At EZOO, we believe the future of mobility should be shaped by everyone – and that means making sure women are visible, celebrated, and empowered within the EV sector.
That’s why we’re proud to be a founding Benefits Partner of the very first Global Women in EV Day, launching on 10th February 2026. This new international initiative, led by renowned EV advocate Gill Nowell, is all about championing the women driving change in our industry, whether they’re behind the wheel, in the boardroom, or on the front lines of innovation.
Creating a more inclusive EV industry
As a business co-founded by COO Charnjit Saranna, EZOO is committed to celebrating women in what has historically been a male-dominated space. While the electric vehicle sector is making progress in terms of representation, we know there’s more work to do – and we’re here to help accelerate that change.
We’re not just offering our name to the cause. We’re backing this movement with action – by sharing stories of inspiring women in EV, raising the profile of female leadership, and supporting initiatives that make the industry more inclusive from the inside out.
“Building a truly diverse and representative sector needs action and inspiration.
Working alongside Gill and those running Global Women in EV Day, we’re backing an event that can make a real difference – making women’s voices heard, changing working practices now, and making the way into the EV sector easier for women in the future. I’m delighted that EZOO is on board from the very beginning.”
A movement for change – launching 10th February
The inaugural Global Women in EV Day will officially launch at Octopus Electroverse HQ in London, marking the start of a powerful movement to elevate visibility, equity and diverse leadership across clean transport.
As a company passionate about the transition to electrification, we’re excited to be part of this next chapter – one that helps make the EV space not just greener, but fairer too.
Thinking about making the switch to an electric vehicle? You’re not alone.
With over 1.75 million fully electric cars now on UK roads and EV adoption growing at 26% year-on-year, more employees are exploring whether going electric makes financial sense.
The upfront price difference between electric and petrol cars is narrowing, but there’s still a gap.
Purchase Price: The Initial Investment
The most obvious difference hits you first: electric cars generally cost 18-20% more to purchase than their petrol equivalents.
In 2026, the average new electric car costs between £48,000 and £50,873, whilst a comparable petrol car sits around £21,000. That’s quite a difference.
However, this average is skewed by the number of premium models in the EV market. More affordable options like the MG4 and Dacia Spring are bringing these costs down considerably.
Fuel Costs: Where EVs Start to Shine
This is where the numbers get interesting for employees.
Charging at Home
Home charging remains the most economical option for EV drivers. With electricity currently around £0.28 per kWh on standard tariffs, charging at home for 8,000 miles annually costs approximately £573.
Switch to an EV-specific tariff with off-peak rates as low as 7p per kWh, and you could reduce your annual home charging costs to around £92-£150 for the same mileage. That’s a saving of over £400 compared to standard rates.
The Petrol Comparison
With petrol hovering near £1.78 per litre, a typical petrol car costs around 14.5p per mile to run. For an average driver covering 8,000 miles annually, that’s approximately £1,160 on fuel alone.
Compare that with home charging costs of £573 on standard tariffs (or as little as £92-£150 on EV tariffs), and you’re looking at savings of £600-£1,000+ per year.
Maintenance and Servicing: Fewer Moving Parts, Lower Bills
Electric cars have a significant advantage here. With no oil changes, no timing belts, no exhaust systems, and far fewer moving parts, EVs are mechanically simpler.
Average annual costs
Electric car servicing: £140-£250 (average £165)
Petrol car servicing: £205+
That’s approximately 24% cheaper for EVs, potentially saving you £600-£1,200 annually on servicing, repairs, and maintenance combined.
The regenerative braking system in EVs also means less wear on brake pads and discs, reducing replacement costs significantly over the vehicle’s lifetime.
Road Tax (VED): No More Free Ride, But Still Cheaper
This is one area where the landscape has changed. From 1st April 2025, electric cars are no longer exempt from Vehicle Excise Duty.
Current VED rates for 2026
First year rate for new EVs: £10
Standard annual rate: £195
Expensive Car Supplement (cars over £40,000): Additional £355 for the first five years.
