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EV Salary Sacrifice for Businesses

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Give your team a benefit they genuinely value while reducing costs and strengthening your sustainability goals.

With DriveElectric’s EV Salary Sacrifice scheme, you team can drive brand-new or used electric cars for far less, and your business cuts National Insurance Contributions (NIC), boosts employee retention, and enhances the value of your employee benefits.

Simple to launch. Zero cost to set up. Minimal admin.
Maximum impact.

Why choose Salary Sacrifice for electric vehicles?

There are plenty of great reasons to introduce an EV Salary Sacrifice scheme to your business.

Here are some highlights…

Save up to 40% on a new electric car with DriveElectric

Save your business money from day one
Cut employer National Insurance Contributions (NIC) and offer a high-value benefit at zero cost to your business. Salary Sacrifice delivers immediate financial savings for both employers and employees.

Simple to launch and low admin to run
The scheme is HMRC-approved, payroll-friendly, and fully supported by DriveElectric’s online portal and expert team. It is one of the easiest employee benefits to put in place.

Boost recruitment, retention and overall benefits value
EV Salary Sacrifice strengthens your ability to attract and retain talent with a valuable, high-impact addition to your benefits package.

A powerful employee benefit that pays for itself
Employees save on Income Tax and National Insurance, making an electric car significantly cheaper than a private lease.

Support your sustainability goals
Reduce your company’s carbon footprint and support your transition to electric vehicles.

How EV Salary Sacrifice works

It's straightforward:

The package is all-inclusive, covering servicing, maintenance, tyres, breakdown assistance, glass, Road Fund Licence, and insurance on Plus & Complete packages. There are no deposits, no credit checks, and no long waits on many in-stock vehicles.

How it works

  • Employees choose an electric car (new or used)

  • A fixed monthly cost is deducted from their gross salary

  • They save thanks to reduced Income Tax and NICs

  • You save through lower employer NIC contributions

Why it matters

  •  Employees can save thousands

  •  Employers reduce NIC bills

  • Everyone benefits from a smooth, fully supported EV experience

Huge savings for employees and employers

Salary Sacrifice delivers ROI from day one
Both employees and employers benefit immediately, making EV Salary Sacrifice one of the most cost-effective benefits you can offer

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Big savings for your business
Lower employer NIC contributions mean your business saves every time someone joins the scheme

Employees can save up to 40%
EV Salary Sacrifice reduces Income Tax and National Insurance, making an electric car much cheaper than a private lease

We're trusted by

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Norton Motorcycles Logo

We’ve been using DriveElectric for many years, for both business contract hire and more recently for Salary Sacrifice for pure electric vehicles. DriveElectric’s unique scheme has enabled us to offer our team a compelling benefit with access to hundreds of electric vehicles, whilst there has been very little admin or risk to Fully Charged

Robert Llewellyn / Fully Charged Show

As a member of the leadership team at Norton, I feel that I’m playing my part in developing our people and this iconic brand. Motorcycles already represent a sustainable way of getting around but giving our ‘Nortoneers’ the option to take an electric car via Salary Sacrifice amplifies our collective contribution to a decreased carbon footprint and is a lovely additional perk we’re offering to our enthusiastic team

Rob Ridgeway / Norton Motorcycles

DriveElectric have supported us with every step in the introduction of our EV Salary Sacrifice scheme. Initially we had thought only a few Managers would wish to benefit from the scheme. 12 months on and we have a total of 9 employees with electric cars and 2 more on order. The benefits of this scheme have proven great for employee retention A huge thanks to the team at DriveElectric

Kate Minion / Yorkshire Wildlife Park

Contact us today to get the wheels spinning

Keen to drive your new electric car Salary Sacrifice scheme forward? You’re at the right destination. Simply fill in our form and our friendly team of experts will be able to talk you through the next steps.

Pod point Solo 3 Charger

Additional perks for your team

  • Professionally installed Pod Point home charger for as little as £21* per month. Theirs to keep at the end of the contract
  • Pod Point exclusive residential EV tariff with EDF**, with an overnight rate of 8p per kWh. Save 75% compared to a standard tariff

Salary Sacrifice benefits for employers

As a business leader, you not only want the best for your company and your workers now - but you also want to make greener changes to drive long term success. As pioneers in the electric vehicle industry, we strive to deliver exactly that. You can join thousands of trusted DriveElectric customers across the UK in taking your first steps towards Net Zero thanks to our highly-rated Salary Sacrifice car scheme.

  • Reduce CO2 emissions and become a green employer - In the race to Net Zero, every business needs to reassess its carbon footprint in order to make that crucial change. Opting for an electric car salary sacrifice scheme is a simple and accessible way to help get you there, fast.

  • Become the new talent ideal - A positive work culture with great perks are the green flag new talent is on the lookout for. When you give employees what they really want, they’ll not only be more likely to join your team - but also maintain their positions for much longer.

