Frequently Asked Questions
16 questions
What happens if BiK tax rates increase?
Your monthly payments may rise slightly if BiK rates increase, but EVs will still offer significant savings compared to petrol or diesel cars.
Is salary sacrifice available to part-time employees?
Yes, but eligibility depends on your gross income meeting minimum wage requirements after deductions for the car.
Can I upgrade my car during the agreement?
Upgrading during the contract is typically not allowed. You’ll need to wait until the agreement ends to switch to a new model.
Do I need to pay a deposit for a salary sacrifice car?
No, there’s no upfront cost. The monthly payments are deducted directly from your salary.
How does salary sacrifice compare to a personal lease?
Salary sacrifice can be cheaper because it’s paid from pre-tax income, unlike a personal lease where payments are made after tax.
What happens if I go on long-term sick leave while I have an EV on salary sacrifice?
If on long-term sick leave, you can retain the car and continue payments as long as affordable. If your salary falls below minimum wage or statutory pay, coverage is available for up to 3 months from the start of your leave. If you no longer need the car, you can return
What happens if I go on parental leave while I have an EV on salary sacrifice?
During parental leave, you can keep the car and continue payments as long as affordable. If your salary drops below minimum wage or statutory pay, coverage is provided for up to 12 months from the start of your leave. Alternatively, you can return the car, and your employer’s early termination protection will typically cover any fees.
What happens if I leave my job while I have an EV on salary sacrifice?
If you need to return your car before the end of your agreement, an early termination fee may apply, depending on your employer’s protection policies. Check your Driver Handbook for specific details.
What happens when the car needs servicing or maintenance?
The salary sacrifice scheme includes a full maintenance plan covering servicing, batteries, and tyres under normal wear and tear. To arrange service, call our Customer Support Line on 03330 169 630. Upon delivery, you’ll receive a pack with all necessary servicing and maintenance information.
Can I set my annual mileage allowance with salary sacrifice?
Yes, you can select an annual mileage allowance ranging from 5,000 to 30,000 miles.
How long does a salary sacrifice agreement last?
You can choose a term between two and four years.
What’s included with an EV salary sacrifice?
Streamlined Onboarding: Quick and easy setup process to get your business up and running with EV salary sacrifice in no time.
Breakdown Cover
Unlimited Tyre Replacement
Accident Management
Early Termination Protection
Comprehensive Insurance (optional)
Is salary sacrifice available to everyone?
Your employer must join the scheme first. Once enrolled, eligibility typically requires employees to have completed their probation period, hold a permanent contract, be paid via PAYE, possess a valid UK driving licence, and ensure the vehicle cost doesn’t bring their salary below minimum wage. Retirement plans during the contract term may also affect eligibility.
Will my monthly payments for an EV on salary sacrifice remain the same?
Your net payments may vary based on factors like tax bracket changes or government adjustments to BiK rates.
Will I incur company car tax with salary sacrifice?
Yes, you’ll pay Benefit-in-Kind (BiK) tax on an EV through salary sacrifice. The good news is it’s set at just 2% until April 2025, increasing by 1% each year until 2028.
What is salary sacrifice?
Salary sacrifice is an employee benefit scheme where you pay for a car from your gross salary, reducing your taxable income and lowering your Income Tax and National Insurance contributions. This makes leasing an electric vehicle cost-effective, allowing savings of up to 40%.
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