybrid working pattern.
For employees, this flexibility translates to a tailored work-life balance, allowing them to navigate personal commitments and mental well-being with greater ease. The reduced commute time, potential savings on transportation, and the comfort of one's own space can dramatically increase daily productivity and satisfaction. No longer tethered to a desk, employees find a renewed sense of freedom, giving them the autonomy to design a workflow that aligns with their peak productivity hours, whether that's an early morning burst or a late-night brainstorm.
Practical ways to implement flexible working for your employees
But flexible working isn’t just great for employees. Employers are recognising the undeniable advantages too. Flexible working models often lead to reduced overheads, with less need for physical office space and utilities. More crucially, they find a workforce that's happier, more engaged, and often more productive. The ability to offer such flexibility also positions a company as forward-thinking and adaptable, essential traits when seeking to attract new staff.
Embracing flexible working is not just about following a trend; it's about understanding and catering to the evolving needs of employees, solidifying its place as a top-tier benefit for 2024.
With environmental concerns increasingly shaping personal and professional choices, an Electric Car Salary Sacrifice Scheme stands out as not only innovative, but also immensely valuable. Offered by a number of reputable providers, this scheme allows staff and employers to feel good about their choices. It saves employees £100s every month and gives businesses the opportunity to reduce their emissions without spending a single penny.
For starters, the financial incentives are hard to overlook. By sacrificing a portion of their pre-tax salary, employees can access electric cars at a fraction of the traditional cost. With potential savings of up to 60% on a monthly car lease, and a super-low benefit in kind tax rate of just 2%, this scheme is one of the rare cases where you really do get ‘more for less’.
Beyond the clear monetary advantages, there's the undeniable allure of driving an eco-friendly vehicle, projecting a conscious and contemporary image.
It’s not just about cost-saving, though the potential 60% reduction on car leases is compelling. Employees take pride in being part of the green revolution, driving vehicles that not only save them money but also reduce their carbon footprint.
Not all salary sacrifice schemes are created equal, so if you do choose to implement one at your business, it’s important to pick the right provider.
We’ve written an entire article comparing the top UK providers, as there’s lots of key things to consider:
See if your company is eligible to implement the loveelectric salary sacrifice scheme here
.jpg)
Across the UK, businesses that have incorporated the Electric Car Salary Sacrifice Scheme rave about its success. Not only have they seen an uptick in employee satisfaction, but their company’s image as an environmentally-conscious employer has skyrocketed.
In 2023, with the dual pressures of financial sensibility and environmental responsibility, the Electric Car Salary Sacrifice Scheme emerged not just as a benefit, but a necessity for forward-thinking companies.
You can read about our happy clients either on our Trustpilot or Driver Testimonials.
In recent years, health and wellbeing have transcended from buzzwords to pivotal employee expectations. More than just a benefit, they've become a testament to how deeply a company values its workforce. In the wake of global health challenges, this focus has magnified. Companies that prioritise employee wellbeing are witnessing not just happier staff, but a range of tangible business advantages.
Investing in health and wellbeing directly translates to reduced absenteeism and increased productivity. Healthy employees are less prone to long-term illnesses, ensuring a consistent workforce. Furthermore, mental health support can lead to better team cohesion and reduced staff turnover, saving costs on recruitment and training.
Mental health initiatives can also boost a company's image, positioning it as socially responsible and attuned to contemporary issues, thus enhancing brand reputation and trust.
Begin with surveys to understand specifically what your employees need. Prioritise initiatives based on feasibility and impact. When introducing mental health support, ensure privacy and sensitivity. Partner with established health providers and platforms for seamless integration and optimal results.
For the modern workforce, addressing health & wellbeing isn't just a perk - it's a statement of care and business prudence. Companies that weave these into their fabric are not only enhancing their employees' lives but also fortifying their business against future challenges.
In a world of diverse perks and non-traditional rewards, there's something undeniably impactful about direct financial incentives. They serve as a straightforward acknowledgment of an employee's worth, delivering immediate gratification. But beyond boosting employee morale, these incentives offer a slew of advantages that make them a strategic choice for employers, too.
.jpg)
For these incentives to be effective, transparency is key. Clearly communicate the criteria and potential rewards, ensuring there are no ambiguities. Periodic reviews and feedback sessions can also be beneficial, keeping the process dynamic and aligned with both company objectives and employee expectations.
For 2024, amidst the myriad of employee benefits on offer, direct financial incentives are one of the most potent tools in an employer's arsenal. They're tangible, directly impactful, and when structured right, create a win-win situation for both the employer and the employee.
Employee benefits centred around childcare and family support are the most emotionally impactful. They don’t just address an employee's practical needs. By acknowledging the challenges of juggling work with family responsibilities, employers send a powerful message: "We see you. We value you. We're here to support the whole you, not just the professional."
Such benefits resonate on an emotional level. They acknowledge the dual roles many employees play and underline a company's commitment to supporting them in both. The relief, gratitude, and loyalty these initiatives foster are immeasurable.
Rolling out these benefits requires a touch of sensitivity. Employers can consider hosting focus groups to understand specific needs, ensuring the initiatives introduced are genuinely helpful. Furthermore, making use of internal communication channels to celebrate new parents or share family-centric news can foster a warm, inclusive atmosphere.
As the line between work and home continues to blur, benefits that bridge the two realms rise in importance. Childcare and family support don't just make business sense – they strike a chord with employees that’s difficult to replicate in any other business setting.
