Keeping staff happy and resolving disputes is part of the job description, right? But here’s one way to deliver an instant hit.
Electric car salary sacrifice.
That’s right, offer your staff the benefit of an electric car at an equivalent cost that’s far below what they would have to pay personally.
What’s not to like? It will certainly win you friends among your employees.
Like most salary sacrifice programmes, staff pay for the car’s monthly rental out of gross salary before tax and National Insurance is deducted.
All car insurance and car maintenance is included in the rental – so it’s absolutely no-hassle motoring for your staff.
It’s a benefit, of course, so there is benefit in kind tax to pay – but electric cars currently attract only 2% benefit in kind taxation. For a MINI Cooper Electric that’s as little as £10 per month.
The tax and NI advantages easily outweigh the benefit in kind tax, offering your employees – and potential staff – a really valuable benefit.
It’s far cheaper than your staff leasing the same car personally. Let us demonstrate the point:
Gross salary sacrifice: £804.71
Income tax saved: -£321.88
NIC saved: -£16.09
BiK tax: £35.44
Monthly net salary sacrifice: £502.17
Rental: £803.76
Maintenance: £21.52
Insurance: £50.00
Monthly cost: £875.28
*Based on a 3+33 profile, 5,000 miles per annum
See what we mean? Over the three year term, salary sacrifice could save your employee a whopping £13,432. Now that’s what we call a staff benefit.
The only question now is: when will you start offering your staff salary sacrifice?
Keeping staff happy and resolving disputes is part of the job description, right? But here’s one way to deliver an instant hit. Electric car salary sacrifice. That’s right, offer your staff the benefit of an electric car at an equivalent cost that’s far below what they would have to pay personally. What’s not to like? … Continued
Have you ever looked jealously at your work colleagues driving their company-provided car – and thought, ‘why not me’? But your job role doesn’t qualify you for a company car. So it’s back to public transport or funding a car out of your own post-tax salary. And we know how the cost of living crisis … Continued
Is it possible to salary sacrifice a hybrid car? It’s a question we’re often asked and the answer is, of course! It’s quite understandable why many drivers feel uncertain about switching to fully electric: nervousness about the charging infrastructure; worries about new technology; and uncertainty over the cost of electric vehicles (EVs). These are hurdles … Continued
Here at Fleet Alliance, we like to feature content that is informative to customers and clients particularly when considering the many funding options available when sourcing a new car. Today, we wanted to clarify the difference between PCP (Personal Contract Purchase) and PCH (Personal Contract Hire), as writers in the mainstream press are not only … Continued
Independent healthcare provider, Novus Health, has implemented an electric car salary sacrifice scheme for staff in conjunction with Glasgow-based fleet management and leasing expert, Fleet Alliance, to provide them with a wider array of employee benefits. Novus Health was set up in 2007 by a number of GP’s practices in the Wakefield and Five Towns … Continued
If you want to work in financial services then you should be considering Fleet Alliance. Easy to say, of course, but why should you choose Fleet Alliance? The answer is right here: our certification as one of the UK’s Best Workplaces in Financial Services & Insurance. We’re in the Small & Medium financial services category, … Continued
Fleet Alliance challenges some of the myths surrounding electric cars Salary sacrifice is the most popular way of funding vehicles at the moment. In the most recent analysis of the leasing sector by the British Vehicle Leasing & Rental Association (BVRLA), the volume of salary sacrifice grew by an incredible 63%. We can happily … Continued
It’s a good question: how much can you save on a car through salary sacrifice? The glib answer is: a lot. But that needs breaking down a bit. There are certainly significant savings that can be enjoyed through taking an electric car (EV) salary sacrifice vehicle rather than personally leasing the same car. Why should … Continued
The number of drivers stepping into shiny new fleet cars is growing each month. So far this year, fleet registrations have grown by more than 22% in the first six months of 2024, with overall new car sales hitting the million motors milestone. So that’s a lot of drivers in a lot of new cars, … Continued
Tesla is always in the news. You could say that with his grip on social media, Tesla’s founder, Elon Musk, is the news. But look beyond the space rocket, Musk’s astronomical salary, the Cybertruck, and plans for robotaxis, and you still have cars that kick-started the shift to EVs. First, there was the Tesla Roadster, then … Continued