Whilst EVs no longer enjoy zero road tax, the rates remain competitive with low-emission petrol vehicles, and you won’t pay the hefty first-year rates that high-emission petrol cars attract (up to £2,365 for the highest polluters).
Insurance: The Gap is Narrowing
EV insurance has historically been more expensive, but the difference is shrinking rapidly as insurers gain more data on electric vehicles.
In 2026, the average comprehensive EV insurance sits around £670 annually, typically just 1-15% higher than equivalent petrol models. Compare this with previous years when EVs could cost 30-50% more to insure, and the trend is clear.
For some models, particularly popular EVs with strong safety records, insurance costs are now virtually identical to petrol equivalents.
Here’s where the numbers become truly compelling for employees. Through salary sacrifice schemes like those offered by EZOO, you can save up to 60% on the cost of an electric vehicle.
How It Works
Instead of paying for a car lease from your take-home pay, salary sacrifice deducts the cost from your gross salary before tax and National Insurance are calculated. You then pay Benefit-in-Kind (BiK) tax on the vehicle.
BiK rates for 2026
Electric cars: 4% (rising from 3% in 2025/26)
Petrol/diesel cars: 20-37% depending on emissions.
That’s a massive difference. An electric car through salary sacrifice attracts just 4% BiK, whilst a petrol company car could be taxed at nearly ten times that rate.
What’s Included?
Most salary sacrifice schemes bundle everything into one predictable monthly payment:
The vehicle lease
Comprehensive insurance
Maintenance and servicing
Road tax
Breakdown cover
Tyre replacement
No unexpected bills, no hassle with insurance renewals, and no large upfront costs.
Looking Ahead: What’s Changing?
From April 2028, a new per-mile tax (eVED) will be introduced for electric vehicles at 3p per mile. For an average driver covering 8,500 miles annually, that’s approximately £250 per year.
However, even with this additional cost, electric cars through salary sacrifice schemes will remain significantly cheaper than purchasing or leasing a petrol car privately, thanks to the continued low BiK rates (rising gradually to 9% by 2029/30, but still far below petrol/diesel rates).
The Bottom Line for Employees
For employees with access to home charging and a salary sacrifice scheme, the financial case for going electric is compelling:
✓ Annual running costs: £600-£1,000+ less than petrol (with home charging). ✓ Maintenance savings: Up to £1,200 annually. ✓ Salary sacrifice savings: 20-60% off monthly costs. ✓ All-inclusive packages: No unexpected bills or admin hassle. ✓ Urban exemptions: Save on congestion and clean air charges.
Whilst the upfront purchase price remains higher, the combination of lower running costs and significant tax advantages through salary sacrifice means that for most employees, an electric car now represents better value over the ownership period than its petrol equivalent.
If you’re considering a company car – or you’ve just been offered one – you’ve probably come across the term “Benefit in Kind” or “BiK tax”. It sounds complicated, but it’s actually quite straightforward once you understand the basics.
The Simple Explanation
Benefit in Kind is essentially a tax on non-cash perks your employer provides. If your company gives you something valuable beyond your salary – like a car, private medical insurance, or gym membership – HMRC considers this part of your overall compensation package and taxes it accordingly.
For company cars, BiK is the tax you pay for having access to a vehicle you can use for personal journeys, including your daily commute. It’s sometimes called “company car tax”, and it’s been around for decades as a way to ensure employees pay tax on the full value of their employment benefits.
How Is BiK Calculated?
BiK tax isn’t random – it follows a specific formula based on three key factors:
1. The car’s P11D value: This is the list price of the car when new, including VAT, delivery charges, and any optional extras fitted at the factory. Think of it as the official taxable value of the vehicle.
2. The car’s CO₂ emissions: This determines the BiK percentage rate. Lower emissions mean lower BiK rates. Electric vehicles have zero tailpipe emissions, which is why they attract the lowest BiK rates available.
