Salary sacrifice for electric cars

Salary sacrifice is an agreement where an employee gives up part of their gross salary in exchange for a non-cash benefit – like an electric car. It reduces income tax and National Insurance, making EV driving more affordable.

Yes, salary sacrifice allows employees to save on income tax and National Insurance, helping reduce motoring costs. Insurance, tax, maintenance and more are also included, helping cut costs even further.

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 benefits to choosing salary sacrifice including:

• Completely cost-neutral for the employer
• 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

However, you must consider 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.

At EZOO we offer a range of benefits including all-inclusive packages and flexible contracts, as well as one of the largest, most exclusive ranges of electric cars on the market.

View our guides to find out more about how we compare to other electric car salary sacrifice schemes and discover which one might be best for you:

Who offers the best electric car salary sacrifice scheme?
What cars are available from the top salary sacrifice providers?
Electric car salary sacrifice comparison

Or you can contact a member of our expert team who will be more than happy to discuss your options and how we can help you.

Yes, the terms are often used interchangeably. Both involve giving up a portion of salary in return for a benefit, such as a leased EV, with associated tax and National Insurance savings.

If you leave your job, the agreement usually ends. Some employers offer early termination protection, but if not, you may need to pay an exit fee or take over the lease personally. Always check the terms before signing up.