Amidst a dynamic workforce landscape, the best employee benefits echo a profound understanding of what truly matters to employees. Whether it be the practical allure of financial incentives, heartwarming support of family-centric benefits, or the visionary promise of an Electric Car Salary Sacrifice Scheme, employers today have the tools to genuinely reward and uplift their teams.
By embracing these innovative, thoughtful, and impactful benefits, companies don't just enhance their appeal in competitive job markets; they foster a nurturing environment, boost employee morale, and build lasting bonds of loyalty. As workplaces progress, it's not just about how businesses evolve, but how they make their employees feel valued and heard. In the realm of employee benefits, it's evident: the future is both generous and bright.
.jpg)
Hear that? It's the gentle hum of electric vehicles (EVs) gliding through UK streets. As more and more people are drawn to the eco-friendly allure of EVs, the twisting road of financing options can get a tad bewildering. But, don’t stress! We’re shining a light on the path to make your journey to EV ownership a breeze.
Considering making the switch to an electric vehicle? It's a fantastic choice, both for the environment and your driving experience. But when it comes to financing that future ride, the terrain can get a bit uneven. The automotive industry is ever-evolving, presenting an array of financing avenues, each with its own set of benefits.
Perhaps you're contemplating the streamlined process of traditional leasing or weighing up the versatility of PCP (Personal Contract Purchase). Then there's the straightforward proposition of Hire Purchase and the tax efficiencies of Salary Sacrifice. With such a diverse set of options, it's understandable if the path to financing your EV feels a touch complicated.
Emerging from the diverse landscape of EV financing, we encounter several signposts that guide potential EV owners to their destination. Here's a straightforward look at these financing options:
TL;DR: You pay a set monthly fee and enjoy the ride, but the car remains the leasing company’s property.
Leasing a car is akin to a prolonged rental arrangement. Unlike purchasing, you never own the vehicle, and once your contract concludes, buying the car isn't on the table. When it comes to terms like Personal Contract Hire (PCH), it works like an extended vehicle rental. You commit to a fixed monthly fee for the lease duration, and once it's up, the car goes back to the finance provider without an option to buy.
TL;DR: This involves an initial deposit, regular monthly payments, and, if you choose, a final balloon payment to secure ownership at the end.
In a Personal Contract Purchase (PCP), you start by paying a deposit, followed by monthly instalments over a typical period of 2-4 years. At the end of this term, you have three options: trade the car in for a new one, purchase it outright with a balloon payment (at which point you become the owner), or keep driving it. If you decide not to buy the car, you might face mileage restrictions, similar to many leasing deals. Going over these limits incurs fees, a crucial consideration if you plan on returning the car. However, if you're buying it post-contract, the overage won't affect the balloon payment.
TL;DR: It's simple. Pay in instalments and, once the final payment clears, the car is all yours.
With a Hire Purchase Contract (HP), much like the PCP, you kick off with an initial deposit followed by monthly payments, typically spanning 3-4 years. The essence of HP is in its name – you're essentially 'hiring' the car with an intent to purchase it. Hence, mileage restrictions aren't a concern, as you're working towards ownership from the get-go. However, it's crucial to note that maintenance isn't typically included. This means that upkeep, along with any damage repair costs, will fall on your shoulders. It offers a straightforward path to full ownership without the end-of-term decisions that come with other financing methods.
TL;DR: An innovative approach where your car payment is conveniently deducted from your pre-tax salary, leading to considerable savings.
Read on to learn more about EV salary sacrifice:
Navigating the world of EV financing can be complex, but there's a solution that most find the most financially sensible to get behind the wheel: EV salary sacrifice. In the UK, salary sacrifice offers exceptionally favourable monthly payments. With an ultra-low Benefit-in-Kind (BiK) rate of just 2% (as of 2023/24) for electric cars, the savings available are substantial. When you combine this with reductions in income tax and national insurance contributions, electric car drivers with a salary sacrifice deal can get savings of up to 60% on a new car.
At loveelectric, we work directly with companies across the UK to bring EV salary sacrifice to employees. We're on a mission to make electric cars accessible and affordable to all, guiding you through this electrifying landscape and ensuring you reap the financial benefits while driving greener.
Eager to confidently navigate the electrifying world of EV financing? Look no further!
Join us on August 15th, 12-1pm, for an illuminating deep dive into Decoding EV Lease Finance.
From the twists and turns of PCP to the secrets lurking in traditional leasing, our Resident EV Expert, Jordan, will light up the path for you. Which financing option suits you is an individual decision, so let’s help you get all the information you need to drive electric in style.
Register for free!
If you can't attend live, don't sweat it. By registering, you'll automatically receive the event recording in your inbox so you won't miss out on any essential insights.
Dive in, get enlightened, and drive forward with knowledge.
.jpg)
Here at loveelectric, we're passionate about driving towards a greener future. As we enter an era of increased environmental consciousness, companies worldwide seek innovative ways to provide eco-friendly and sustainable employee benefits. And (possibly unsurprisingly), we believe that one of the most exciting solutions is to offer electric cars as a perk, enabling employees to make more environmentally friendly choices – and reduce the company’s carbon footprint.
In this article, we'll delve into the world of electric cars and how they can become affordable and accessible through EV salary sacrifice schemes. These schemes empower employees to embrace sustainability, reduce their carbon footprint, and support their company's journey to net zero.
Ready to explore the possibility of EV salary sacrifice? Click below to find out if your company is eligible.
Salary sacrifice schemes have gained popularity as a win-win solution for companies and employees. These schemes allow employees to exchange a portion of their pre-tax salary for non-cash benefits, leading to valuable savings. You may be familiar with other salary sacrifice options like pension contributions, childcare vouchers, or even cycle-to-work schemes.
