Salary Sacrifice for Employees
The Electric Car Salary Sacrifice Scheme for employees allows you to save up to 50% on any electric car.
Don't be confused, our salary sacrifice process is simple for Employee's and employers.
So what Is Salary Sacrifice?
The electric car salary sacrifice is an employee benefit through your employer. With salary sacrifice, you give up a fixed portion of your gross salary each month in return for a brand-new electric car. This tends to be for a guaranteed contract period, which typically is three years but can vary.
Due to your reduced gross salary, it means you can not only have cost savings, not only on income tax, but national insurance too.
It is key to note that a salary sacrifice vehicle is eligible for Benefit In Kind Tax. Benefit in Kind (BIK) on your electric car is only 3% for 2025/26, saving you money.
Benefit in Kind is a tax on a company car, which is based on the CO2 emissions of your vehicle and the P11D of the vehicle. Getting an electric car can greatly reduce your monthly expenses. For the year 2025/26, the rate is 3%, rising to 4% the following year. In comparison, petrol or diesel cars can have a rate of up to 37%, depending on their emissions.
While electric cars are often perceived as expensive, the electric car salary sacrifice scheme provides you with a unique opportunity to take advantage and make leasing one more accessible. As long as your gross pay does not go below the national minimum wage when they join.
By opting for the electric salary sacrifice scheme, you can bypass concerns such as the depreciation of car value, a common issue with the relatively high prices of electric vehicles.
Despite the cost, you get the advantage of driving a brand-new car. The scheme extends its benefits by covering expenses related to insurance and maintenance. Charging an electric vehicle is notably more economical than fuelling traditional petrol and diesel cars, providing additional savings.
Bring This Scheme to Your Workplace
Salary Sacrifice Portal
At Fleetsauce, our Salary Sacrifice Portal makes it quick and easy for employees to get a tailored quote for an electric vehicle. You can personalise everything to suit your needs—budget, mileage, vehicle size, and more. Compare multiple quotes, choose what works best for you, and once you're happy, simply wait for your employer to approve it.
After approval, your vehicle will either be ordered from the factory or delivered from stock, depending on availability.
Take a look at our Salary Sacrifice Calculation portal below, showing you how easy it is for Employers and Employees to use.
*Rentals are for example only as it was in demo set up.
Lower Monthly Payments
Insurance & Maintenance included
No Hidden Fees
What Salary Sacrifice Means for You as an Employee
Employer Sets Up the Scheme
We work with the employer to set up a salary sacrifice car scheme that is simple, efficient, and easy to manage. Our platform provides quick quotes and a wide range of electric vehicles to choose from.
Employee Chooses a Car
The employee selects an electric car and agrees to exchange a portion of their gross salary in return. This sacrifice covers the cost of the vehicle, typically including insurance, maintenance, and servicing.
Employees Save Money
Employees can save up to 50% on the cost of an electric vehicle through tax and National Insurance savings — making it one of the most cost-effective ways to drive electric.
Example Payslip for Salary Sacrifice
Below is an example payslip with and without a salary sacrificed leased car. This is for reference only & is designed to help you understand the figures, ultimately, helping you to decide whether or not to lease a car via a salary sacrifice.
All-Inclusive
The monthly cost covers everything — insurance, maintenance, MOT, servicing, and roadside assistance.
No Hidden Fees
What you see is what you pay. We're transparent with pricing, so there are no surprises.
Best Price Guarantee
Our expert team searches daily for the best deals to make sure you're getting great value.
Tax Savings
Reduce your gross salary and save on income tax and National Insurance through salary sacrifice.
Early Termination Protection
If things change, you’re covered. That includes resignation, parental leave, and other common life events.
Charger
You can choose to include the cost of an EV home charger in your monthly salary sacrifice payment. That means no upfront costs and no stress about how or where you’ll charge your vehicle. It’s a simple, convenient solution with a charger installed at your home.
Help Bring This EV Benefit to Your Workplace. It Starts With You
This scheme offers employees the chance to drive a brand-new electric vehicle through salary sacrifice. It provides benefits not only to the employee but also to the employer, with savings on National Insurance contributions and a valuable perk that can enhance employee satisfaction.
