The Best EV Salary Sacrifice Schemes November 2023

The best EV salary sacrifice schemes provide a win-win tax solution for both employers and employees. Through this arrangement, an employee agrees to sacrifice a portion of their salary in exchange for the non-cash benefit of driving an electric car.

Our best EV salary sacrifice schemes in 2023 were selected based on feedback from Electric Car Guides focus group, from real-world reviews and an assessment of each provider’s performance for the following criteria: electric vehicle fleet range, EV inclusive services, EV lease duration, mileage limits, EV charger offers or benefits, early termination protection policy and customer support.

We have done the groundwork for you by comparing the pros, cons and product features of every available EV salary sacrifice scheme in 2023 in order to shortlist only the providers who offer the very best EV salary sacrifice scheme.

Provider	Editors Salary Sacrifice Picks	Check Deals	Check Deals
BEST OVERALL SCHEME	Octopus EV Free home charger 4000 Free miles of charging EV Energy Tariff  Public charging via Octopus Electroverse	10	CHECK ELIGIBILITY
TOP EARLY TERMINATION	Loveelectric Generous early termination protection Access to new and used EVs Ethical ‘Bcorp’ business Option to include car insurance	10	CHECK ELIGIBILITY

The best EV salary sacrifice schemes 2023

The best EV salary sacrifice schemes were chosen because they offer the best range of electric cars, comprehensive services, contract flexibility, customer early termination protection and solid customer support:

Octopus Electric Vehicles Salary Sacrifice

Best for: Free charging & EV tariff bundle
Full Review: Octopus Electric Vehicles

Octopus Electric Vehicles

• Free Home Charger & 4000 Free Miles
  Octopus offers a free home charger with standard installation & 4,000 free miles of home charging on Intelligent Octopus
  
  
• 4000 Free Miles of Public Charging
  No off-street parking? Then Octopus offer 4,000 free miles on their Electroverse charging network
  
  
• Breakdown Cover and Maintenance included, plus replacement tyres every 20,000 miles
  
  

Check Eligibility

Octopus Electric Vehicles provides an all-encompassing, user-friendly solution for those considering an EV salary sacrifice scheme, with impressive perks and an emphasis on ease and convenience.

The package is impressively holistic, including a brand-new electric vehicle, home charger, energy, insurance, servicing, maintenance, EV breakdown cover, and tyres – truly the whole lot.

In addition, they offer 4,000 free miles of home charging with Intelligent Octopus.

Their package comes with comprehensive insurance and AA breakdown cover. The scheme promises an easy set-up process and quick implementation – you could be on the road in as little as two weeks.

Love Electric Salary Sacrifice

Best for: Cheap Home Charger Bundle
Full Review: Loveelectric Salary Sacrifice

Loveelectric Salary Sacrifice

• Cost-neutral to businesses: fees are deducted from employees' NIC savings
  
  
• Early Termination Protection: 1 month fee payable if circumstances change
  
  
• Access to every EV on the market
  
  
• Maintenance, breakdown, glass, tyres and servicing included
  
  
• Fully comprehensive car insurance can be added with the flick of a switch at checkout

Check Eligibility

Loveelectric promises no hidden charges or artificially low monthly fees tied to hefty deposits, making their pricing approach clear and straightforward.

LoveElectric commits 10% of its profits to charity, so you can contribute to a good cause while benefiting from a Salary Sacrifice. If you add a home charger to the order you only pay £500, that’s 50% off the current retail price.

LoveElectric’s salary sacrifice scheme offers an appealing mix of price transparency, cost-effectiveness, and corporate responsibility. They have access to every single EV on the market and a strong early termination protection of just 1 month’s cost, demonstrating their position as an ethical Bcorp business.

elmo Salary Sacrifice

Best for: Best all-inclusive Subscription
Full Review: elmo Car Subscription

elmo Car Subscription

• All-inclusive service: Insurance, Maintenance, Breakdown Cover, Service & MOT included
  
  
• Flexible monthly contracts:
  elmoFlex: 30 days notice after month 1
  elmoSave: 30 days notice after month 11
  
  
• Mileage allowance: 800 miles per month
  
  
• No deposit needed
  
  
• Salary sacrifice is available and fully managed by elmo

Check Eligibility

elmo offers a fully-managed salary sacrifice scheme for electric cars on subscription.

