Zero-Emission Car Salary Sacrifice

Save thousands in contributions.

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A simple way to make substantial savings.

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.

A genuine benefit in kind.

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

Short contracts. One payment.
Just like your mobile phone.

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:

  • Insurance.
  • Breakdown cover.
  • Servicing and maintenance.
  • Tyres.
  • Accident management.
  • Road fund licence is zero for fully electric vehicles.
  • One vehicle charging point available with most cars.
  • Leavers protection insurance.

A big benefit for your business,
employees and the planet.

Benefits to your business:

  • Reduced National Insurance contributions.
  • Greatly reduced mileage expense claims due to cheaper fuelling.
  • Help to lower carbon emissions, appealing to your employees and customers.
  • An attractive employee benefit to boost recruitment and retention.
  • Minimal scheme management required – we can help with that.
  • No financial risk to your business – the car is funded by your employee’s income, so if they leave, your business doesn’t have to keep the car.
  • If your employees drive a car, Zero Emission Car Salary Sacrifice could save both your business and your employees thousands of pounds.
  • Can help towards your ISO14001 targets.

Benefits to your employees:

  • More affordable than equivalent personal car leasing.
  • No upfront deposits.
  • No personal credit checks needed.
  • A fixed monthly amount that covers everything from insurance to breakdown cover, which makes running a car simple and allows for easy budgeting.
  • Reduced fuel bills.
  • No servicing bills or MOT failures.
  • A modern, reliable car with zero exhaust emissions every two or three years.
  • No requirement for the car to be used for business purposes.

Easy for you and 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.

The same car:

Without Salary Sacrifice

£795.00 per month*

With Salary Sacrifice

£461.00 per month**

The monthly car lease cost includes:

  • Insurance
  • Servicing and maintenance
  • Tyres
  • Breakdown cover
  • Accident management
  • Zero deposit
  • One vehicle charging point†

*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.

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Frequently Asked Questions

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:

  • 1% for 2021/22.
  • 2% for 2022/23.
  • 2% for 2023/24.

* 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.  

  • Leasing of the car.
  • Insurance.
  • Breakdown cover.
  • Servicing and Maintenance.
  • Accident management.
  • Road fund licence is zero for fully electric vehicles.
  • One vehicle charging point for the duration of the term – available with most cars.

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:

  • 1% for 2021/22.
  • 2% for 2022/23.
  • 2% for 2023/24.

*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.