3. Your income tax band: The final amount you pay depends on whether you’re a basic rate (20%), higher rate (40%), or additional rate (45%) taxpayer.
The formula is: P11D value × BiK percentage × Your income tax rate = Annual BiK tax. Divide by 12 to get your monthly amount.
Why Are Electric Vehicles So Tax-Efficient?
The government deliberately set ultra-low BiK rates for electric vehicles to encourage adoption and support the UK’s net-zero targets. Because EVs produce zero tailpipe emissions, they sit in the lowest possible BiK band.
Current and future EV BiK rates
2025/26: 3%
2026/27: 4%
2027/28: 5%
2028/29: 7%
2029/30: 9%
Even when the rate reaches 9% in 2029/30, it will still be roughly one-third of what you’d pay for an equivalent petrol or diesel car. The tax advantage is substantial and long-lasting.
BiK and Salary Sacrifice
Here’s where things get interesting. If you’re getting your electric car through a salary sacrifice scheme, BiK still applies – but the overall savings become even more impressive.
With salary sacrifice, you exchange part of your gross salary (before tax) for the car. This reduces your taxable income, so you save on both income tax and National Insurance. You then pay BiK tax on top, but because EV BiK rates are so low, the combined effect still delivers massive savings.
What’s Included in BiK?
BiK tax only applies to the car itself. If your company also provides fuel for personal use, there’s a separate fuel benefit charge (though this rarely applies to electric vehicles in practice).
Importantly, several things are not subject to BiK:
Workplace charging (completely tax-free)
Business mileage (reimbursed separately)
Home charging costs if you keep receipts and claim back business use
This makes electric vehicles even more attractive, as you can charge for free at work without any tax implications.
Does Everyone Pay BiK?
Almost everyone with a company car pays BiK if they can use it for personal journeys. The only exceptions are:
Pool cars: Vehicles shared between multiple employees, kept at work overnight and at weekends, with no private use allowed. These are BiK-exempt.
Business-only use: If you genuinely never use the car for personal journeys (including commuting), you won’t pay BiK. But HMRC is strict about this – if you drive it home even once, it counts as personal use.
For most people with company cars, BiK is unavoidable. But with electric vehicles, it’s also minimal.
How Is BiK Paid?
BiK is deducted directly from your salary through PAYE (Pay As You Earn), just like income tax. Your employer calculates the amount and takes it from your monthly pay, so you don’t need to do anything.
Each year, your employer reports the benefit on your P11D form, which HMRC uses to verify that the correct amount of tax has been collected.
Final Notes
Benefit in Kind might sound like an extra tax burden, but it’s actually a fair system that ensures everyone pays tax on their total compensation – not just their cash salary.
For electric vehicle drivers in 2026, BiK rates remain incredibly low. At 4% for the current tax year, you’re paying a fraction of what petrol or diesel company car drivers face. Even as rates gradually increase over the next few years, EVs will remain the most tax-efficient company car choice by a considerable margin.
We’re thrilled to share that our co-founder and COO, Charnjit Saranna, has been recognised by Auto30Club as a recipient of its 2026 Inspiring Automotive Women Award.
This award celebrates individuals who lead inclusively, drive cultural change, and serve as role models within the automotive industry. It recognises passion, purpose, drive and commitment – values that sit at the heart of everything we do at EZOO.
Almost 30 Years in Automotive
With a career spanning almost three decades in the automotive industry, Charnjit co-founded EZOO in 2018 alongside her husband Lash. From day one, the mission has been clear: to play a driving role in accelerating the transition to electrification through our service offer and personalised customer care.
What sets us apart is our commitment to making EV adoption simple and accessible. By offering the largest possible choice of electric vehicles with flexible Salary Sacrifice and Business Subscription options, we’ve designed a system that gets people behind the wheel of an electric car quickly and easily.
A Champion for Diversity and Inclusion
The judges were particularly impressed with Charnjit’s continued work to make the automotive industry a welcoming career for the next generation of female business leaders. As a true champion of diversity and inclusion, she’s helped to put EZOO on the map as a business that challenges the status quo and does things differently.
