Electric cars are becoming a familiar sight across the UK, as more and more businesses are embracing this new, greener way of transport. And with schemes like salary sacrifice and relief at source, it’s become easier than ever to take a step into the future.
Rising living costs mean that both employers and employees are likely looking for options that reduce their expenses, while still enjoying comfort and practicality. Many drivers also want to reduce their everyday running costs, since petrol prices continue to fluctuate and older cars often need more maintenance.
Stay until the end of our article to see why these schemes appeal to so many businesses.
Lower Initial Costs
For many business owners (and their employees), the biggest draw is how much money they save, since schemes like salary sacrifice reduce NIC costs. When you use electric vehicle salary sacrifice schemes, the employee spreads the cost of a car through their gross pay. This reduces the income tax and National Insurance they pay each month.
Since electric cars have very low Benefit-in-Kind rates in the UK, the savings feel even more noticeable compared to traditional fuel options.
This approach removes the administrative burden of staff arranging their own deposits or sourcing costly personal finance. Employees can simply select a vehicle that suits their needs, and the pre-tax deduction will be handled automatically through payroll, making the process smooth and low-effort for the business.
All-Inclusive Packages Reduce Everyday Stress
Electric car salary sacrifice schemes often bundle key services to make the driving experience smoother. The contracts often include essentials like:
- Maintenance
- Servicing
- Tyres
- Breakdown cover
- And more
This benefits the employee because everything is included in one predictable monthly payment.
Drivers value this transparency and stability, as it helps them plan better each month and gives them peace of mind during times when bills may already feel tight. It also helps make the switch to electric driving more appealing to people who would previously find it hard to give up their petrol or diesel cars.
Flexible Options for More Control
Access to both new and used electric cars gives your employees freedom to choose a model that suits their budget and comfort level. Some schemes offer shorter contracts, so they’re not locked into long commitments, whilst others offer early termination clauses for employees who leave the company. This flexibility helps if an employee’s job or lifestyle changes, and they need a different type of car later.
Employees, and business owners managing a large fleet of vehicles, also appreciate being able to move between models. As electric technology improves, they won’t feel stuck with an outdated vehicle. This flexibility turns the salary sacrifice scheme in particular, into a more adaptable benefit rather than a long financial burden.
Predictable Costs Create Long-Term Stability
Predictable monthly costs are a major advantage for employers, especially when quarterly budgets are under pressure. Because electricity prices are typically more stable than petrol or diesel (and EVs have fewer moving parts to maintain), salary sacrifice schemes provide consistent, manageable running costs.
With a fixed monthly deduction processed through payroll, businesses gain clearer financial forecasting and long-term budget control. This stability is one of the key reasons many employers prefer structured schemes over purchasing and maintaining an entire fleet outright.
Key Takeaways
Electric car schemes continue to grow because they make cleaner driving easier, cheaper and more practical for business owners, and their employees. They get the chance to enjoy modern electric vehicles with predictable costs and fewer worries.
So, if you’re looking for a simple and affordable way to shift to electric driving, and offer your staff a sustainable, meaningful perk, now you know that salary sacrifice and other similar schemes offer a clear and manageable path.
Read more:
Why Electric Car Schemes Are Winning Over UK Business Owners