Zero-Emission Car Salary Sacrifice enables your employees to pay for a zero-emission car each month using their gross salary – before tax and other contributions are deducted. It works in the same way as other salary sacrifice schemes, such as childcare vouchers and cycle to work. Unlike the cycle to work scheme, you do not have to purchase the asset.
This means your employees do not pay National Insurance or income tax on the monthly cost of the car, and your business doesn’t pay NI contributions on this amount either. What’s more – it doesn’t cost your business anything to offer this great benefit to your employees.
Your employees will save even more money on our Zero Emission Car Salary Sacrifice scheme, compared to a petrol or diesel car, due to the tax on Benefit in Kind (BiK). The tax on BiK for salary sacrifice cars is calculated as a percentage of the price, this percentage calculation for zero emission cars is 1% for 2021/22, but for fossil-fuelled cars can be as high as 37% depending upon their CO2 emissions.*
Introduce this benefit to your employees. It’s an easy, affordable way for your employees to drive a modern, reliable zero emission car, that might otherwise be too expensive for them; and your business could pocket some great savings too.
* Source: https://www.gov.uk/guidance/company-car-benefit-the-appropriate-percentage-480-appendix-2
With Zero Emission Car Salary Sacrifice, your employees can choose from a range of cars to suit their needs and budget; at a monthly price that’s much less than if they leased the car without using the scheme.
What’s more the cars can be leased over a 24- or 36-month period, and come with a bundle of extras, very much like a mobile phone contract. Your employees don’t have to worry about a thing when it comes to their car – they just charge and go.
The monthly car lease cost can include all of this:
Benefits to your business:
Benefits to your employees:
Everything about Zero Emission Car Salary Sacrifice is designed to be simple. We’ll help organise the scheme for you.
It’s just as easy for your employees too. They get a modern, reliable zero emission car for a fixed monthly cost that includes pretty much everything they need. We’ll set everything up for them and can even help them chose the right car based on their budget and personal circumstances.
£795.00 per month*
£461.00 per month**
The monthly car lease cost includes:
*Quote for illustrative purposes only.
**Net figure based on a 40% tax payer sacrificing £795 of gross salary per month.
†Complementary with most cars.
*Quote for illustrative purposes only.
**Net figure based on a 40% tax payer sacrificing
£795 of gross salary per month.
†Available with most cars.
OpRA stands for Optional Remuneration Arrangements. It’s part of legislation introduced in April 2017 to prevent tax and National Insurance avoidance of certain cash benefits. It changed how some company cars were taxed, but it has no effect on Zero Emission Car Salary Sacrifice.
BiK is a tax on certain company benefits. The BiK charge for salary sacrifice cars is calculated as a percentage of the price. For zero emission cars, this is much lower than internal combustion engine cars, which can be as high as 37% depending on their CO2 emissions.*
BiK charges for zero emission cars:
* Source: https://www.gov.uk/guidance/company-car-benefit-the-appropriate-percentage-480-appendix-2
Our aftercare support is second to none. Both you and your employees will have easy access to all the information you need, and if anyone is still unsure about something, we’re only an email or telephone call away.
The UK Government are totally behind the roll-out of zero emission cars, as such, grants are available for the installation of up to 40 charging points at businesses, as well as personal charging points at domestic properties like your employees’ homes.
Depending on the car chosen, any additional costs above the grant for installing the charging points could be covered as part of the lease contract. We can advise you further about this when you get in touch.
Arranging the installation of the charging points is something we can handle our end, so you and your employees won’t have to worry about it, apart from filling in a simple survey form.
Running a vehicle on Zero Emission Car Salary Sacrifice is really easy. Your employees simply pay a fixed monthly amount that includes pretty much everything they need – except the power.
Primarily two things – power and Benefit in Kind (BiK) tax. Although there might be charges for wear and tear and additional mileage at the end of the lease term.
Power. The cost of the electricity to charge a car with a 250-mile range is between £2 and £4*, a lot less than the cost of petrol or diesel.
BiK. This is calculated as a percentage of the car’s price. For zero emission cars, this is very low, especially compared to internal combustion engine cars which can be as high as 37% depending on their CO2 emissions.**
BiK charges for zero emission cars:
*Check with your electricity supplier.
** Source: https://www.gov.uk/guidance/company-car-benefit-the-appropriate-percentage-480-appendix-2
Most interactions can be done digitally, by email, or over the phone. Delivery of the car, either to your employee’s home or your business, will be done following all necessary Covid-19 social distancing guidelines.
Company Number: 12830488
Company Number: 12830488
