New salary sacrifice scheme allows employees to lease an EV monthly
A new salary sacrifice scheme that allows an employee to lease a new electric vehicle on a monthly basis has launched from SOGO.
It’s the latest solution to be developed by the ultra-flexible leasing company – which launched in the UK in late 2020 by former Citroën UK managing director Karl Howkins – and means that fleets and drivers can benefit from the current 1% BiK rate on EVs but without being tied into lengthy contracts. Instead, employees can drive a new vehicle for a low fixed monthly cost, making the most of tax and National Insurance (NI) savings under the sal sac set-up.
SOGO managing director Karl Howkins said: “We believe that SOGO is the first to offer monthly EV leasing under the salary sacrifice model. Our ultra-flexible leasing will allow employees to run an EV with ease while offering companies the benefit of greater staff retention and greener fleets.
“We expect that salary sacrifice schemes will boom in popularity over the next 10 years because they allow employees to move to EVs in a very cost-effective way.”
The mobility provider added that salary sacrifice will play a crucial role in helping motorists adopt electric vehicles ahead of the ban on petrol and vehicles models in 2030 – and said it’s seen a major increase in interest in EVs since the Government announced the ICE ban.
As well as bring financial savings, an EV salary sacrifice scheme can help companies looking to make significant savings on their carbon impact as they report on environmental, social, and governance (ESG) factors. SOGO added that investors are increasingly applying these non-financial factors to identify material risks and growth opportunities as part of their analysis process.
Howkins added: “More businesses are looking to offer more flexible options to employees who may wish to choose the salary sacrifice model for both economic and environmental reasons. The approach proves popular with HR departments who can offer staff a benefit at little or zero cost to the business.”
The new scheme forms part of SOGO’s comprehensive range of services, designed to make it easier than ever to move to an electric vehicle.
The business is targeting a 5,000-strong vehicle fleet by the end of 2021, of which at least 35% will be electric vehicles as it looks to make inroads in the EV segment. Leases are available from one month to four years and the subscription model includes comprehensive insurance, maintenance and breakdown cover.
Other new developments introduced by SOGO to help fleets cut costs and emissions include its carbon-neutral leasing solution, which helps fleet customers measure, reduce and offset their carbon emissions.
It’s also offering a range of ICE vehicles for occasions when EVs aren’t viable and has also entered the van leasing sector with a range of new monthly leasing terms.