There’s no deposit, swift delivery and setup, and an all-inclusive package that leaves no stone unturned. elmo’s package includes an electric car with a generous allowance of 800 miles per month, comprehensive insurance coverage, and scheduled maintenance and servicing.

24/7 roadside assistance is included. The inclusion of driver safety telematics is a thoughtful addition that not only improves EV safety but could also help lower EV insurance costs in the long term.

elmo’s scheme also considers wear and tear on the EV tyres, a crucial factor in maintaining vehicle safety and performance.

For those seeking extra mileage or wishing to add up to two additional drivers, elmo provides the flexibility to adapt the package to your needs. A range of charging options is also available to suit different home setups and lifestyles.

Tusker Salary Sacrifice

Best for: Best Dedicated Business Support Team
Full Review: Tusker Salary Sacrifice Scheme

Tusker

• Access to every EV model in the UK
  
  
• Market-leading Early Termination Protection
  
  
• Includes insurance, breakdown cover, maintenance & tyres
  
  
• Dedicated comms expert provided to support roll-out

Check Eligibility

Tusker, a carbon-neutral company with over 15 years of experience in providing company cars, offers an award-winning salary sacrifice car scheme that has become widely popular in both the public and private sectors.

Tusker’s scheme allows employees to drive a brand-new, fully insured and maintained car. Offering a hassle-free solution, the comprehensive package includes fully comprehensive motor insurance, breakdown cover, and routine maintenance for complete peace of mind.

You are also spoilt for choice with access to any make or model, ensuring you can find a car that best suits your needs.

The scheme offers a high degree of customisation. You can personalise your new car right down to the colour, trim, interior and additional features, making your car truly yours.

SalSac Salary Sacrifice

Best for: End-to-end service
Full Review: Salsac Salary Sacrifice

SalSac Salary Sacrifice

• Cost neutral: Fees come from NIC & tax savings 
  
  
• Home chargers included: Add the cost of a home charger to the salary sacrifice
  
  
• Access to every EV on the market 
  
  
• Maintenance, breakdown cover, insurance & delivery fees included
  
  
• 10,000 miles per year as standard

Check Eligibility

SalSac Salary Sacrifice offers a comprehensive and easy-to-implement salary sacrifice scheme with contract lengths ranging from 24 to 48 months.

SalSac’s provides businesses with a full-service offering, taking care of everything from finding the perfect car for employees to supporting your accounts department with salary deduction calculations and P11d reporting.

Their partnership with Mr Charger, a dedicated EV Charging installation company, provides the option to include the cost of a home charger and its installation in the monthly salary deduction.

Fleet Evolution Salary Sacrifice

Best for: Early Termination Protection
Full Review: Fleet Evolution Salary Sacrifice

Fleet Evolution Salary Sacrifice

• Early Termination Protection
  Leaver protection from day 1
  
  
• The 'Electric Flex' option lets you swap to a
  petrol car for specific occasions if necessary
  
  
• Free Workplace Charger
  When 5 or more staff take out a Salary Sacrifice EV

Check Eligibility

Fleet Evolution offer a comprehensive service that includes drafting contract variations, ensuring HMRC compliance, and managing direct recharges to the employee. They also offer dedicated support teams for both parties to ensure that all questions are answered and issues are swiftly resolved.

Fleet Evolution provides strong leaver protection. This straightforward policy is effective from the first day of the contract, eliminating hidden complications or penalties for employees who may need to leave the scheme. They offer a free charging point installation to businesses where five or more employees decide to lease electric cars through the salary sacrifice scheme.

Hippo Leasing Salary Sacrifice

Best for: Bad Credit
Full Review: Hippo Car Leasing

Hippo Car Leasing

• Bad Credit Specialist
  With a soft credit check that won't impact your credit rating
  
  
• Access to over 650 EVs
  
  
• Nothing to pay for the first 30 days
  
  
• 72-hour delivery time
  
  
• Salary Sacrifice available
  
  

Check Eligibility

Hippo Leasing believes in ‘helping those others won’t’, as they cater to those with bad credit by offering viable leasing deals, ensuring access to an electric vehicle is not hindered by bad credit history.

