![[UK] Salary sacrifice EVs could help with cost of living crisis](http://globalpayrollassociation.com/cdn/shop/articles/bigstock-Electric-Car-Is-Changing-On-St-431375366_1200x.jpg?v=1655489900)
According to Fleet Evolution, “there has never been a better time” to consider switching staff into an electric car provided under a salary sacrifice scheme, Fleet News reports.
The company said there is a misconception that salary sacrifice schemes are for employees who are paying tax at 40 per cent but the scheme also benefits individuals paying tax at 20 per cent, as you cannot allow a salary sacrifice to take net pay below the minimum living wage.
Based on figures from the UK Government car cost calculator, the company said for a five-year-old Vauxhall Astra 1.4T 16v 150bp SRi 5dr, the total annual running cost over a typical 10,000 miles is £8,070 a year or around £675 a month, including depreciation, fuel, SMR and insurance.
Andrew Leech - managing director at Fleet Evolution - said, “However, by having a comparable electric car under a company-provided salary sacrifice scheme, such as a VW ID3 Life Pro, a typical 20 per cent taxpayer would incur a lease rental cost of £322 per month to travel the same 10,000 miles, with recharging at home typically costing around £50 a month; that’s around half of what they’d pay in running their own car.
“For staff in lower pay brackets, this saves a significant proportion of their monthly take-home salary at a time when living costs are coming under unprecedented pressure.
"At the same time, they will also be making a major contribution to reducing their company’s carbon footprint.
“For employers, from an ethical viewpoint, going down an EV salary sacrifice route shows them in a positive light in trying to help their employees manage their living costs at a time of price rises across the board and in just about every area of society.”
The average car now reportedly costs more than £100 to fill, despite the Government announcing a £5bn package to reduce costs, in March.
Source: Fleet News
(Link and quotes via original reporting)
According to Fleet Evolution, “there has never been a better time” to consider switching staff into an electric car provided under a salary sacrifice scheme, Fleet News reports.
The company said there is a misconception that salary sacrifice schemes are for employees who are paying tax at 40 per cent but the scheme also benefits individuals paying tax at 20 per cent, as you cannot allow a salary sacrifice to take net pay below the minimum living wage.
Based on figures from the UK Government car cost calculator, the company said for a five-year-old Vauxhall Astra 1.4T 16v 150bp SRi 5dr, the total annual running cost over a typical 10,000 miles is £8,070 a year or around £675 a month, including depreciation, fuel, SMR and insurance.
Andrew Leech - managing director at Fleet Evolution - said, “However, by having a comparable electric car under a company-provided salary sacrifice scheme, such as a VW ID3 Life Pro, a typical 20 per cent taxpayer would incur a lease rental cost of £322 per month to travel the same 10,000 miles, with recharging at home typically costing around £50 a month; that’s around half of what they’d pay in running their own car.
“For staff in lower pay brackets, this saves a significant proportion of their monthly take-home salary at a time when living costs are coming under unprecedented pressure.
"At the same time, they will also be making a major contribution to reducing their company’s carbon footprint.
“For employers, from an ethical viewpoint, going down an EV salary sacrifice route shows them in a positive light in trying to help their employees manage their living costs at a time of price rises across the board and in just about every area of society.”
The average car now reportedly costs more than £100 to fill, despite the Government announcing a £5bn package to reduce costs, in March.
Source: Fleet News
(Link and quotes via original reporting)