Call us on 01628 899727

EV Salary Sacrifice for Businesses

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.

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.

Log in

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 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.

Talk to a Salary Sacrifice expert

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

Salary Sacrifice scheme employer guide image tile

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:

Fully Charged Show

“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

Norton Motorcycles

“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

Yorkshire Wildlife Park

“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

 

What's included in the package? 

No hidden costs. No unexpected bills. Just predictable budgeting and complete peace of mind.

One fixed monthly payment includes: 

  • All servicing and routine maintenance¹

  • Tyres for fair wear and tear

  • Breakdown and roadside assistance

  • Windscreen and glass cover

  • Road Fund Licence

  • Optional fully comprehensive insurance² (Plus & Complete packages)

  • Early Termination Protection (Complete package only)

1. Not covered by the manufacturer’s warranty and subject to fair wear and tear.
2. Subject to eligibility criteria, terms and conditions.

 

Compare our packages

We've made it easy to choose the right Salary Sacrifice scheme. Compare our two levels of cover to see which one suits you best.

1. Terms, conditions and exclusions apply. Read your agreement carefully before signing.
2. Not covered by the manufacturer’s warranty and subject to fair wear and tear.
3. Insurance is subject to eligibility criteria, terms and conditions, and exclusions.

Early Termination Protection

Extra reassurance for you and your employees

Circumstances change. Employees may move roles, take parental leave, or experience unexpected events. Early Termination Protection reduces or removes early termination charges in many of the most common situations after the first three months.

Why it matters:

For employees

  • Confidence to join the scheme

  • Protection during life events

  • Makes the scheme more accessible

For employers

  • Reduces financial risk

  • Keeps the scheme smooth and predictable

  • Supports responsible HR practice

This added protection helps employers manage risk and run the scheme with confidence.

Used Electric Cars. Same Confidence. Lower Cost.

Give your employees even better value with DriveElectric’s expertly refurbished used EVs:

  • Lower rentals
  • More car for the same budget
  • Zero long lead times 
  • Fully maintaines, inspeacted and road-ready

Used EV Salary Sacrifice is one of the fastest ways to boost adoption and maximise savings across your business.

 

 

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) 

Get in touch

EV Salary Sacrifice FAQ

Are electric car Salary Sacrifice schemes worth it?

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.

How does a Salary Sacrifice car scheme work for employers?

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.

How much can an employee save using Salary Sacrifice to drive an EV?

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.

What are the disadvantages of a Salary Sacrifice car scheme in the UK?

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.

What is a HMRC Salary Sacrifice scheme for electric cars?

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.

Why is an EV Salary Sacrifice scheme so attractive?

One of the biggest benefits of an electric car salary sacrifice scheme is the low Benefit-in-Kind (BiK) tax on EVs. Fully electric cars attract a BiK rate of just 4% in 2026/27, increasing gradually over the coming years, while many petrol and diesel vehicles are taxed at 25% to 39%. As a result, employees can often enjoy substantial savings and drive a new electric car for far less than a comparable petrol or diesel model. Read our guide

We're trusted by

Case Studies

We work in partnership with our fleet customers to keep their environmental and financial costs as low as possible