Welcome to myev SALARY SACRIFICE

Salary sacrifice is an arrangement between the employer and the employee whereby the employee agrees to reduce their gross salary in exchange for a non-cash benefit. In this instance, the employee will agree to give-up (or sacrifice) part of their salary in return for a new, pure electric car.

To be clear, the employee sacrifices gross salary, that is salary before Income Tax and National Insurance Contributions (“NIC”). 

Whilst salary sacrifice has been available for cars for many years, the prevailing, exceptionally low Benefit-in-Kind (“BiK”) tax percentages for zero-emission vehicles mean it’s currently an exceptionally tax efficient proposition for both the employer and employee.

In the UK, employees agree to sacrifice a part of their pre-tax salary to lease an electric car. This reduces their taxable income, potentially resulting in income tax and National Insurance contributions savings. It enables individuals to enjoy the benefits of electric cars without the high upfront costs.

The benefits of electric car salary sacrifice in the UK include cost-effective access to electric cars, potential tax savings, lower fuel costs, reduced carbon emissions, and the opportunity to drive the latest electric car models.

Setting up a salary sacrifice scheme is a formal process which the employer must undertake with the e-car lease team.

As a specialist EV contract hire credit broker and fleet management business, our customers will use our services to lease an EV from one of our preferred finance companies, then enter into a formal agreement with the employee to confirm the sacrifice of the gross salary. All of this must be clearly documented between all parties, and for clarity the lease agreement will not be in the name of the employee.

In order to proceed with the myev lease salary sacrifice scheme, the employer must engage our credit brokering services to arrange EVs for their employees. In doing so, the employer provides an incredible benefit to its employees at almost no additional cost to the business. Indeed, the employer will benefit from monthly NIC savings which can be used to offset any costs associated with Early Termination.

And in assisting employees to utilise new and safe electric cars, the employer will enhance staff retention and promote sustainable transport solutions which is a fundamental part of the UK’s decarbonisation strategy and the 2035 plan towards zero-emission vehicles (cars and vans).