Electric car salary sacrifice –
everything you need to know
What is salary sacrifice?
Salary sacrifice allows you to pay less to drive an electric car. The car payment gets deducted from your gross salary every month, which means you save money on tax and National Insurance – between 30% and 60%.
The best part about all of this? EZOO fully manages it all in the background while keeping everything cost-neutral for your company, enhancing employee satisfaction and cutting your carbon footprint.
What’s included with an EZOO salary sacrifice?
Salary sacrifice for employees and employers
Salary sacrifice for employees
Find out how choosing a salary sacrifice scheme can effectively give you a pay rise and save you up to 60% on a leading electric car
Salary sacrifice for employers
Find out everything you need to know about offering salary sacrifice to your employees, including how you can save money and provide a desirable staff benefit.
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Salary sacrifice frequently asked questions
Yes, salary sacrifice allows employees to save on income tax and National Insurance, helping reduce motoring costs. Insurance, maintenance and more are also included, helping cut costs even more. EZOO is all inclusive, you just need to decide if you want to add on your electric car charger.
For an EZOO subscription, you must be between the ages of 25 and 75 or 21+ for leasing, a UK resident and have a UK or EU driving licence without any motoring offences in the last 36 months. You should have been in employment for at least six months, too.
Typically, salary sacrifice reduces your tax liability as your cash salary is replaced with a non-taxable/tax-relieved income. With higher earners, this is more effective, increasing after-tax pay.
There are several pros including:
- Completely cost-neutral
- Save money on tax and national insurance – save up to 60%
- Cheaper than if you were to purchase a car outright or on finance
- You can access an electric car quickly with the latest tech
- EZOO manage everything for you, taking away the hassle
- Choosing an EV is more environmentally friendly
The primary consideration is that your wage could seem lower, impacting things like a mortgage and credit application. Your salary after deductions must stay above minimum wage.
Yes, part-time employees are eligible for salary sacrifice. However, it will depend on the individual, salary, hours worked, etc.