They offer competitive leasing deals, even without a deposit. This is enabled through partnerships with diverse lenders offering market-leading rates.

Hippo has an eligibility checker, providing the ability to check the acceptance likelihood before application, with results delivered swiftly within 30 minutes.

The availability of tailored packages enables you to pick your contract type, length, deposit, and mileage, providing flexibility to fit individual preferences.

Hippo Leasing provides a 14-day money-back guarantee, giving leasers extra peace of mind.

Go Green Salary Sacrifice

Best for: Business Insurance add-on
Full Review: Go Green Leasing

Go Green Leasing
Salary Sacrifice Offer Includes:

• Comprehensive Breakdown Cover
  
  
• Fully comprehensive ‘Business’ Insurance
  fixed for 3 years (regardless of claims)
  
  
• MOT, servicing & tyre cover
  
  
• Additional 2 named drivers allowed (min 18 years)

Check Eligibility

Go Green delivers a comprehensive package for those considering electric or hybrid vehicles.

With Go Green, customers can enjoy a wide range of benefits including a brand-new car every 2 or 3 years. All servicing and repairs are included in the package, offering customers peace of mind and ease of maintenance.

For those who worry about tyre damage, Go Green provides unlimited tyre replacement/repair service, even for accidental damage.

Additional benefits include comprehensive breakdown cover, no deposit required with a fixed budget monthly rental, fully managed assistance, and no credit checks. 

They also offer fully comprehensive ‘Business’ Insurance fixed for 3 years, regardless of claims, road tax coverage for the entire contract, and allowance for additional 2 named drivers (min 18 years).

The Electric Car Scheme Salary Sacrifice

Best for: Startups
Full Review: The Electric Car Scheme

The Electric Car Scheme

• All-Inclusive package: any brand, every model,
  best prices
  
  
• Includes maintenance,
  tyre replacement, MOT,
  breakdown cover & insurance
  
  
• Home charger installed by Smart
  Home Charge
  
  
• Flexible contracts:
  Subscription cars
  available for 1 year

Check Eligibility

The Electric Car Scheme offers a competitive and appealing salary sacrifice package for EVs, focused on delivering value, simplicity, personalised support, and risk protection.

In terms of value, the scheme works with a broad range of car lease companies, ensuring customers get the best lease deal available for each car. There are no hidden fees in the monthly lease cost, making it a truly cost-effective choice.

They provide support with monthly payroll instructions, ensure HMRC compliance, and handle tax reporting, effectively relieving customers of these burdens.

The Electric Car Scheme also offers market-leading risk protection. It includes safeguards against early termination fees, providing coverage for a variety of situations that may necessitate the early return of a vehicle. This makes it particularly appealing to customers seeking security and flexibility.

LeasePlan Salary Sacrifice

Best for: Large Enterprises
Full Review: LeasePlan Car Leasing

LeasePlan

• Huge range of over 600 EVs
  
  
• Tailored contracts & mileage
  
  
• Monthly costs can include maintenance & tyres
  
  
• Salary Sacrifice Available
  For businesses with over 1,000 employees

Check Eligibility

LeasePlan’s salary sacrifice scheme has been in operation since 2010, they are a globally recognised leasing company, boasting a large fleet of 1.9 million vehicles across 29 countries. With a legacy of over 50 years in the industry, they offer an experienced and trusted service for corporate clients, public sector entities, SMEs, and individual consumers.

LeasePlan targets companies with over 1,000 employees, assisting them in going green.

Collaborating with all the leading electric vehicle manufacturers, they ensure that employees have a wide array of options to choose from.

The company manages the entire life cycle of their vehicles, taking care of everything from purchasing to maintenance and even reselling of former lease vehicles. This comprehensive service allows clients to focus on ‘what’s next’, alleviating the administrative burden of managing a vehicle fleet.

Novuna Vehicle Solutions Salary Sacrifice

Best for: Comprehensive EV Information Hub
Full Review: Novuna Vehicle Solutions

Novuna Vehicle Solutions

• Provide all vehicle asset types
  EVs, Vans, HGVs, Specialist, Plant
  
  
• Charge Points Included
  Novuna provides charger installation and management
  
  
• Salary Sacrifice Option
  Salary Sacrifice includes Maintenance, Insurance & Home Charger

Check Eligibility

Novuna, an award-winning leasing and fleet service provider, offer a robust salary sacrifice scheme for large businesses with over 1,500 employees.

