- The Electric Car Scheme outlines how much employees could save
- EV salary sacrifice can reduce costs by 20–50% compared to other purchasing options
- Savings could be redirected towards holidays, home upgrades or leisure items
- Scheme remains secure until at least 2030, easing concerns about future changes
The Electric Car Scheme is highlighting the personal benefits many UK households could enjoy if they take advantage of electric vehicle salary sacrifice arrangements, particularly as the scheme becomes increasingly popular ahead of the autumn budget.
With an average electric car retailing at around £46,000, salary sacrifice users could save around £10,000 thanks to lower tax and NI payments. This amount could comfortably fund a family break to Disneyland or other big-ticket treats.
What £10,000 in savings could buy:
- A magical driving family trip to Walt Disney World Florida
- Two weeks in Bali for a family of four
- A hot tub for the garden
- Two season tickets at most Premier League clubs
- A full home cinema setup
- Summer music festival tickets for the whole family for three years
- A significant boost to a mortgage deposit
- Home solar panels and battery storage to bring down energy bills
- Home upgrades such as double glazing or heat pumps
- And of course, with the range improvements in the latest models, new EV drivers could celebrate with a non-stop trip to Disneyland Paris.
EV salary sacrifice schemes are secured until 2030 and are expected to be extended to at least 2035 as the government works to meet its EV targets.
Whilst pension-related salary sacrifice could be cut in the upcoming budget, EV salary sacrifice was recently confirmed by the government as locked in until 2030 under current legislation – confirmed through updated Benefit-in-Kind rates.
The Electric Car Scheme CEO and Co-Founder Thom Groot commented:
“More and more employees are discovering what they can do with the money they save through EV salary sacrifice. With savings of up to £10,000 on an average electric vehicle, we’re talking about family trips to Disneyland, home improvements, or simply having significantly more money in your pocket each month.
“There’s still some confusion between pension salary sacrifice and EV salary sacrifice, but the reality is straightforward: EV salary sacrifice isn’t going anywhere – low BiK rates are government policy until 2030. It’s secure, it’s simple to set up, and it means employees can afford those extras that make life more enjoyable.”
How salary sacrifice works:
Salary sacrifice allows employees to lease an electric car through their employer, with payments taken from their gross salary before tax and National Insurance. This means employees pay significantly less than buying outright or using traditional car finance, whilst employers benefit from offering an attractive, cost-neutral employee benefit.
How EV salary sacrifice delivers these savings:
- Simple setup: Employers handle the admin
- Genuine savings: 20-50% lower costs are standard across the industry
- Long-term security: Government policy confirmed until 2030
- No cost: Salary sacrifice providers make this possible at no cost to the business to set up and run
- Complete risk protection: No risk from employees leaving thanks to The Electric Car Scheme’s risk protection
- Separate from pensions: EV schemes operate under different legislation – only pension-related schemes are under review