Commenting on the announcement, Charnjit said: “I’m delighted to be named alongside some of the automotive industry’s most inspiring female leaders in the Auto30Club’s Inspiring Automotive Women Award. Championing underrepresented groups and helping women to thrive in the workplace is one of my passions, so I’m glad it has helped to put EZOO on the map as a business challenging the status quo and doing things differently.
“When Lash and I founded the business, we wanted to create a totally unique offer that really worked for our customers. By offering the largest possible choice of EVs with a range of leasing and subscription options, we’ve designed a system to get people behind the wheel of an electric car quickly and easily, making the transition to EV simple!”
The Awards Ceremony
The full list of award recipients will be unveiled on Wednesday 11 March 2026, as part of a VIP reception at the Hotel Intercontinental on Park Lane, London. Taking place alongside the IMI Awards Dinner, an overall winner will also be named on the night.
Latest in a String of Successes
This recognition is the latest in a long line of recent successes for both Charnjit and EZOO. Alongside expanding the team and announcing a number of important new partnerships, such as our partnership with benefits platform Engage Health Group, we’ve taken home a whole host of awards over the past 12 months – including Charnjit being named as one of ElectricDrive’s Top Women in EV.
We’re incredibly proud of Charnjit’s achievement and what it represents – not just for her personally, but for our entire team and the values we stand for as a business.
EZOO is excited to announce a new partnership with Engage Health Group, a leading employee benefits brokerage and consultancy specialising in health and protection policies for businesses across the UK and globally.
This collaboration brings together EZOO’s electric vehicle salary sacrifice scheme with Engage Health Group’s expertise in delivering employee benefits solutions, making it easier than ever for businesses to offer sustainable, cost-effective EV benefits to their teams.
A Partnership Built on Shared Values
Both EZOO and Engage Health Group share a commitment to helping businesses support their employees while reducing administrative burden. Engage Health Group’s approach of providing no-obligation advice and full administrative support throughout the life of any policy aligns perfectly with EZOO’s mission to make EV adoption simple, personal, and accessible.
“We’re delighted to partner with Engage Health Group,” says Lash Saranna, CEO and Co-Founder of EZOO. “Their dedication to reducing the time HR teams spend on benefits administration mirrors our own commitment to making salary sacrifice schemes hassle-free for employers. Together, we can help more businesses offer meaningful benefits that support both their people and the planet.”
Getting Started
Engage Health Group clients interested in adding EZOO’s electric vehicle salary sacrifice scheme to their benefits offering can find more information on Engage Health Group’s marketplace partner page or by contacting EZOO directly here.
For businesses looking to attract and retain top talent while advancing their sustainability goals, this partnership offers a straightforward solution that benefits everyone involved.
The recent Budget announcement has sparked quite a bit of chatter amongst EV drivers and those considering making the switch.
If you’re wondering if your salary sacrifice scheme is affected, what the new pay-per-mile charge means in practice, and whether now is still the right time to go electric, you’re in the right place.
Good News – EV Salary Sacrifice Remains Untouched
First things first – and this is the big one that’s causing unnecessary worry – your EV salary sacrifice scheme is completely unaffected by the Budget changes.
The pension-related salary sacrifice reforms announced in the Budget apply solely to pension contributions, not electric vehicle schemes. From 2029, there will be a £2,000 cap on pension contributions made through salary sacrifice for National Insurance purposes, but this has absolutely nothing to do with car schemes.
If you’re currently leasing an electric vehicle through salary sacrifice, or you’re considering it, you can breathe easy. This remains one of the most tax-efficient ways to drive an electric car, with potential savings of hundreds of pounds each month compared to traditional leasing or purchasing.
The 3p Per Mile Charge: Context is Everything
Yes, the government has introduced a new Electric Vehicle Excise Duty (eVED) starting in April 2028. Electric vehicle drivers will pay 3p per mile, whilst plug-in hybrid drivers will pay 1.5p per mile. But before you panic, let’s put this into proper perspective.