An EV salary sacrifice scheme operates on the same principle. Rather than purchasing a car outright or struggling with expensive personal loans, employees can lease an electric car through a salary sacrifice arrangement with their employer. The lease cost is deducted from their pre-tax salary, resulting in reduced Income Tax and National Insurance contributions. The ultimate outcome? A lower taxable income and increased take-home pay for the employee.
The potential tax savings are enormous. With a tiny Benefit in Kind tax rate of just 2% on electric company cars, drivers can save between 30% and 60% on a brand-new electric vehicle.
EV salary sacrifice schemes offer a multitude of benefits for both employers and employees. For employers, it's an opportunity to provide an attractive and competitive perk without incurring extra costs. Simultaneously, they can significantly reduce their Scope 3 carbon emissions, making a tangible impact on their sustainability strategy. Additionally, offering electric cars at a massively discounted rate can boost employee satisfaction and retention, creating a positive work environment and a desirable place to work.
But what's in it for employees? EV salary sacrifice makes it possible for them to access a new electric car at a lower cost than purchasing one privately. By reducing their taxable income, employees decrease their tax liability, reducing their tax deductions. This affordability factor makes electric vehicles more accessible and opens up exciting possibilities for employees who may have never considered them before.
Implementing an electric car salary sacrifice scheme might sound daunting, but fear not! It's a simple yet transformative process that can demonstrate your company's commitment to sustainability and attract top talent while reducing your carbon footprint.
Electric cars are gaining popularity for good reason: they offer lower running costs, reduced emissions and cutting-edge technology. By introducing an electric car salary sacrifice scheme, your company can help employees transition to electric vehicles and contribute to a greener future.
Setting up an EV salary sacrifice scheme is easier than you think. It starts with ensuring you have the necessary agreements and contracts in place, such as the lease agreement, salary sacrifice agreement, and any relevant documentation.
To ensure a seamless experience, it's crucial to set up the scheme correctly from the beginning. Seeking professional advice to meet legal and financial requirements or partnering with an EV salary sacrifice provider – like loveelectric – to handle the administration can streamline the process and provide complete peace of mind.
Promotion is key to the success of your electric car salary sacrifice scheme. You want your employees to understand the benefits clearly and feel excited about participating. Communication is key, so ensure you explain how the perk works and provide supporting materials or guidance on using electric cars and charging infrastructure.
Consider going the extra mile by offering incentives to encourage employees to embrace the scheme fully. How about free charging at work or additional benefits like free fleet car insurance? These little extras can go a long way in motivating employees to make the switch to electric vehicles and actively contribute to a greener future.
Remember, a reliable EV salary sacrifice provider should be by your side every step of the way, ensuring you receive ongoing support and guidance in promoting the scheme effectively. Together, you can empower your employees to make environmentally friendly choices and pave the way for a brighter, greener future.
–
Electric cars are the epitome of a sustainable and efficient mode of transportation, leading to reduced emissions, cost savings, and an enhanced driving experience. By offering electric cars through salary sacrifice schemes, your company can empower employees to embrace sustainability and shrink their carbon footprints. It's a mutually beneficial arrangement: employees gain access to affordable electric cars, while employers demonstrate their commitment to sustainability and attract top talent. Electric cars are the future: EV salary sacrifice schemes are an excellent way to make them accessible and affordable for all.
So, what are you waiting for? Let's drive toward a greener future together.
.jpg)
The electric revolution is here. No longer an oddity on UK roads, electric vehicles (EVs) are becoming increasingly popular in the UK, with families and companies adopting more and more electric cars into their lives.
In fact, with over 265,000 EVs joining our roads in 2022 alone – representing a 40% year-on-year increase – the exponential increase in electrified personal transport is unlikely to slow any time soon.
But with more electric cars comes the need for more accessible charging solutions. In addition, as more people switch to EVs – and companies utilise EV salary sacrifice schemes – companies must consider how to accommodate their employees' charging needs.
In this blog, we'll explore the benefits of providing workplace charging for employees with electric cars and how it can work alongside an EV salary sacrifice scheme.
Want to learn more about how an EV salary sacrifice employee benefit could support your CSR and ESG goals – and save you up to 60% on a new electric car? Click here to get started.
We’re a little obsessed with great at-home charging options. We’ve written at length in the past about the financial benefits of installing a smart home charger and the positive impact on the environment of choosing an efficient electricity provider and tariff.
But the long and short of it is that many people don’t have access to at-home charging, with 33% of car owners across the UK – and 60% in cities – not having access to off-street parking, limiting the ability to access safe and secure charging. And for many, this is enough to hold them back from ditching fossil fuels and going electric.
This is where workplace charging comes in. Installing chargers at your workplace can allow employees to recharge their cars without worrying about finding a free public charger outside of work hours. For this reason, many companies are recognising the benefits of workplace charging – especially those with EV salary sacrifice schemes – and are installing charging points in their car parks to provide employees with a convenient and accessible way to charge their EVs while at work.
One of the main benefits of workplace charging is reduced range anxiety. With workplace charging available, employees can drive to and from work with a fully charged battery, knowing they can charge their EV during the day if needed. This eliminates the need to worry about running out of charge on the way home or making additional stops to find a charging point.
Another benefit is increased convenience. Instead of finding a public charging point and waiting for their car to charge, employees can charge their EVs while they work. This saves time and reduces the hassle of having to manage charging their electric car outside of work hours.
