Asset finance firm Lombard has launched a new salary sacrifice scheme to help drivers go electric.

Drivers who are higher-rate taxpayers can save on average 43% of the cost of leasing a brand-new EV

The scheme enables drivers to access a wide range of electric and plug-in hybrid cars on a fully inclusive basis using the salary sacrifice mechanism to provide a tax-efficient solution.

Through Lombard’s salary sacrifice scheme for businesses, drivers who are higher-rate taxpayers can save on average 43% of the cost of leasing a brand-new EV. This means a driver sacrificing £600 a month from their gross salary towards their car could save £288 on their brand-new EV, compared to if they had paid for it out of their net salary, providing a compelling reason to go electric.

The scheme launches as interest in salary sacrifice soars from businesses seeking to offer a great employee benefit whilst working to reduce the carbon emissions from their employees’ travel and commuting.

A recent survey by the BVRLA found some 80% of surveyed businesses said it was ‘likely or very likely’ that they would introduce a salary sacrifice car scheme.

Developed in partnership with ALD Automotive | LeasePlan, Lombard’s new product provides an all-in-one solution for businesses with more than 250 eligible employees. A digital interface and customer support makes it easy for businesses and their employees to get started. Businesses can use a free EV Planner tool which helps them to understand the EV readiness of their employee vehicles, signposts which cars can be transitioned, and what charging infrastructure is required.

The digital interface enables customers’ employees to browse the latest car models, choose their vehicle and select the payment terms and mileage to suit their needs. Employees can use the car for work or personal use, add an additional driver, and pay a fixed monthly cost which covers maintenance, insurance, road tax and more. Drivers can choose to add a home charge point to their order, and pay for this through salary sacrifice, spreading the cost over the term of the lease.

Stuart Clark, head of climate transition at Lombard, said: “Electric vehicles are transforming our roads. It’s easy to see why – they are cheaper to run and tailpipe emission-free. But if we are truly to benefit from the electric revolution, we need to make EVs more accessible.

“Like cycle to work but for cars, having the option to lease an EV is a hugely attractive benefit for employees, who could save hundreds of pounds every month through our salary sacrifice scheme. There are no set-up costs for businesses, making it easy for them to provide a great employee benefit, while also potentially helping to reduce their carbon emissions from their employees’ business travel and commuting.”