What Does This Actually Cost?
Based on typical annual mileage, here’s what you’d be looking at:
8,000 miles per year: £240 annually (£20 per month)
10,000 miles per year: £300 annually (£25 per month)
12,000 miles per year: £360 annually (£30 per month)
For plug-in hybrid drivers covering the same distances, you’d pay half those amounts.
EVs Still Win on Running Costs
Even with this new charge, electric vehicles remain significantly cheaper to run than petrol or diesel cars.
The 3p per mile rate is approximately half what the average petrol or diesel driver pays in fuel duty. When you factor in the lower cost of electricity compared to petrol, reduced maintenance expenses, and the other tax benefits, the financial case for EVs remains compelling.
Consider this example: A typical petrol car driver covering 10,000 miles annually might spend around £1,200-1,500 on fuel alone (at current prices). An EV driver would pay roughly £300-400 for electricity plus the £300 eVED charge – still saving hundreds of pounds per year, before you even account for lower servicing costs.
How Will It Work?
The government has been clear about protecting driver privacy. There won’t be any tracking devices or GPS monitoring. Instead, drivers will self-report their mileage alongside their existing Vehicle Excise Duty payments. It’s a straightforward administrative process, not an intrusive surveillance system.
Electric Car Grant Extended to 2030
In genuinely positive news, the government has committed an additional £1.3 billion to the Electric Car Grant, extending it through to 2030. This brings total funding to around £2 billion and provides much-needed certainty for those planning to make the switch.
How the Grant Works
The scheme offers discounts at the point of sale for new electric vehicles priced at £37,000 or below:
Band 1 (highest sustainability): £3,750 discount
Band 2 (meets environmental criteria): £1,500 discount
Since launching in July, the grant has already supported over 35,000 drivers in purchasing electric vehicles. Eligible models include popular choices from manufacturers such as Nissan, Ford, Citroën, and Renault, with more being added regularly.
The grant is automatically applied by dealers – you don’t need to do anything except choose an eligible vehicle. Combined with salary sacrifice savings, this can make electric vehicles remarkably affordable.
Additional Support Measures
The Budget included several other measures to support the EV transition:
The threshold for the expensive car supplement on Vehicle Excise Duty has increased from £40,000 to £50,000, saving eligible EV drivers £440 annually.
Changes to benefit-in-kind rules for Employee Car Ownership Schemes have been delayed until April 2030.
An additional £100 million is being invested in EV charging infrastructure.
The Drive35 programme has received a further £1.5 billion in funding through to 2035.
The Bigger Picture
Whilst some industry voices have expressed concern that the new charges might dampen demand, it’s worth remembering that the transition to electric vehicles is about more than just immediate running costs. Air quality improvements, reduced carbon emissions, and supporting UK manufacturing jobs in next-generation technology all factor into the equation.
The government faces a genuine challenge: as more drivers switch to electric vehicles, fuel duty receipts are projected to decline from around £25 billion today to approximately £12 billion by the 2030s, eventually approaching zero by 2050. All vehicles use the roads, and all drivers benefit from road maintenance – so it’s fair that all contribute, regardless of fuel type.
Should You Still Go Electric?
Absolutely. Even with the 2028 mileage charge factored in, electric vehicles offer:
Significantly lower running costs than petrol or diesel
Reduced maintenance requirements (no oil changes, fewer brake replacements)
Excellent tax benefits, especially through salary sacrifice
Grants of up to £3,750 towards purchase
An ever-expanding charging network
The satisfaction of driving more sustainably
The key is to look at the total cost of ownership, not just one element in isolation. When you do the maths properly, electric vehicles continue to make compelling financial sense alongside their environmental benefits.
Our Final Notes
The Budget has introduced some changes to the EV landscape, but none that fundamentally alter the attractiveness of electric vehicles. The salary sacrifice schemes remain as beneficial as ever. The running costs are still lower than those of conventional cars, and the government is backing the transition with substantial grant funding through to 2030.