  • Make significant tax and insurance savings - Thanks to the Benefit-in-Kind rates, your employees can enjoy up to 30-60% savings on a new EV. What’s more, deploying an electric vehicle salary sacrifice scheme throughout your company means you can have total reassurance that the rates won’t rise above 5% for the next five years.

  • Enable workers to maximise their salary - Our green salary sacrifice car scheme enables you to take care of your workers efficiently, helping them to boost their budget all while giving them the opportunity to drive a brand new EV.

  • Fuss-free admin and management - We like to keep things simple here at DriveElectric. With our EV hub, you can manage all your EV salary sacrifice leases in one online portal - so you can spend less time making sense of spreadsheets and more time achieving your goals.

  • Unique, tailor-made solutions - Every company is different, so your electric car salary sacrifice scheme should reflect that. Our personable approach to consulting means our experts will take into account your individual needs, resulting in a seamless solution that’s perfect for you.

  • Help with HR, policy and tax - Our friendly team of highly-skilled advisors are always at hand to offer help with any questions you may have about HR, policy or tax. Consider it covered.

  • Support from the original electric vehicle specialists - The DriveElectric service goes way beyond the initial consultations and legal advice. The road to Net Zero is a journey, and the final rollout is just the beginning. We’re with you for the long haul - ensuring your EV experience is as smooth and effective as possible.

  • Home, public and workplace charging expertise - Worried about charging logistics, or unsure of how to implement a truly green charging system? As industry-leading experts with over 15 years of experience, you can trust we’ll be able to advise on all your charging queries for maximum cost and carbon savings.

Support that makes it easy

DriveElectric does the heavy lifting, keeping the process straightforward for your business.

You get:

  • A dedicated account manager
  • Employee launch webinars (including EV myth-busting)
  • Tailored comms tools and engagement campaigns
  • Employee surveys and onboarding support
  • Expert guidance and ongoing scheme optimisation

Ready to launch your EV Salary Sacrifice scheme?

Boost your benefits package. Reduce fleet emissions. Save your business and your people money.
Start your EV Salary Sacrifice journey today.

Call us on 01628 899727 (Mon-Fri 08.30 to 5pm)

EV Salary Sacrifice FAQ

Simply put, the electric car Salary Sacrifice is a scheme that employers can implement within their company. It allows eligible employees to sacrifice some of their salary to pay for the lease of a brand-new electric vehicle. We like to think of it more as a benefits scheme than a sacrifice - as both the employer and employees have so much to gain.

The process couldn’t be simpler. Employers just need to sign up to the scheme, and then eligible employees can choose an electric car to lease - with absolutely no upfront cost. They can then expect big tax and national insurance savings to be made. It’s a no brainer. It's up to the employer who qualifies for the scheme within their business.

Thanks to the extremely low Benefit-in-Kind tax rates set by the UK Government, employees can be rest assured they won’t surpass 5% until at least 2028. This makes all EVs extremely attractive compared to petrol and diesel vehicles which attract a significantly high benefit-in-kind tax rate. Savings vary depending on the choice of EV and the income tax bracket of the employee but savings can be in the 20% to 60% range.

Absolutely! The benefits of a Salary Sacrifice car scheme are extensive - all of which apply to you (the employer), your employees and of course, the environment. It’s a scheme created specifically to put our people and planet first. If you want to find out more about how it can help your business thrive, our friendly team can happily advise you on the next steps.

It is all to do with the Benefit-in-Kind tax rate set by the Government on electric vehicles. For several years the BIK rate has been ultra-low and it will stay incredibly low compared to petrol/diesel vehicles until at least 2028. As a comparison an EV attracts a BIK of 2% while a petrol vehicle could be 25% or more. This means it costs the employee just a few pounds a month in BIK, whereas it might be hundreds of pounds for an ICE powered car. Read our guide

We’d struggle to tell you of any disadvantages as such, but we do know it’s a concern for employers if the scheme doesn’t quite take off as they’d hoped. But don’t worry - we have a Driver-Centric approach that ensures employees feel truly inspired to try an electric car. Trust us, once the EV switch is made, they won’t want to go back.

Have you onboarded already?

For more details about your specific employee Salary Sacrifice car scheme and how to browse, order your electric car - login to the Car Reward Portal.

You can also check out our Salary Sacrifice employee FAQs, or email us at reward@drive-electric.co.uk for more information.

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Important information

* Pod Point home charger plus installation from £14 per month is based on 40% tax payer (after sacrifice), 36-month agreement.

** Available EDF EV energy tariff for residential customers when purchasing an eligible Pod Point home charger.

^ Free energy miles offer only available when taking a salary sacrifice lease from DriveElectric and being an EDF residential customer (existing and new)