Demand for electric vehicle salary sacrifice schemes is rocketing as businesses make use of low BiK tax rates while reducing their carbon footprint.

Fleet Alliance says its sal-sac scheme delivers monthly savings of hundreds of pounds for employees who select electric cars

Leasing and fleet management specialist Fleet Alliance said it’s seeing strong uptake of its salary sacrifice scheme and has signed up “dozens” of companies already this year.

New customers include HFD Group, a full-service property, data services and energy provider, which has introduced a salary scheme with Fleet Alliance for all 135 of its employees.

The Glasgow-based business previously operated a company car scheme for mainly senior managers along with light commercial vehicles for operational staff. It’s now mostly replaced the company cars with a salary sacrifice scheme, rolled out as a wider benefit for all employees. Those employees who previously qualified for a company car now receive a cash allowance to select their own vehicles, although this may be phased out over time.

HFD finance director Stuart Teape said: “A salary sacrifice scheme that promotes and delivers electric cars is very much in line with our carbon neutrality policy, while we also see it as an additional benefit for our employees.

“Following internet research, we appointed Fleet Alliance as our salary sacrifice scheme provider and the scheme has been working very well so far, with increasing uptake amongst our staff. I, myself, have switched from a diesel to a BMW i4, which has a range of 230 miles, with no problem.”

Teape said other benefits of the Fleet Alliance scheme included its simple set-up and the fact that it provides a home charger for all employees who opt for an electric car as part of the monthly cost.

Fleet Alliance CEO Andy Bruce said the success of the HFD scheme was typical for all businesses signing up to its solution – which delivers monthly savings of hundreds of pounds for employees who select electric cars, taking advantage of tax rates for EVs of just 2% until the end of 2024/25.

“We build further on those savings by using a panel of up to nine funders to ensure both our clients and their employees always receive the lowest rental rate available in the market.”

Bruce continued: “While our scheme delivers an iron-clad benefit for all employees, it also provides an excellent opportunity to reduce a business’s collective carbon footprint by steering employees into zero-emission vehicles.

“When many employees have witnessed a cost-of-living squeeze but continue to be concerned about global warming and the impact on the environment, there has never been a better time to switch to a brand-new all-electric car through a salary sacrifice scheme,” he stated.