Providing workplace charging can also help employees save money on home charging. By charging their EVs at work, employees can reduce the energy they need at home, potentially leading to lower electricity bills. Doubled up with the 30-60% saving they’ll make on their EV lease with loveelectric, your employees will rave to their friends and family about the perks of working at your company.
Providing workplace charging can also benefit employers. Namely, it can help attract and retain talent. Companies that offer an EV salary sacrifice scheme and workplace charging demonstrate a commitment to sustainability and the environment – an attractive quality for job seekers who prioritise these values.
Undoubtedly, companies that bolster their environmental and social responsibility attract the most talented employees. The Purpose Pulse Report found that 71% of Millennials and Gen Z’s see climate change as the biggest challenge facing their generation – and that concern directly impacts where they choose to work. In addition, Deloitte’s 2021 Global Millenials and Gen Z Survey revealed that 44% of Millenials and 49% of Gen Z’s have made choices about what work they do, and whom they do that work for, based on their values.
This commitment to the environment extends beyond the workforce: offering workplace charging can also enhance a company's corporate social responsibility (CSR) and ESG promises. By reducing the environmental impact of employee travel, companies can demonstrate their commitment to sustainability and reduce their carbon footprint.
Finally, providing workplace charging can boost employee productivity. With workplace charging available, employees can arrive at work with a fully charged battery, so they don't have to worry about finding a charging point during the day. This can help reduce the time employees spend managing their EV charging, allowing them to focus on their work.
If you're considering offering workplace charging to your employees, it can also work alongside an EV salary sacrifice scheme. The EV salary sacrifice scheme allows employees to sacrifice part of their salary to lease an EV, and as a result, benefit from a reduced taxable income. By offering workplace charging alongside the EV salary sacrifice scheme, companies can provide employees with a more comprehensive EV package, which can be attractive to prospective employees.
If you're interested in offering workplace charging to your employees, there are a range of UK-derived resources available to help you. The Office for Low Emission Vehicles (OLEV) Workplace Charging Scheme provides guidance for applicants and installers, while organisations such as the Energy Saving Trust and Zap-Map provide a range of information and support on EV charging solutions.
Ready to supercharge your employee benefits package by offering EV salary sacrifice? Check if your company is eligible today.
loveelectric.cars, a leading electric car salary sacrifice provider, today announced the launch of Re-loveelectric, their nearly-new EV salary sacrifice marketplace.
Founded to make EVs more accessible and affordable, Steve Tigar, loveelectric.cars’ co-founder and CEO, says that the used electric car marketplace will ensure more people across the UK can afford to switch to electric.
“There is a major issue in the market when we consider the affordability of electric cars,” Steve commented. “For many, the upfront cost of buying or leasing a new EV can prevent them from getting their dream vehicle. But with salary sacrifice, people across the UK can drive their dream car at a fraction of the price.”
Through salary sacrifice, loveelectric.cars’ drivers take advantage of the low Benefit in Kind rate and reduced National Insurance Contribution and Insurance Tax – resulting in savings from 30-60% off a new EV. So it’s no wonder, Tigar says, that the British Vehicle Rental and Leasing Association reports that salary sacrifice volumes are up 33% year on year, with employers attracted to a benefit they can extend to all staff, especially at a time when salaries are under pressure.
“With Re-loveelectric, we’ve amplified these savings. Now, drivers can lease used electric cars with the same salary sacrifice tax benefits.”
This announcement comes at a critical time as the used car market is on the rise. According to a report from the Society of Motor Manufacturers and Traders (SMMT), the EV used car market grew by 37.5% in 2022, representing record demand. This is in stark comparison to the overall used car market, which fell -8.5% in 2022.
However, with EVs representing an estimated 2.2% of the total car market, Tigar notes that there is room for substantial growth in the used EV market.
“With new petrol and diesel car sales banned by 2030, the pressure is on for both companies and drivers to switch to electric,” Tigar noted. “Ensuring that both new and used EVs are available – and affordable – is critical to reaching this ambitious goal.
“As the used electric car market continues to grow, we’ll see EVs become more affordable and widely dispersed. Through Re-loveelectric, people across the country can now access used electric cars – and reap the financial rewards of salary sacrifice.”
.jpg)
When choosing a new car, your options can seem limited. If you’re buying, the upfront cost can come as a shock. But a personal lease can be just as expensive, giving your monthly income a hit that can seem unsustainable.
That’s where EV salary sacrifice comes in to save the day. With our electric car benefit saving our customers between 40-60% on their monthly lease, salary sacrifice makes getting an EV accessible and affordable for people across the UK.
With an astonishingly low Benefit in Kind (BiK) rate and massive savings to make on tax, it’s no wonder that companies and employees across the UK are turning to salary sacrifice to get behind the wheel of their dream EV.
But why should companies consider an EV salary sacrifice scheme? What benefits does it bring to their company, and what does the future of salary sacrifice look like?
In this article, we cover:
Ready to help your employees save up to 60% on their new EV – while meeting your company’s CSR and ESG goals? Find out if your company is eligible here.
It couldn’t be more simple. Salary sacrifice is, without a doubt, the most affordable and accessible way to finally get your dream electric car.
As the name suggests, salary sacrifice electric car benefits are available through an employer to their employees. In exchange for a small portion of your gross monthly salary, you receive a benefit in kind at a reduced cost. It’s not a new concept, and you may have encountered other examples before, such as cycle-to-work, childcare or pension schemes.
