Senior managers still not aware of 0% BiK on electric vehicles
Fleets across the UK are likely missing out on the cost-saving benefits of running electric vehicles but a new EV salary sacrifice scheme from LeasePlan could help with their implementation.
Although new Benefit-in-Kind rates went live in April, bringing a 0% rate for fully electric cars for the 2021/21 tax year, one fifth (20%) of HR bosses aren’t aware of the recent change.
Yet, the majority (62%) of HR bosses and senior business leaders have been challenged to reduce the cost of employee perks and benefits since COVID-19.
The study of 252 UK HR decision makers and senior company leaders also showed half still believe that EVs through a salary sacrifice scheme add cost to their organisation, which is not true.
Yet, more than half of employees (57%) have shown an increased interest in EVs since March 2020, and over eight in 10 (86%) bosses said it was important to demonstrate their corporate responsibility progress.
To help fleets and drivers make the transition to EVs and cut costs and emissions, LeasePlan has launched a new EV-focused SalaryPlan solution.
Chris Black, LeasePlan’s commercial director, said: “With cost savings and sustainability front of mind for both employees and employers, the change in taxation that was introduced in April means that EVs are now a really viable option for both. However, perceived cost remains an issue, and one we feel that we need to address.”
The new EV SalaryPlan enables employees to get a brand-new, environmentally friendly vehicle, while benefiting from the current zero BiK rate for EVs and savings on income tax and National Insurance. Employers can also take advantage of National Insurance savings.
Black continued: “Through SalaryPlan, a premium four-door hatchback (Polestar 2) will cost the employee under £400 per month including servicing and insurance. What’s more, we also offer early termination protection from events such as maternity leave, redundancy and resignation. This provides additional peace of mind, especially during this turbulent time. In addition, a home charge point is included with most vehicles making the switch to electric much easier.”
He added: “We know that despite an increase in home working, employees still need transport options. Now more than ever, people are turning to private transport rather than public for their own safety. That’s why we believe SalaryPlan is the ideal solution; not only to give employees options that suit their sustainable and cost-conscious requirements in this new world, but to offer employers cost savings and environmental benefits to add to their CSR initiatives.”