If you’ve been considering making the switch, there’s never been a better time. The combination of technology improvements, expanding charging infrastructure, competitive pricing, and government support creates a perfect environment for going electric.
If you’re an electric vehicle driver who regularly travels through London’s Congestion Charge zone, there’s an important change coming that you need to know about.
From 25 December 2025, the Cleaner Vehicle Discount (CVD) will officially come to an end. This means that electric vehicles will no longer be exempt from the £15 daily Congestion Charge.
What’s Changing?
For years, EV drivers have enjoyed free access to London’s Congestion Charge zone thanks to the Cleaner Vehicle Discount. This benefit has been a significant perk for zero-emission vehicle owners, making city driving more affordable and encouraging the transition to electric.
However, Transport for London (TfL) has confirmed that this exemption will end on Christmas Day 2025. From then, all vehicles – including fully electric cars – will need to pay the standard Congestion Charge when entering the zone during charging hours.
What Does This Mean for You?
If you currently drive an EV in London, here’s what you need to prepare for:
Standard charges apply: You’ll pay the same £15 daily charge as other vehicles (or £17.50 if paying after the travel day)
No new registrations: TfL stopped accepting new CVD applications earlier this year, so if you haven’t already registered, you won’t be able to
Existing discounts expire: Even if you’re currently registered for the discount, it will end on 25 December 2025
Why Is This Happening?
The decision to remove the Cleaner Vehicle Discount reflects the growing adoption of electric vehicles across London and the UK. As more drivers switch to EVs, TfL has reviewed the exemption policy to ensure sustainable funding for London’s transport infrastructure.
Planning Ahead
While this change means an additional cost for EV drivers who regularly travel through central London, the benefits of driving electric remain strong:
Significantly lower running costs compared to petrol and diesel vehicles
Substantial savings through salary sacrifice schemes like EZOO
It’s worth noting that electric vehicles will still be exempt from ULEZ charges (because EVs are zero emissions), which cover a much larger area of London than the Congestion Charge zone.
We recently posted about whether EVs are better for the environment. Read it here >>
Make the Most of Salary Sacrifice
Even with the end of the Congestion Charge exemption, driving an electric vehicle through a salary sacrifice scheme remains one of the most cost-effective ways to get behind the wheel of a new EV. With savings of up to 60% compared to personal leasing or buying, the benefits far outweigh the additional congestion charge costs for most drivers.
At EZOO, we’re committed to making electric vehicle adoption simple and affordable for employees and businesses alike. If you have questions about how these changes might affect you, or if you’re considering making the switch to electric, get in touch with our team – we’re here to help.
Key Dates to Remember
25 December 2025: Last day of Cleaner Vehicle Discount
26 December 2025: Standard Congestion Charge applies to all vehicles, including EVs
Stay informed, plan ahead, and remember – the transition to electric is still the smartest choice for your wallet and the planet.
Salary sacrifice schemes are growing fast in the UK. The headline advantage is clear: you give up part of your gross pay in exchange for a benefit, and your taxable income goes down. But what does that mean in practice, and how does it affect tax, National Insurance, and overall earnings?
What Is Salary Sacrifice?
Simply put, a salary sacrifice scheme is an agreement between an employer and employee where you “sacrifice” a set portion of your gross pay in exchange for a non-cash benefit. Common examples include additional pension contributions, cycle-to-work schemes – or, increasingly popular, fully electric cars.
Because the deduction happens before tax and National Insurance (NI) are calculated, your gross taxable salary is reduced. This means less income tax and NI is due – making it a clever way to access perks while paying less.
How Salary Sacrifice Impacts Taxable Income
Your gross salary is the starting point for calculating income tax and NI contributions. So when that figure is reduced, everything else shifts.
For example, let’s say:
Your gross salary is £60,000
You sacrifice £6,000 per year for an EV scheme
This reduces your taxable income to £54,000. Income tax and employee NI are calculated on £54,000 instead of £60,000, meaning substantial savings for you.
