Electric cars are for everyone through salary sacrifice

Fleet management and leasing specialist, Fleet Alliance, is emphasising that making electric cars available through a salary sacrifice scheme opens them up to all levels of employees in all types of businesses, with multiple benefits for both sides.

Under a new campaign aimed at promoting the benefits of low-cost zero emission driving for all via a salary sacrifice arrangement and using the hashtag #ElectricCarsAreForEveryone, Fleet Alliance is underlining the inclusivity of its electric car funding programme.

The scheme highlights that employee savings under a salary sacrifice scheme are generated by the reduction in gross salary, which produces reductions in income tax and National Insurance Contributions (NIC).

“We see this as the democratisation of electric cars, making them available to everyone,” said Andy Bruce, chief executive of Fleet Alliance.

“Company car drivers are already making substantial benefit-in-kind tax savings by switching to electric cars. We want to offer the same benefits to non-company car drivers through our salary sacrifice product where the savings over personally leasing a car are significant.

“From the employer’s side, there are also important advantages to advancing its ESG agenda, as well as offering an appealing staff attraction and retention benefit in a period when the labour market is particularly tight.”

The Fleet Alliance scheme offers a number of USPs; for example, a dedicated driver support team helps drivers find special offers and available stock vehicles; there is no mandatory Early Termination Insurance; there is no minimum number of employees; the company’s E-Fleet software is available to help manage the vehicles; while

competitive tendering via a panel of funders selects the most price competitive monthly rentals, with access to special offers.

Mr Bruce continued: “The obvious benefit is the significant cash saving; but it goes beyond the monthly payments to include full service and maintenance, so there is no additional budgeting for the driver. All they are left to pay for is the cost of electricity to charge the car.

“Another important point is that the driver’s personal credit lines are not impacted by this salary sacrifice agreement because that contract resides with the employer. Given the current cost of living crisis, that is a significant additional benefit and provides the employee with additional financial flexibility.”

According to industry body the British Vehicle Rental and Leasing Association (BVRLA), salary sacrifice is the fastest growing funding method in the UK. The association says salary sacrifice fleets increased by 41.2% during Q1 of 2022 reaching a total of 35,134 cars.