How Leasing Works

The Fastest Route to Lower Emissions

Switching to an electric vehicle through a salary sacrifice scheme is one of the most immediate ways for employees and employers to reduce their environmental impact. By replacing petrol and diesel cars with fully electric models, organisations can significantly cut emissions without needing to overhaul their entire operations. For many businesses, this becomes a practical first step toward broader sustainability goals, while employees benefit from driving a modern, low‑emission vehicle.

A Simple Way to Unlock Major Tax Savings

Salary sacrifice allows employees to pay for an electric vehicle lease directly from their gross salary. This structure reduces the amount of Tax and National Insurance they owe, creating substantial savings compared to a private lease. Depending on income level, employees typically save between 28 and 42 percent, making an electric vehicle more affordable than many petrol alternatives. For a typical four‑year lease, the financial benefit can be significant.

Freeing Up Personal Cash and Reducing Costs

Many drivers have thousands of pounds tied up in their current petrol car. Moving to a salary sacrifice electric vehicle allows them to release that capital by selling their existing vehicle and letting their employer provide the new one. Running costs also fall sharply. Electric vehicles are cheaper to fuel per mile, require less maintenance, and come with long battery warranties. These combined savings make day‑to‑day driving far more cost effective.

A Valuable Employee Benefit for Modern Workplaces

For employers, offering electric vehicles through salary sacrifice is an attractive way to enhance their benefits package. Businesses save on National Insurance contributions and can reclaim a portion of the VAT on the lease. More importantly, the scheme helps with recruitment and retention by giving staff access to a desirable perk that aligns with modern expectations around sustainability and wellbeing. It also contributes to corporate responsibility targets by increasing the number of low‑emission vehicles in the company fleet.

Straightforward Implementation with Full Support

Introducing a salary sacrifice scheme is simpler than many organisations expect. Employers can assess interest among staff, choose a leasing partner, and put the structure in place with minimal disruption. Support services are available to help with setup, communication, and risk management, including insurance that protects the business if an employee leaves early. Once in place, the scheme provides a clear, long‑term benefit for both the organisation and its employees.