- The Electric Car Scheme reveals what employees could do with the cash saved through salary sacrifice schemes
- Analysis shows salary sacrifice can save 20-50% on average EV compared to buying outright or traditional finance
- From holidays to home improvements – the hidden cost of not using salary sacrifice
- Confusion tackled as EV salary sacrifice confirmed secure until 2030
With the average electric vehicle costing £46,000 and salary sacrifice offering 20-50% savings compared to buying outright or traditional finance, employees using the scheme could save on average £10,000 – money that could fund everything from a family trip to Disneyland to a hot tub for the garden.
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.
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