Learn more about salary sacrifice
While it may seem daunting to ‘sacrifice’ your salary in exchange for a benefit, the savings you receive far outweigh the modest reduction in your monthly salary.
Why? An ultra-low ‘Benefit in Kind’ (BiK) rate and savings on National Insurance Contributions and Income Tax.
Every benefit an employee receives from their employer instead of monetary compensation is considered a Benefit in Kind (BiK). As this benefit – whether a product or service – is compensation for the employee’s services, the employee must pay HMRC an associated BiK rate, a form of tax.
And the beauty of EV salary sacrifice is its astonishingly-low BiK rate. In August 2022, the UK Government confirmed that the electric car BiK rate would remain at just 2% until 2025 before rising 1% year on year until 2028.
Alongside this low BiK rate, an EV salary sacrifice benefit helps employees get behind the wheel while saving big on tax.
As the monthly lease payment is taken from your gross salary – that is, your salary before tax – loveelectric drivers pay less Income Tax and reduce their National Insurance Contributions.
These savings are dependent on your income tax bracket. Find out how much you could save.
As the UK accelerates towards its net-zero goals, the policy landscape around electric cars will continue to transform. Many of these political changes will encourage EV adoption and impact electric car salary sacrifice schemes.
We have identified two policy changes that may substantially impact the attractiveness and need for EV salary sacrifice benefits in the UK.
As the pressure on reducing carbon mounts on companies and countries, so too does the need to report on this carbon impact. Without measuring its impact, it’s near impossible for a company to know how to reduce that impact. Companies with over 500 employees must currently report their Scope 1 and 2 emissions (emissions that the company controls).
However, the International Sustainability Standards Board (ISSB) will now require mandatory Scope 3 emissions (created as a consequence of the company's activities) disclosure from private companies. The UK government may make policy changes to reflect this higher standard. Notably, business travel and employee commuting fall under Scope 3 emissions reporting. Changing your company car fleet from fossil fuels to EV can substantially impact reducing these emissions – and an EV salary sacrifice scheme is the most affordable and efficient way to do so.
Other policy changes include those to EV charging at the workplace. The WCS is a government scheme that provides financial support to businesses that install electric vehicle charge points for their employees.
The UK government intends to extend and expand the WCS, with a keen interest in installing rapid charge points. With increased – and more powerful – charging infrastructure available at workplaces, more companies will look for affordable ways to electrify their car fleets – making EV salary sacrifice schemes more attractive to businesses nationwide.
We’re tech-obsessed here at loveelectric. Whether we’re improving our bespoke app to support better EV searches and ordering (you can have a sneak peek here!) or fantasising about upcoming EV tech, there’s always something new to drool over.
But what gets us really excited about the rapid improvements to electric car tech is the impact on their efficiency and affordability. So whether you’re looking for the most efficient car for your pound (and for the environment), we’ve got the EV for you: check out our lineup here. And if you’ve been around for a while, then you know that everything we do is to ensure electric cars are affordable and accessible to everyone across the UK.
Tech improvements go beyond the hardware and software in electric cars. EV public charging infrastructure continues to improve year on year, helping connect electric car drivers with the country and dispel residual ‘range anxiety’.
Implementing an EV salary sacrifice benefit in your workplace is the best way to take advantage of these tech developments. With lease periods lasting up to four years, you and your employees can take advantage of new tech when it becomes available – at up to 60% off the cost of a personal lease.
Start browsing our high-tech EVs
With the ultra-low BiK rate of just 2% in place until 2025 and rising just 1% each year until 2028, salary sacrifice is the best way to get behind the electric wheel. As the policy landscape shifts in response to our changing climate and electric car technology improves exponentially, implementing an electric car scheme is the best way to join the electric revolution.
Ready to get started? Let us show you why loveelectric is the best EV salary sacrifice benefit for your company.
Change: the only constant.
Whether or not we’re party to it, the world is always changing around us.
EVs are no different; the electric car market is in a constant state of flux. A relatively new technology, electric cars are at the pinnacle of innovation – and they’re changing faster than we could ever imagine.
In this article, we go over some of the most significant upcoming changes to EV technology. Whether we’re discussing revolutionary batteries or the latest in smart home technology, it’s clear: getting your next electric car with salary sacrifice will ensure you can enjoy the latest in new technological advances without sacrificing your wallet.
Ready to get started? Find your high-tech EV here.
Not only is new tech incredibly exciting, but it also signifies practical improvements to the driving experience. The car market is obsessed with safety, and many of the upgrades below will ensure the safety of drivers, passengers and pedestrians alike. And when talking about EVs, we can’t ignore the sustainability improvements: more efficient batteries mean less reliance on carbon-heavy electricity sources, and autonomous driving may improve traffic flow and congestion.
While this innovation is exciting, it also leads to uncertainty around the price of new EVs and the second-hand e-car market. The recent Tesla price drop was a perfect example of this dichotomy: how technological improvements can create uncertainty surrounding residual values (what your car is worth at the lease's end) while making electric vehicles more accessible and affordable.
That’s why we love EV salary sacrifice leasing. For a slight reduction in their monthly gross salary, loveelectric drivers can enjoy the latest in car technology, get their new electric car at the lowest cost possible, and enjoy protection from unstable residual values.
Find out how much you could save on your new EV with salary sacrifice
It’s official: lithium-ion batteries are old news.
Well, maybe not just yet. But the next wave of batteries is about to crash down on the industry, revolutionising how we charge EVs and the role our car will play in our household.