The package includes charging options for both workplaces and for an employee’s home. In addition to the vehicle and charger, Novuna’s salary sacrifice package includes breakdown cover, essential maintenance and insurance for up to 3 named drivers.

Novuna provides an ‘EV Hub’ – a comprehensive resource answering many questions an employee might have about transitioning to an EV. The EV Hub also showcases available vehicles based on various parameters such as price, range, charging speed, and even boot space, enabling users to make informed decisions based on their individual needs.

GridServe Salary Sacrifice

Best for: All-inclusive charging with the Net Zero bundle
Full Review: Gridserve EV Leasing

GRIDSERVE EV Leasing

• Three Months Free Charging
  On the GRIDSERVE Electric Highway
  
  
• GRIDSERVE plant 100 trees for each lease
  
  
• Salary Sacrifice Available
  Salary Sacrifice includes Breakdown Cover, Maintenance, Insurance & MOT

Check Eligibility

With Gridserve, all of the administrative aspects of owning a vehicle are taken care of. This includes maintenance, insurance, and even breakdown cover. All cars leased under the scheme are brand new and come with a manufacturer’s warranty.

Servicing is also included for the duration of the agreement, providing peace of mind and convenience.

The scheme includes a fixed, low monthly payment for the duration of the 2, 3, or 4-year agreement, making it easier to budget and plan finances.

Alongside this, Gridserve offers three months of free charging at any of its 180+ public charging sites on the GRIDSERVE Electric Highway, which is included with every new lease. You can even bundle in all-inclusive charging with the Net Zero leasing plan.

Additionally, for those with off-street parking, Gridserve offers assistance in choosing and installing a home charger.

Zenith Salary Sacrifice

Best for: Customer satisfaction score

Zenith Salary Sacrifice

• All-Inclusive package
  Includes: Car, Insurance, Maintenance,
  Breakdown cover, Tyres & Glass
  
  
• 10 years of experience providing Salary Sacrifice schemes
  
  
• 99% customer satisfaction score
  
  

Check Eligibility

Zenith is the parent company of Zen Auto. Zenith is the side of the business that deals with Salary Sacrifice schemes and Zen Auto is just for retail customers, not businesses.

Zenith takes pride in its all-inclusive package which is the result of over a decade’s worth of experience in providing salary sacrifice schemes, setting them apart from newer entrants in the market.

Their average implementation satisfaction score of 99% speaks volumes about the quality and reliability of their service.

Zenith’s salary sacrifice scheme ensures users receive a brand-new car and benefit from a range of comprehensive services. Scheduled servicing and maintenance, EV breakdown cover, and replacement EV tyres are all part of the offering, ensuring that the vehicle remains in optimal condition throughout the lease term.

Zenith also provides a windscreen and glass cover, an often overlooked but crucial aspect of car maintenance and safety.

WeVee Salary Sacrifice

Best for: Quick application turnaround

WeVee is a one-stop platform offering every electric car available in the UK market, saving customers the hassle of scouring various websites.

Through strategic partnerships with manufacturers, dealers, and leading UK lenders, WeVee ensures access to exclusive EV stock and pricing, making the customers needs a priority.

Their real-time inventory system provides an immediate overview of dealer inventory across the UK, ensuring swift car finding and availability.

Comprised of passionate EV enthusiasts, WeVee’s team offers expert advice, helping customers understand features, and specifications, and even assisting with finding the nearest charging points.

WeVee also offers an end-to-end service, handling all the mundane aspects from initial enquiry to delivery. They manage paperwork, car configuration, charging account setup, and even assist with home charger installation.

There’s no requirement for a personal credit check and the scheme includes maintenance and insurance.

How does an EV salary sacrifice work?

Here’s a step-by-step walkthrough of how a salary sacrifice scheme works for electric cars:

1. Agreement between Employer and Employee
   The process starts with an agreement. The employer proposes the benefit, of an electric car, and the employee consents in writing to a decrease in their gross salary for this benefit.
   
