Why Electric Vehicle Salary Sacrifice Schemes are the way of the future

Close up of charger for an Electric Vehicle charging the car, with overlay of blog title on blue background 'Why Electric Vehicle Salary Schemes are the way of the future'

Looking towards 2024, sustainability is what most people are thinking about. Taking steps for everyday ways to reduce our emissions is an actionable thing that we can do. Bringing issues of sustainability to the workplace, there are ways that companies can help to encourage and support sustainable practices. Employees care about businesses that care; this is reflected in our survey, where out of over 5000 people, 54% said that their company’s sustainability ethos is critical to their view of the organisation. So how can you show that your company is committed to helping employees to make sustainable choices?

What’s all the fuss about Electric Cars?

Looking at transport is a key way to cutting down on fossil fuel use and air pollution. Many governments are planning to implement a ban on the sale of petrol and diesel-run cars, so eventually they will be phased out too. Electric cars are a great way to reduce pollution and also save money on refilling: while they are more expensive to purchase, recharging vs. filling up on petrol is cheaper. Ideally we would all be driving around in Electric Vehicles, right?

How attainable are Electric Vehicles?

While Electric Vehicles are a desirable option, with sleek yet practical cars, cheaper upkeep, and sustainability all making them a winner. But Electric Vehicles aren’t a viable option for everyone. Initial costs are relatively high, and with EVs being such a new technology, second-hand options are rare. So if buying a new Electric Car isn’t attainable or affordable, what’s the alternative?

Salary Sacrifice for Electric Vehicles

Salary Sacrifice. It may be a benefit that gets overlooked, as receiving a full salary outright feels like you’re getting the best out of your paycheck. But using Salary Sacrifice to get an Electric Car is a fantastic way to get the car of choice without paying out tens of thousands on the spot. With mortgages to pay and eye-watering energy bills sticking around, most people don’t have the funds to purchase an Electric Car outright. Salary Sacrifice offers an alternative way to pay for an Electric Car in a more manageable way.

How does it work?

Salary Sacrifice is a way for employees to invest their salary and reduce their total tax contributions, while still getting the most out of their monthly pay. Contributions from Salary Sacrifice are taken from gross pay, so tax and National Insurance are lower. Essentially, it’s just a different way of investing part of their salary to help contribute towards something they want. In this case, an Electric Car. My Staff Shop offers an Electric Vehicle Salary Sacrifice Scheme for employees, so that you can offer up this benefit without the admin.

To learn more about Salary Sacrifice and see the other fantastic employee benefits, request a demo today.

 

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