Solid-state batteries are expected to replace the current lithium-ion batteries used in EVs in the coming years. Unlike lithium-ion batteries that require layers of heavy metals within flammable liquid electrolytes to store power, solid-state batteries are just that: a solid electrolyte. This density and lack of flammable electrolytes mean solid-state batteries are crucial to unlocking the safety and energy density required for an electrified society.
Not only are solid-state batteries safer, more energy-dense, and quicker to charge than lithium-ion batteries, but they are also expected to be less expensive to produce than traditional batteries. In addition, their longer lifespan could increase the resale value of EVs and create more certainty around residual costs.
Of course, the sustainability impact will be huge. It’s no secret that battery production is an incredibly carbon-heavy process. However, with the rollout of solid-state batteries, their longer lifespan and higher energy density mean that this carbon cost can be spread over many more electric, tailpipe emissions-free miles.
And this future isn’t far away: several companies, including Toyota and QuantumScape, are working on solid-state EV batteries.
Closer to home, the UK government is heavily promoting the development of battery tech. Pledging £211m in 2022 to the Faraday Institute, proponents of research and development of next-gen batteries, the UK government has put its mouth where its money is, supporting the nation to become the leader in the battery revolution. Recipients of this funding, including Ilika, are working on solid-state battery research and development.
Imagine driving into the garage after a long day’s work, hanging up the keys and never having to remember to charge or fill up your car again. With wireless charging, you’ll never have to deal with pesky charging cables or fossil-fuel pumps again.
It may seem far-off, but wireless charging is already widespread. Instead of a charger on your wall, a wireless charging pad is installed on the ground. Simply drive in, park your car over the pad, and the battery charges without fuss.
Wireless charging technology is an essential plug-in for expanding EV infrastructure nationwide. Implementing this new tech will enable more user-friendly charging, supporting more inclusive EV access and ensuring the UK’s seamless transition to electric.
This impact is most evident in expanding EV infrastructure in urban areas. Local councils in London, for example, have been exploring the use of wireless charging technology to help reduce air pollution. Eight hundred and fifty of London’s bus fleet are electric, and most can now be charged overnight using wireless charging pads. With this new charging method being faster and more convenient, the opportunity to transition the entire fleet to electric is in view, ensuring more sustainable public transport.
The battery is the heart, soul and powerhouse of an EV. But these massive leaps in battery tech mean so much more for EVs than just greater range and faster charge times: electric cars are the key to a more stable and supported electricity grid.
Vehicle-to-grid (V2G) or Vehicle-to-anything (V2X) technology could be the most exciting tech of the decade. As part of the ‘Internet of Things’ (IoT), V2G tech integrates your electric car and your home. Essentially, your EV acts as a battery for your home, storing energy from off-peak rates to use during peak energy usage.
The benefits are immediately apparent. Because you pull electricity from the grid during off-peak rates, you save on your monthly electricity bill. Additionally, because you have a store of cheap electricity in your car battery, you can sell any extra charge back to the grid, earning you money and stabilising the grid during peak usage. Coupled with a solar system and your home is an energy-generating machine.
Looking for the most cost-efficient way to commute? A beautiful smart charger and solar panels are the dream team. Find out how our friends at Hypervolt can make it happen.
In 2018, the UK government invested £30 million in V2G research. This funding was awarded to 21 projects to explore and trial the technology and commercial opportunities.
The opportunities with this tech are seemingly endless and signify a future with consistent and affordable electricity rates. And for those leasing electric cars through salary sacrifice, V2G technology could support even more affordable leases by creating certainty around residual costs. With EV owners able to earn money by selling energy back to the grid, second-hand electric cars could become more popular and increase the resale value of electric cars.
Indeed, these exciting technologies could increase resale values, stabilising electric car lease prices. As EV batteries improve in efficiency and range, become more convenient to charge, and power our homes and lives, this technology will flow into the second-hand market and ensure residual value certainty. Less waste, greater confidence around resale prices, more affordable EV leases: a future we can get behind.
Want to benefit from EV cutting-edge tech without worrying about your car’s resale value? With electric car salary sacrifice, you can do just that – and save up to 60% on your lease in the process.
Get started here.
When researching various electric vehicle salary sacrifice benefits, understanding which scheme might be the right fit for you and your company can often be challenging. Here are some reasons why:
The main thing to keep in mind when comparing electric car salary sacrifice schemes is that you’re often comparing apples to oranges.
Many schemes will include different services and have different eligibility criteria and policies, which can make it harder to compare them directly.
What you really need to look for is quality of service and product and weigh that up with the monthly service cost. It’s also incredibly important to read through the fine print, so you know what you’re getting.
Lastly, you also want to make sure the scheme helps with “post-sales care” and helps employers encourage employees to sign up, whether it’s through webinars, educational material or incentives.
In this article, we’ll compare the top electric car schemes to help you decide and understand which solution might be the right fit for you.
We’ll discuss:
Note: Looking to get started with a salary sacrifice scheme that has no hidden cost and offers the best early termination policies?
.png)
Due to the increasing demand for electric vehicles, there are more electric vehicle salary sacrifice schemes that are set up every year.
Although many are legitimate and offer a great service, some are simply looking for a quick commission fee and will have artificially high monthly payments to cover costs.
When selecting an electric vehicle salary sacrifice provider, there are a few things you want to look out for:
Leasing a car means entering a long-term relationship with a provider, which means it’s important that you feel comfortable with the provider and trust that they will follow through on what they say.
For this reason, you want to ensure the team communicates clearly and quickly. Are their answers a little wishy-washy and not specific? Then it might be a sign that they don’t have high standards or simply don’t fully understand the complexity of an EV salary sacrifice scheme.