   
2. Salary Reduction
   The portion of the salary that is ‘sacrificed’ is decided based on the cost of the benefit. In the case of an electric car, this would typically equate to the lease or subscription payment for the car. This amount is deducted from the employee’s gross salary.
   
   
3. Provision of the Benefit
   In exchange for this salary sacrifice, the employer provides the agreed-upon benefit, i.e., the EV. The employee does not incur any additional charges for the use of the car, apart from the agreed salary sacrifice.
   
   
4. Tax and National Insurance Contributions Reduction
   As the sacrifice is made from the gross salary, it reduces the employee’s taxable income. This results in lower income tax and National Insurance Contributions (NICs) payments. The employer also benefits from reduced NICs.
   
   
5. Completion of the Lease or Termination of Employment
   The agreement usually lasts for the duration of the electric car lease or subscription, typically between two to four years for a lease agreement. EV subscription services are typically more flexible and can be cancelled at a month’s notice, but generally come at a higher cost. Should the employee leave the company before the end of the lease, a termination fee might apply.

In the UK, electric cars provided under a salary sacrifice scheme are subject to a Benefit-in-Kind (BiK) tax rate of 2%

Remember that participating in a salary sacrifice scheme will lower your overall cash earnings. This can affect calculations based on your salary, such as pension contributions or mortgage applications. It’s wise to consider these implications and, if needed, seek financial advice before deciding on a salary sacrifice scheme.

What are the benefits of an EV salary sacrifice?

The main benefits of salary sacrifice schemes are tax savings, but there are other benefits related to the nature of electric vehicles and the all-inclusive perks often included in these schemes:

• Lower Personal Tax and National Insurance Contributions
  The primary advantage of a salary sacrifice scheme is the potential for lower personal tax and National Insurance Contributions. By reducing your gross salary, you’re lowering your taxable income.
  
  
• Benefit-in-Kind Rates
  EVs attract a low Benefit-in-Kind (BiK) rate in the UK – currently at 2%. This is considerably lower than the BiK rates applied to most other company car benefits, making EVs a particularly attractive option from a tax perspective.
  
  
• Access to Higher Value Vehicles
  Depending on the terms of the scheme, you could potentially have access to electric vehicles that may have been out of your budget if you were to lease or buy them outright.
  
  
• All-Inclusive Perks
  When you lease or subscribe to an EV via a salary sacrifice scheme you tend to bundle various perks along with the vehicle. This can include maintenance costs, EV breakdown cover, EV charging, and even insurance, offering potential savings and simplifying your budgeting. Always make sure to check exactly what’s included in your scheme, as this can vary.

What are the negatives of an EV salary sacrifice?

As with any financial decision, it’s vital to consider all aspects of a salary sacrifice scheme before diving in, including the potential negatives:

• Cash earnings are reduced
  If you join a salary sacrifice scheme your overall cash earnings will be lower.
  
  This can affect calculations based on your salary, for instance, pension contributions from both you and your employer are usually a percentage of your salary. A lower salary could mean lower pension contributions, potentially impacting your pension pot in the long run. This could be particularly significant if you’re close to retirement.
  
  Statutory benefits like Statutory Maternity Pay, Statutory Sick Pay, and redundancy payments, which are calculated based on your average earnings, might also be affected.
  
  This can affect calculations based on your salary, such as pension contributions or statutory benefits. It’s wise to consider these implications and, if needed, seek financial advice before deciding on a salary sacrifice scheme.
  
  
• Early Termination Costs
  If, for any reason, you need to exit the scheme early – for instance, if you leave your job, are made redundant, or simply wish to end the agreement – there may be costs involved. You need to understand those costs before entering into an agreement.

If you want to explore the advantages and disadvantages of the schemes further, check out our complete guide to the pros and cons of EV salary sacrifice schemes.

Is an EV salary sacrifice scheme worth it?

Having looked at the pros and cons above, the question of is an EV salary sacrifice worth it really comes down to personal circumstances and priorities.

These schemes offer significant income tax and NIC savings. The low Benefit-in-Kind (BiK) rate applied to EVs makes them an attractive option from a tax perspective.

However, these advantages must be weighed against the potential downsides. The fact that the salary sacrifice scheme lowers your overall cash earnings can impact other aspects of your financial life.

