More than two-thirds (68%) of SMEs are considering offering employees electric car salary sacrifice scheme, new research has found. 

Over half (56%) of SMEs plan to implement EV salary sacrifice schemes in the next 12 months

While just 13% of SMEs currently provide such schemes, over half (56%) plan to implement them in the next 12 months, according to specialist flexible fleet insurer Churchill Expert, part of Direct Line Group.  

Eco reasons factor high in adoption plans; half of SMEs (48%) believe that it’s part of their company’s responsibility to reduce its carbon footprint while 37% believe it would be irresponsible not to offer EV salary sacrifice.  

But the benefits to employees – and the company as an employer – are also a huge incentive. A total of 45% of companies believe that offering such schemes will have a positive effect on retaining and recruiting talent. This is backed by additional research which found 7.4 million (33%) of workers who drive would view their employer more positively if they offered the scheme, and 3.8 million (17%) would consider switching jobs if a similar company offered it.  

Uptake is high too; almost half (49%) of employees who drive said they have already signed up to the initiative if made available to them.  

Nicola Richmond, head of Churchill Expert flexible fleet partnerships, commented: “Our research shows there is tremendous appetite for this scheme. As everyone looks to do their bit for the planet and reduce their own carbon footprint, it’s great to see companies also taking their contribution seriously.    

“While availability for the scheme at the moment is low, it’s encouraging to see that companies believe it is part of their responsibility to implement it in the next year. Recently company benefit packages have been forefront of mind, so the introduction of such initiatives can only have a positive effect on how current and potential employees view an organisation.”   

The research has been published as a BVRLA campaign urging the Chancellor to keep Benefit-in-Kind (BiK) rates low post-2025 continues to gather momentum. Such low rates are an essential factor in the benefits of salary sacrifice – 80% of salary sacrifice orders are for battery electric vehicles due to their appealing tax rates.    

They’re also a key reason why nearly 60% of electric vehicles on UK roads are company-registered.  

The campaign, which has now gained the support of Tusker, includes a key Westminster event in July that will educate MPs on the importance of maintaining attractive BiK rates to drive the momentum of EV adoption post-2025. The BVRLA is also encouraging fleet industry professionals to write to their local MP via an online letter to educate them on how company car schemes are democratising the move to EVs.