Once you set up the salary sacrifice scheme, employees will have many questions, so it’s important that someone on their team is responsive and can answer all their questions.
As we mentioned above, each salary sacrifice monthly lease will be different and include different services. Make sure to understand what you’re paying for and what the terms are.
For example, make sure to ask what the providers’ partners are. Are they self-insuring, or do they have a legitimate third-party and comprehensive insurance provider? If they are self-insuring for specific claims, could that be a risk if they are hit with too many claims?
Make sure you know what is included in the monthly lease and exactly what happens in case of early termination, including:
You also want to know what happens:
Getting the scheme set up is just half of the work: the other half is encouraging employees to use the portal and order a car. If you’re an employer who’s set this up for talent acquisition and retention, then you want to ensure employees make the most of it.
Yet many salary sacrifice schemes will mainly focus on signing up a company rather than taking care of what happens afterwards. Ideally, you want the confidence that employees will take advantage of the benefit – and that’s something that the provider should help with.
You also want to ensure employees have an outstanding customer experience when ordering a car. Ideally, they aren’t spending hours trying to order a car, and the experience is relatively intuitive.
Some questions you can ask are:
Most importantly, you want to ensure the company knows what they’re talking about and can offer guidance. Ideally, they should have a document that clarifies the responsibilities of each party, so you are not liable for employee errors.
We hope this comparison is practical and will help you navigate the field of electric car vehicle salary sacrifice schemes. If you have any questions on the scheme and how we operate, reach out to us and we’ll make sure to respond to any your queries.
Whilst we've attempted to summarise the most salient points for each of the main salary sacrifice providers, we always encourage any business to engage directly and conduct their own due diligence.
Before getting into the specifics of each scheme, note that most of the leading EV salary sacrifice car schemes include the following:
%20(1).png)
loveelectric was founded when our CEO, Steve, wanted to switch to an electric car and discovered that salary sacrifice was by far the cheapest way to do this. However, he noticed some gaps in the salary sacrifice schemes on offer at the time, so decided to set one up himself to address the market gaps and help democratise electric vehicle access.
You can read more about our story here: Electric Cars are Expensive. Here’s How We’re Democratising Electric Vehicle Access At Loveelectric.
Here are some of the features and benefits of setting up a salary sacrifice scheme with loveelectric:
Whereas other electric car schemes bolt on salary sacrifice as an additional feature to their core service offering, we are specialists in the EV salary sacrifice benefit.
That means we can set you up with the scheme from start to finish. We’ll write up the contracts, set you up with the employee and company portals, and help you manage payroll when it’s time to pay salaries.
It also means we know how to help employers encourage employees to take advantage of the benefit and order cars. Setting up the perk is just one part of the process – encouraging employees to use the benefit is also a big part where our expertise comes into play.
Many salary sacrifice schemes are operated by leasing companies who own the vehicles, which often means that the monthly lease cost can be higher. It’s a little bit like going directly to a retail bank for a mortgage rather than using a specialist broker that can access the best rates from a range of lenders.
We partner with major leasing companies, which means we have direct access to market-leading rentals. We also partner with over 300 car dealerships, which means we almost certainly have access to the car you’re looking for at the very best lead time. Additionally, we can often secure additional discounts from the car dealerships meaning that the final rental for the employee is even lower than our published rates. It also means that our monthly lease prices are almost always the best on the market.
Although a core part of what we do is sourcing the vehicles and arranging the finance agreements behind the scenes, we also help employers set up the scheme, educate employees and offer assistance throughout the entire engagement.
With many car schemes, you might get initially excited with the affordably priced monthly leases viewed on the main page. But once you get set up, almost all the monthly leases will be more expensive and are likely to be a lot higher than a personal lease.
Different suppliers have different revenue models. For example, Tusker and Octopus EV are leasing companies and set the rentals themselves. They are a lot smaller than traditional leasing companies, owning 10,000 vehicles compared to large ones that might have over 350,000 cars.
By being smaller, it’ll mean they can’t negotiate the strongest discounts with manufacturers, and in Octopus EV's case they aren't owned by a retail bank, so their cost of capital will be a lot higher. It simply means their rental prices cannot match the ones of large leasing companies. And as a leasing company, rather than finding the best rates, they will simply offer their own products.
loveelectric and other brokers make money by charging a commission on top of the rental. However, that means you’ll want to know how much that commission is.
At loveelectric, we simply charge a small commission against the P11D value of the car (you’ll never pay more than 1.5%) which is incorporated into the prices you see on our site.
We also charge a small 3% administration fee - typically around £20/month - to the employer (based on the employee's gross lease cost) for each lease taken out with us. This is just to cover the ongoing costs of managing the lease over the 24/36/48 month period.
This cost is simply deducted from the employer's national insurance savings generated by the scheme, so the loveelectric service is cost neutral for your company.
Another crucial difference between loveelectric and other brokers is how we manage our funders. While many brokers work with a large panel of funders, this can lead to a deluge of Master Hire Agreements (MHAs) and invoices. From experience, we know this creates an administrative headache for employers and employees. At loveelectric, we've intentionally streamlined our funding panel to include only those funders that offer us a competitive advantage. This ensures the optimal balance between value and convenience for everyone involved while eliminating unnecessary paperwork and complexity.
In addition, we’ll provide employers and employees with all the information they need to make a decision, including a webinar, a driver handbook and an online community. loveelectric is also a B Corp (pending).