Best of all, there’s no extra work or hassle for the employer. We handle everything, setting up the scheme for free, and can have your employer registered on our salary sacrifice portal in just 30 minutes.
If you believe this could be a great addition to your workplace, we’re here to help get the conversation started. Simply fill out the short form below to let us know who we should speak to within your organisation. Once we have the details, we’ll take care of the rest.
It’s always worth a conversation.
Bring This Scheme to Your Workplace
FAQs
An electric car salary sacrifice is a scheme that allows you to give up a portion of your salary in exchange for a brand-new electric car. Here is how you will benefit from the scheme:
- Lower taxable income: by sacrificing a portion of your salary to pay for an electric vehicle you have a lower tax & national insurance.
- The vehicle includes full servicing (including tyres), insurance and no large initial payments.
- Full recovery for UK mainland and European travel.
- Cheaper running costs: electric cars are cheaper to run than traditional combustion engines. They are exempt from road tax, and the costs of charging is significantly cheaper than diesel and petrol.
- Environmental benefits: electric cars produce zero emissions, which is better for the environment. Reducing your personal carbon footprint.
We provide ANY make and model of car! All our electric cars meet the eligibility criteria for salary sacrifice schemes.
To be eligible for a salary sacrifice scheme, it is important to ensure that your monthly rental deductions for the car lease do not cause your annual salary to fall below the national minimum wage.
No, we supply brand-new electric vehicles to everyone on the scheme. Salary sacrifice makes leasing a brand-new electric vehicle more affordable than ever.
Our Electric Car Salary Sacrifice Scheme allows you to save up to 50% on an electric car by the tax and national insurance savings from your salary sacrifice agreement.
Yes, with Fleetsauce insurance and maintenance (servicing, repairs and tyres) are included in your agreement.
Yes! Once you receive the car through salary sacrifice, you have the freedom to use the car whenever you desire.
As we provide all makes and models of electric cars, so we can offer you any electric vehicle you desire on our scheme. It is important to choose your car carefully as you will be entering into an agreement with your employer for the length of the agreement (typically 3 years), anticipating any changes that may occur in the time period.
Another point to consider is the suitability of the electric vehicle, as it will require charging - so make sure you are able to fit a charging point (or at least have access to one).
No, you do not own the car, the scheme is a form of long-term lease, where your business has leased the vehicle and provided you with access to drive the vehicle for the duration of the contract.
Yes, your payslip will include information about your EV salary sacrifice. Your payslip will still contain your gross salary figure, as well as details of any salary sacrifice elements such as your EV.
You can find an example above illustrating how salary sacrifice will affect your payslip. Please note, this is for demonstration purposes only, meant to help you understand the figures.
Salary sacrifice has been around for many years for items such as pension contributions, childcare vouchers and bikes to work. It should not affect your entitlement to mortgages or other loans. You
may have already heard of salary sacrifice, and mortgage companies have been aware of the concept for a long time. The pre-sacrifice pay information is still provided with the figure appearing on your
payslip, which you can provide if asked to confirm by a lender.
Built into your EV contract is a set mileage allowance, which you will have chosen when signing the contract and quoting the vehicle. This mileage covers the maximum number of miles your car is expected to do over the duration of your lease.
If you exceed the agreed mileage at the end of the contract, you will be subject to an excess mileage charge. This rate is included in your original EV quote and shown as a pence-per-mile figure. It applies to every mile driven over your agreed allowance.
Each vehicle's excess mileage charge varies, so it's always worth checking this in advance. Choosing the correct mileage agreement at the start of your contract is important to avoid unexpected charges later on.
You may be allowed to amend your contract once during the term if you’ve significantly over- or under-estimated your annual mileage.
The electric car is provided to you via your company through a lease, and it is subject to fair wear and tear guidelines. These guidelines are set by the BVRLA (British Vehicle Rental & Leasing Association) and define the acceptable level of wear on the vehicle. They cover details such as the location and size of any scratches or dents to the bodywork.
Any damage considered beyond fair wear and tear may result in damage recharges at the end of the lease.