Income Tax and National Insurance Savings
If you’re a higher-rate taxpayer:
Income tax is 40% on income above £50,270
Employee NI is typically 2% on income above the upper earnings threshold (and 12% below it)
By reducing taxable income by £6,000:
You save £2,400 in income tax
You save £120 in employee NI (2% of £6,000 above threshold)
Total direct savings: £2,520 per year
If you’re a basic-rate taxpayer (20%), the savings are still strong – £1,200 income tax plus £720 NI, totalling £1,920.
Employer Benefits: National Insurance and Payroll Efficiency
Employers also benefit from salary sacrifice:
They no longer pay employer NI contributions on the sacrificed amount
For £6,000 sacrificed, employer NI savings are typically 13.8% (i.e. £828 saved)
Do Salary Sacrifice Schemes Reduce Pension Contributions?
Reducing taxable income can technically reduce pension contributions – if those are tied to gross salary. However:
Many employers protect pension calculations by using notional salary or reference salary (pre‑sacrifice)
This ensures your pension contributions remain the same, regardless of the salary sacrificed.
Always check your employee benefits policy or ask your HR/payroll team to confirm how your pension is calculated.
EV Salary Sacrifice – Where Tax Efficiency Meets Sustainability
Electric car salary sacrifice schemes combine several advantages:
Significant income tax and NI savings
Very low Benefit-in-Kind (BiK) tax – just 3% in tax year 2025/26
No upfront costs, no vehicle depreciation, and insurance / maintenance included
CO₂ emissions savings and Clean Air Zone exemptions where applicable
When everything is bundled in, employees often pay significantly less than they would under a personal lease – and while also lowering personal and company carbon footprints.
Are There Limits or Disadvantages?
While salary sacrifice is beneficial, it’s not completely risk-free. Here are key considerations:
✔ Minimum Wage Compliance
Your reduced salary must still meet or exceed the national minimum wage. Employers must verify that salary after the sacrifice stays above the legal threshold.
✔ Mortgage and Lending
Since gross income is lower post‑sacrifice, lenders may view commitments less favourably – unless you can prove the reference salary is higher.
✔ Opt-Out Flexibility
Some schemes lock you in for a year or the length of a car lease. If your circumstances change – job loss, illness – you may still be liable for payments. With EZOO, there is early termination cover in case someone needs to end their lease early.
✔ Scheme Terms
Not all employers protect pensions or benefits with reference salary. Always check documentation to avoid surprises.
Tips for Employers Offering Salary Sacrifice
Clearly explain how scheme works, and illustrate savings
Use reference salary for pensions and benefits calculation
Ensure salary after deduction stays above minimum wage
Provide flexibility to opt-in/out or transfer in special circumstances
Use providers like EZOO who manage the administration and compliance end-to-end
So – does salary sacrifice reduce taxable income? Yes, decisively. By shifting part of your gross remuneration into a non-cash benefit (like a fully electric car), your taxable earnings drop, cutting your income tax and National Insurance contributions significantly.
When structured well – with protections for pensions and benefits – salary sacrifice becomes a financially smart, environmentally responsible and employee-friendly perk. Electric car schemes packaged this way offer a win-win: low-cost, brand-new EV driving, plus tax savings and sustainability credentials – all without upfront personal expenditure.
We’re investing in the next generation of talent – and we couldn’t be more excited.
As EZOO continues to grow and support more businesses and drivers in their transition to electric vehicles, we’re always looking for ways to strengthen our team. This month, we’re thrilled to welcome a new apprentice who is bringing fresh perspectives, energy, and enthusiasm to our mission.
Molly-Rose has joined our marketing team, where she’ll be working with our Director of Marketing, Victoria Steele, on creative campaigns and strategies to help more people discover the benefits of electric vehicle salary sacrifice and business subscriptions.