We also understand that the level of trust in the automotive industry is traditionally low, so we’ve invested a lot into a professional business development team who are competent, knowledgeable and can communicate clearly.
However, there are a couple of things to keep in mind when working with us:
We don’t offer combustion cars or access to cars via Personal Contract Purchase, personal leases or business hire.
If this is quite important for your company, then a different supplier might be a better fit.
We work with two partners, Hypervolt and Egg, to offer incredible deals on market-leading smart home chargers. Click here to read more about smart charging and our offers exclusive to loveelectric customers.
Who is loveelectric good for? Companies of any size that want to offer employees an affordable car and care about a good car ordering and employee experience.
We understand that loveelectric might not be a good fit for everyone and that other salary sacrifice companies might be a better fit at times. Here are some features of other salary sacrifice schemes:
Some of the first questions employers ask when they reach out to us is: what happens if an employee leaves during the lease? Or if we enter a period of financial difficulty and need to make some employees redundant? Or if the worst happens; a vehicle is written off or stolen?
That’s where it’s important to have early termination protection in place.
All reputable EV salary sacrifice providers will offer Early Termination Protection - walk away if they don’t - however, policies can wildly differ in the level of protection they actually offer both the business and employee.
At loveelectric, we provide one of the best policies on the market.
But, our industry-leading protection is only used once we've explored every other option for the car on your behalf. This is our unique 4-step safety net, which means we only have to claim against the termination protection as a last resort.
At all times, if an employee resigns they can transfer the lease to another employee or take the lease with them to their new employer (if eligible) at no extra cost.
If the driver terminates the lease:
At all times, if an employee resigns they can transfer the lease to another employee - either within their company, or amongst the thousands of other employees across our entire company base. Alternatively, they can take the lease with them to their new employer (if eligible) at no extra cost.
If the employee resigns after 3 months into the lease (and doesn’t transfer the contract or take it with them to a new employer) they will only have to pay a one-off fee: just 1 x month of the gross lease payment.
For example, if their gross monthly lease is set at £500 per month for a 24-month term and they resign at month four, the termination fee would be £500. Keep in mind that this amount cannot be paid via salary sacrifice: the fee is the gross amount before tax. This creates positive friction in favour of employers and typically lowers attrition rates. The nominal fee encourages employees to opt-in to a length of contract that's suitable to them, leading to a significant decrease in the monthly premium for those who see the lease term through to completion.
If the employee resigns in under 3 months (and doesn’t transfer the contract or take it with them to a new employer), early termination protection cannot be applied and the employee would be liable for up to 50% of the rest of the lease. However, our deferment period is much shorter compared to other salary sacrifice suppliers, making this eventuality much less likely with loveelectric.
FAO Employers:
We are the only provider to offer full GAP protection if the vehicle is written off. GAP protection ensures that the employer isn't left with £1000s worth of shortfall between the retail value of the car, compared to the leasing company's valuation.
If the employer makes the employee redundant after 6 months, the employer will pay a one-off fee worth the gross amount of one month of the lease payment. This can then be recovered directly from the employee's next/final net salary. Because it is taken from source, the employee cannot default on this payment. We believe this is a benefit to the company, as a nominal termination fee introduces positive friction at the point of sale, ensuring employees do not simply opt for longer leases as they are often cheaper, whilst having the intention to leave the lease after 12/24 months without any further commitments. This reduces employee attrition and decreases the monthly lease cost for those who see their lease through to the end of the agreed term. It's a bit like an 'excess' on an insurance policy which reduces the monthly premium.
.png)
Read more about our early termination protection here: Early Termination Protection for Salary Sacrifice Car Scheme: How It Works And What You Need To Know
Tusker has provided salary sacrifice schemes to companies for over ten years and offers everything from fleet management to brand new electric cars and company cars.
Who’s Tusker good for? Enterprise companies with very large employee bases that want to offer combustion cars alongside electric vehicles.
Circumstances that Tusker’s Early Termination Protection doesn’t cover:
Circumstances that Tusker’s Early Termination Protection does cover with the deferment periods:
Octopus is best known as an electricity and gas provider, but in 2018 they branched out to electric vehicles and a salary sacrifice scheme.
Who is Octopus EV good for? Employers and employees who want everything bundled together.
Circumstances that Octopus’ Early Termination Protection doesn’t cover:
Circumstances that Octopus’ Early Termination Protection does cover with the deferment periods:
With salary sacrifice becoming such a popular employee benefit, it's entirely possible you are looking at an alternative provider that may have entered the market more recently.
When evaluating any of these alternative providers, we would recommend that you investigate the following when speaking to one of these alternative providers:
As we’ve demonstrated above, there are lots of salary sacrifice providers out there, but not all are created equal. But by following the guidance above and carrying out your own due diligence, you can make a fully informed decision about which salary sacrifice provider to go for.
We hope our comparison has given you enough information to feel confident in your decision-making process. There's lots to digest and pieces of marketing to wade through when choosing which provider to opt for, which is why we've attempted to collate all of the relevant information into one handy guide. Of course, please go and do your own due diligence, our only advice would be to really delve into the following points when speaking with other providers:
Good luck on your deliberations and we look forward to implementing our industry-leading salary sacrifice scheme with you soon.
love to join? Help your employees benefit from one of the best employee benefit schemes going without it costing you a penny. Drop us an email and we’ll be in touch within 24 hours.
love to halve the cost of your new electric car? You just need your employer to sign up first. Fill in your company details so we can get in touch - it won’t cost them a penny but it might earn you a few brownie points.
