Your complete guide to EV salary sacrifice procurement
Understanding EV Salary Sacrifice
Before diving into the procurement process, it's important to understand what you're actually offering your employees.
An electric car salary sacrifice scheme allows your employees to trade a small portion of their pre-tax salary for an EV – saving them 30-60% on their lease. With an ultra-low Benefit in Kind rate for EVs of just 2%, combined with lower Income Tax and reduced National Insurance contributions, your employees can cut costs - not corners. The best part? It's at zero cost to your company.
Why offer EV Salary Sacrifice?
Unlock EV Savings
By offering salary sacrifice, you're giving your employees access to affordable electric cars they might not otherwise be able to afford. The significant tax advantages make EVs genuinely accessible across your workforce.
Reach your sustainability goals
Electric vehicles are a tangible way to demonstrate your commitment to environmental responsibility. As your employees transition to EVs, your company's carbon footprint reduces alongside your team's.
Boost employee happiness
Quality benefits matter to employees. An EV salary sacrifice scheme is a high-value perk that employees genuinely appreciate and use, contributing to overall job satisfaction and wellbeing.
Employee benefits, simplified
Unlike some employee benefits that require complex administration, EV salary sacrifice can be streamlined and straightforward when you work with the right provider.
Be recognised for what you do
Offering progressive, environmentally conscious benefits helps position your company as a forward-thinking employer – valuable for both recruitment and retention.
What to look for in a provider
Your ideal EV salary sacrifice provider should be more than just a business contract; they should be a partner in your company's journey towards sustainability and employee happiness. Here's what to keep in mind when evaluating your options.
Low risk to your business
Choose a provider with transparent Early Termination Protection (ETP). Be wary of those inflating early lease rates to cover ETP overheads, as this can drastically deter employee participation. Hidden costs buried in lease rates defeat the purpose of offering an attractive benefit.
Value vs. cost
It's not just about finding the cheapest option. Go for cost-effective EV schemes enriched with superior customer care and effective risk management. A slightly higher upfront cost that includes comprehensive support can save you significant headaches down the line.
Access to all EVs on the market
Your employees have different needs, preferences, and budgets. Select a provider that ensures access to a wide variety of EVs for your whole team, including access to new and used EVs and frequent special offers. Limited choice means limited appeal.
Dedicated EV expertise
Salary sacrifice is a complex product. Make sure you choose a provider with a team of experts who live and breathe salary sacrifice every day. You need partners who can answer technical questions, guide employees through the process, and handle edge cases with confidence.
Industry experience
Select a provider with proven industry experience, ideally serving a large and diverse corporate customer base. Established providers have encountered and solved the problems you haven't even thought of yet.
Scalable solutions
Your business isn't static, so your employee benefits shouldn't be either. Opt for a provider offering an adaptable, cost-effective scheme that grows with your business. Whether you have 50 or 5,000 employees, the scheme should work efficiently.
Understanding and managing risk
At the heart of introducing an EV salary sacrifice scheme is balancing financial risk with employee rewards. This is where Early Returns Services becomes crucial.
The importance of a robust early returns process
A strong early returns process can make all the difference in managing risk and keeping employees happy. The best providers offer multiple routes for employees who need to end their lease early.
An effective two-step process
A comprehensive early returns process should offer maximum assurance from day one through two key elements:
Step 1: A Used EV marketplace
The first line of defence should be a used EV marketplace that empowers your employees with options:
- Transfer the lease to their new company if they change jobs
- Switch to a Personal Contract Hire
- Purchase the EV outright
- Reassign the lease to a colleague within their current company
- Transfer the lease to an employee of any other company within the provider's community
This flexibility means many early terminations can be resolved without any cost to your business or the employee.
Step 2: Comprehensive risk mitigation package
When marketplace options aren't viable, a comprehensive risk mitigation service acts as your safety net, providing complete peace of mind for your organisation.
What sets the best providers apart
When you've narrowed down your options, look for these distinguishing features that separate good providers from great ones.
Unrivalled early returns process
The best providers safeguard your company against unexpected charges with uncapped returns, giving you genuine peace of mind rather than fine-print limitations.
No nasty surprises
You should be assured of price transparency, no hidden costs, and genuine savings on electric vehicles. Everything should be clear from the outset.
A team you'll love working with
Look for a team that always goes the extra mile. From sourcing available stock to continuously innovating their offering, they should be there for you every step of the way.
Ready to compare providers?
Armed with this knowledge, you're ready to begin evaluating EV salary sacrifice providers in earnest. Use the criteria outlined in this guide to structure your conversations, compare offerings, and ultimately choose the partner that's right for your business.
Remember: your ideal provider should align with your company's vision for sustainability and employee happiness whilst offering transparent terms, comprehensive protection, and genuine expertise in EV salary sacrifice.
