Electric vehicle leasing specialist DriveElectric has expanded into offering salary sacrifice, bringing a valuable benefit to businesses and drivers.

Employees can save up to 40% on an electric vehicle through salary sacrifice

Its new scheme enables employees to save up to 40% on an electric vehicle by exchanging part of their salary; the gross amount sacrificed reduces the employee’s income tax and national insurance (NIC) liability. Employees also benefit from being able to switch to a new EV with zero upfront outlay, in addition to enjoying lower vehicle running costs.

Salary sacrifice also reduces the employer’s NIC liability, while enabling businesses to boost their benefits provision with an attractive incentive to staff.

The new offering is backed by DriveElectric’s longstanding experience of electric vehicles and charging solutions for fleets; it’s been running electric vehicle leasing schemes since 2008 and has dedicated consultants on hand to advise about electric cars, supported by tax and compliance specialists, and an on-call team to answer any questions.

DriveElectric will assist organisations to promote salary sacrifice schemes to employees, and can organise EV test-drive events. DriveElectric also offers a secure portal for employers and their employees to order, manage and track their EV.

Example of cost reductions offered by salary sacrifice compared to a personal lease for an employee include a £260 monthly saving on a Tesla Model Y, or a £319 monthly saving on a Porsche Taycan, for a 40% taxpayer.

DriveElectric’s scheme can also be packaged to include a home charger if needed, as well as provide support with solutions for workplace charging, solar, vehicle to grid, and energy management and optimisation via DriveElectric’s sister company CrowdCharge.

DriveElectric MD Mike Potter said: “Salary sacrifice offers a wide range of compelling benefits. Bringing down the monthly cost of electric cars helps more drivers make the switch to EVs. This in turn reduces drivers’ vehicle running costs and helps employers to offer attractive benefits for their staff. Reducing emissions also accelerates an organisation’s progress to net zero. And this is all backed up by DriveElectric’s 15 years of expertise with electric vehicles.”