Having recently completed her Business studies at Leamington College, Molly-Rose developed a keen interest in marketing and is eager to put her knowledge into practice. Her role will see her collaborating across the team to come up with innovative ways to engage customers and grow EZOO’s reach.
“I’m really excited to be here and learn from such a passionate team,” says Molly-Rose. “There’s so much happening in the EV space, and I’m looking forward to being part of how EZOO tells that story.”
Apprenticeships Matter to Us
At EZOO, we believe in building for the long term – and that means investing in people. Apprenticeships give us the chance to nurture talent, share our values, and help shape the future of our industry.
We’re proud to support the next generation of professionals, and we can’t wait to see where her journey takes her.
What’s Next for EZOO?
As the UK’s electric vehicle market continues to accelerate, so do we. From expanding our team to refining our services, we’re committed to making the switch to electric as simple, affordable, and hassle-free as possible.
Whether you’re an employer looking to offer a standout employee benefit, an employee keen to drive electric without the hefty price tag, or a business owner exploring flexible EV subscriptions, EZOO is here to help.
Welcome to the team, Molly-Rose. Here’s to the exciting road ahead.
The UK’s electric vehicle landscape is experiencing a remarkable transformation.
Recent market data reveals that the newly introduced Electric Car Grant (ECG) has catalysed a 44% surge in EV enquiries, whilst the price gap between electric and petrol vehicles continues to narrow at an impressive rate.
The Numbers Tell a Compelling Story
According to the latest research from Autotrader, consumer interest in electric vehicles has jumped dramatically since the grant’s launch. More significantly, enquiries for grant-eligible models have more than doubled, demonstrating just how responsive British drivers are to meaningful financial incentives.
The affordability gap – long cited as the primary barrier to EV adoption – is closing faster than many predicted.
The average price premium for electric vehicles has fallen to just 19%, down from 29% only a year ago. This represents a significant milestone in making electric motoring accessible to more families and businesses across the UK.
Why the Shift is Happening Now
Several factors are converging to create this perfect storm of EV adoption:
Government Support: The Electric Car Grant provides discounts of up to £3,750 on qualifying models priced under £37,000, making affordable EVs more attractive without subsidising luxury vehicles.
Manufacturer Response: Car makers have been quick to adjust their pricing strategies to meet the grant eligibility criteria, creating even more options for consumers in the accessible price bracket.
Market Maturity: Used EV prices have stabilised after previous volatility, whilst electric models have remained the fastest-selling fuel type for three consecutive months, averaging just 27 days from listing to sale.
Beyond the Showroom: The Broader Impact
The grant’s influence extends beyond individual car buyers. Industry analysts suggest the scheme is reshaping how manufacturers approach the UK market, with many adjusting their model line-ups and pricing strategies to ensure eligibility.
Used EV enquiries have also benefited from the renewed interest, with one in six used car enquiries now relating to electric vehicles – a dramatic increase from just 2% in 2020. This suggests the grant is having a “halo effect” across the entire electric vehicle market, not just new cars.
Infrastructure Keeps Pace
One concern that’s rapidly becoming outdated is “range anxiety“. The UK now boasts over 85,000 public charging points, with a new charger being added approximately every 31 minutes. This expanding infrastructure, combined with improving battery technology, means electric vehicles are increasingly practical for drivers across all regions.
What This Means for UK Drivers
The convergence of government support, competitive pricing, and robust infrastructure is creating ideal conditions for electric vehicle adoption.
For consumers who have been sitting on the fence, the combination of reduced upfront costs and lower running expenses – EV drivers can save up to £1,500 annually on fuel and running costs compared to petrol vehicles – makes the switch increasingly attractive.
For businesses, the current environment presents opportunities to support employees interested in electric vehicles, whether through salary sacrifice schemes, company car policies, or simply providing workplace charging facilities.
The data suggests we’re witnessing a genuine turning point in the UK’s automotive market. Electric vehicles are no longer a future aspiration – they’re becoming the practical choice for growing numbers of British drivers.