To work out if an EV sacrifice scheme is worth it depends on your own circumstances. Take a long-term assessment of your finances before rushing in. It’s also worth taking professional tax advice, understanding the full picture is key to deciding whether it’s the right move for you.

What is the maximum salary sacrifice in the UK?

In the UK, there isn’t a set maximum limit on how much of your salary you can sacrifice for benefits. The amount you can sacrifice theoretically could be up to 100% of your salary, but in practice, this wouldn’t work due to various restrictions.

Any salary sacrifice arrangement must not drop your pay below the National Minimum Wage or the National Living Wage, as applicable. Sacrificing too much of your salary can also impact your pension contributions, as these are based on your salary after the sacrifice.

The final word on the best EV salary sacrifice schemes

The best EV salary sacrifice schemes present an appealing option for many employees and employers in the UK. After extensive research and analysis, we’ve shortlisted the best EV salary sacrifice providers for 2023.

These companies were selected based on tangible, value-driven criteria. Our selection process involved feedback from Electric Car Guides focus group, sifting through genuine real-world reviews, and closely assessing the performance of each provider against a set benchmark.

The criteria that our contenders excelled in included:

• Electric vehicle fleet range
• Affordability of lease or subscription
• Comprehensive EV-inclusive services
• Flexible EV lease durations
• Reasonable mileage limits
• Attractive EV charger offers or benefits
• Solid early termination protection policies
• Exceptional customer support

Based on our criteria, the companies that have risen to the top of the salary sacrifice providers in 2023 are:

• Octopus EV
• Love Electric
• elmo
• Tusker
• SalSac
• Fleet Evolution
• Hippo Leasing
• Go Green
• The Electric Car Scheme
• LeasePlan
• Novuna Vehicle Solutions
• GRIDSERVE
• Zenith
• WeVee

These companies stand out as the best salary sacrifice providers because they set the benchmarks in the EV salary sacrifice industry. They feature a diverse range of electric vehicles, competitive pricing, commitment to customer satisfaction, flexible lease durations and generous early termination policies.

Help if you’re struggling with debt from car subscriptions or leases

Late payments on car subscriptions or leases can lead to financial difficulties. If you find yourself struggling with debt from car subscriptions or leases, it is essential to seek professional guidance. Several debt advice services can help:

• StepChange: StepChange offers debt management plans tailored to your situation
• Citizens Advice: Offering free and confidential advice on managing debts.
• National Debtline: National Debtline is a helpline specifically designed to assist with personal debt, including car subscription or lease obligations.
• MoneyHelper (formerly The Money Advice Service): Providing tools and support to help you understand your options and make informed decisions.

Remember, the terms of car subscriptions and leases can vary significantly, so it’s important to read and understand your specific agreements and obligations.

Our Best Salary Sacrifice review methodology

At Electric Car Guide, we reviewed the whole of the UK salary sacrifice market. The reviews were conducted with impartiality and an in-depth understanding of what electric car users value. Here’s how we formulated our evaluation:

1. Customer Feedback from Electric Car Guide: We surveyed users from our own website in our EV focus group. These insights offered us a firsthand view of real-world experiences and salary sacrifice expectations, allowing us to frame our review around actual user needs and preferences.
   
   
2. Trustpilot Reviews: We took into account both positive and negative reviews from Trustpilot. This provided a balanced perspective, acknowledging the praises and criticisms our salary sacrifice providers have received from a diverse range of customers.
   
   
3. Comparison with Competitors: We compared the salary sacrifice features, pros, cons, and customer experience against their nearest competitors in the UK market. This enabled us to gauge each provider’s standing in the industry, highlighting its strengths and areas for improvement.

John Ellmore

John is the Editor and Spokesperson for Electric Car Guide.

With over 20 years of writing experience, he has written for titles such as City AM, FE News and NerdWallet.com, covering various automotive and personal finance topics.

John’s market commentary has been covered by the likes of The Express, The Independent, Yahoo Finance and The Evening Standard.

Mark Tubby

Mark Tubby is a qualified accountant from Steve Pye & Co Chartered Certified Accountants.

Mark has over 25 years of experience advising businesses on company tax legislation and is the Electric Car Guides contributor for all things tax.

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