Electric vehicles (EVs) are more and more common on UK roads and in fleets. By the start of last year, fully electric models made up 41% of new leased cars. Salary sacrifice and fleet schemes have driven a lot of that growth, too, with one report finding that 84% of new salary sacrifice car plans involve an EV or some kind. 

Upcoming targets like the 2030 shift away from petrol and diesel cars are fast approaching. This is a strong motivator for employers across sectors to put in place electric car schemes like salary sacrifice or company car leasing so that staff can switch to EVs with ease.

Employees find electric car schemes highly attractive

The reasons for employee popularity are clear. Under a salary sacrifice plan, the car lease is paid from gross salary. This means that a vehicle with a cash-value cost of £500/month would have a real terms cost of £365/month for a 20% taxpayer and £320/month for a 40% taxpayer, thanks to income tax and NI savings.

Even better, SG Fleet’s packages bundle everything into one monthly payment – insurance, servicing, and breakdown cover. The result is a single, pre-tax payment that’s lower and more predictable than paying privately. These perks make driving an EV through salary sacrifice or company car leasing much easier and cheaper than you might think.

Employers are increasingly offering electric car schemes

Providing an EV through salary sacrifice is a great way to help companies meet sustainability goals and appeal to staff, too. Crucially, the employer can see major NI savings as their contribution bill falls when employees choose a salary sacrifice scheme. This means that an employer can share the tax benefit with staff or just cut their fleet costs. In effect, it’s a win-win: businesses get cleaner fleets and lower costs, while employees get a big perk.

The popularity of electric car schemes pulls in talent

Studies show that 69% of employees consider benefits an important factor when choosing an employer. By giving staff access to the benefits of a competitive salary sacrifice scheme or company car leasing package, employers can stand out from the crowd, attracting and retaining top personnel.

Getting an electric car scheme up and running is straightforward

Employee car benefit providers like SG Fleet can handle the paperwork, source vehicles, arrange leases, and support you in managing your in-house payroll reductions. An employee just picks the car – be it new or used – and agrees to set a salary reduction. The main requirement is that each person stays above the National Minimum Wage after sacrifice. Once set up, everything flows through the payroll automatically. With all admin handled, companies find the schemes easy to manage.

With SG Fleet, you’ve got two standout options: Salarylease and Novalease

Both are low-hassle schemes packed with extras like breakdown cover, maintenance, servicing, and the option to add a home charger. Employees get all the perks with none of the stress, and you get a benefit that genuinely helps with retention.With Novalease, the lease sits with the employee, not the business, so there’s no employer risk and no end-of-contract admin. It even works if your employee switches jobs. Salarylease is tried and tested and keeps the admin light while giving staff access to great vehicles with zero deposit and fixed monthly costs.

EVs are also becoming more viable in daily use

Even outside of electric car schemes, EVs aren’t just for the early adopters anymore. They’re quickly becoming a part of everyday life. With over 76,000 public charging points at over 38,000 locations (a 29% increase on last year), the UK is fast approaching a point where range anxiety is a thing of the past. Apps like ZapMap make it easy to find and pay for a top-up on the go, too.

Home charging is stepping up a gear

Manufacturers like Ford and Toyota now include home charger installation as standard on some electric models, which helps drivers charge where it’s most convenient. Our own eManage Home service takes things even further, taking the hassle out of home EV charging. Employees can choose the right charger, arrange installation, and get flexible payment options, all through a fully managed, streamlined service.

Ready to help your employees go electric?

At SG Fleet, we keep your business and your employees moving with award-winning fleet and mobility solutions. We’ve been doing this for over 25 years and have been named WSB Car Scheme Provider of the Year two years in a row now. Businesses of all sizes trust us to help them offer EVs through innovative employee benefits.

Our Novalease and Salarylease solutions give your team access to any car on the UK market, including both new and used EVs. With a single fixed payment and zero associated costs, they’re designed to make life easier. You and your team get total flexibility, no unexpected bills, and a greener way to travel.

We also offer a comprehensive EV fleet management solution – eStart. With eStart, we work collaboratively to understand your goals and make your transition to an electric fleet easy and stress-free. To find out more about our fleet solutions, click here or get in touch with our team today if you have any questions.

FAQs

What is an EV salary sacrifice scheme?

It’s a company benefit where an employee agrees to give up part of their pre-tax pay in return for leasing an electric vehicle.

Who can join a salary sacrifice scheme?

Most employees can take part as long as their remaining salary stays above the national minimum wage. Employers can set their own eligibility around driving licenses or minimum service periods.

What’s included in a company car leasing package?

This depends on your provider. At SG Fleet, we offer one fixed payment that covers all vehicle-related costs except fuel or EV charging to keep things simple for you.

What about company car tax?

EVs benefit from a lower Benefit-in-Kind tax – it’s currently 3% for almost all electric cars. While this is set to increase by 1% year-on-year, it’s still considerably lower than on internal combustion engine (ICE) vehicles.