Wednesday, July 30, 2025
NewsWave
No Result
View All Result
  • Home
  • World
  • USA
  • Business
  • Sports
  • Entertainment
  • Technology
Login
  • Home
  • World
  • USA
  • Business
  • Sports
  • Entertainment
  • Technology
Login
No Result
View All Result
Login
NewsWave
No Result
View All Result
Home Business

Green Commuting: Salary Sacrifice & The Electric Car Revolution

26 February 2024
in Business
0
Green Commuting: Salary Sacrifice & The Electric Car Revolution
Share on FacebookShare on Twitter
How does this make you feel?


The electric car revolution is finally here, with EV sales projected to reach £10.7 million by 2025. In many ways, the UK is leading this revolution as the government has recently announced a plan to have 80% of new cars and 70% of new vans be zero-emission by 2030. The plan is backed by over £2 billion in government investments. This is one of the most significant shifts by any nation towards electric vehicles for a brighter future.

The government is planning to replace 80% of the vehicles running on the UK roads with EVs in just 6 years. For the general public, it means that you quickly need to find ways to finance an electric vehicle. A great solution to this is a salary sacrifice scheme for electric cars such as Loveelectric. Within the following pages, we are going to explain what this scheme is, how it benefits the UK’s workforce, and how it sets the country up for a greener, more sustainable future.

What Exactly is Salary Sacrifice for Electric Car

Salary sacrifice schemes aren’t a new idea. Salary sacrifice scheme (AKA “salsac”) is where an employee agrees to receive less salary in exchange for goods or services. This can ultimately lower your tax threshold as you pay for goods, before receiving your salary. The portion of the salary that the employee sacrifices is then used to fund the repayments. This is a relatively new concept when it comes to getting your hands on an electric car through salsac.

The salary sacrifice scheme for EVs works like this:

Employee selects an electric car from options approved by the company or employer. They usually offer both new and used electric vehicles to choose from.
The employer either finances the car itself or signs a contract with a third party for the provision of the vehicle. The car is registered under the employer’s or the leasing company’s name.
As per the contract, a portion of the employee’s salary is then held by the employer each month for the repayments.

The tenure of the salary sacrifice scheme is around 2 to 4 years. At the end of the lease period, the car is transferred to the employee’s name, who can then decide whether they want to keep it or exchange it for a new car.

Benefits of Salary Sacrifice Scheme for EV’s

Salary sacrifice for electric cars offers a number of benefits for both the employee and the employer, with the highlights being the following:

Tax Cuts: First and foremost, Salsac for EV allows employees to save around 30% on the overall cost of the car since a part of their salary is being deducted before tax. Lower earnings mean a lower tax bracket.
Low Benefit-in-Kind Tax: In the UK, the tax the employee pays for having an electric car as a benefit is reduced. It’s only 2% of the car’s list price for the tax till March of 2025. This can lead to substantial savings.
Employer Savings: The employer also benefits from the scheme. They can save up to 12.8% on National Insurance contributions, which can be a significant amount company-wide. Businesses can also improve on their ESG credentials by lowering their carbon footprint.
Overall Savings: Let’s say the employee was spending £800 a month on car-related expenses like lease payments, fuel, insurance, and maintenance. With a salary sacrifice scheme, this could drop to £611 a month. That means the employee could save more than £2,200 a year per employee.

These are only a few of the benefits employees and employers get with the help of salary sacrifice for electric car schemes. Remember, the specifics can vary depending on the policies of your employer. So, it is always a good idea to check the details of your agreement before signing a contract.

How is Salary Sacrifice Leading the Electric Car Revolution in the UK

With all the benefits for employees as well as employers, the salary sacrifice scheme is playing a significant role in the uptake of electric vehicles in the UK. A recent survey conducted by the Electric Car Scheme suggests that 83% of the companies are planning to offer a salary sacrifice scheme for EVs in 2024. Interestingly, recent stats published by Arval, a car leasing company, revealed that 88% of the 5,000 cars leased in 2023 through their employer’s salary sacrifice schemes were EVs.

The UK government has announced a plan that by 2035, 100% of the new car sales in the UK must be Zero Carbon Emissions (ZEVs). The salary sacrifice scheme is going to play an absolutely crucial role in achieving this milestone as it enables the UK working class to easily switch to EVs without worrying about their credit scores or dealing with the complexities of leasing through banks. This scheme also allows employees to save massively on taxes and, therefore, offers an easy-to-follow and highly beneficial roadmap to switching to EVs.

Future Prospects of Salary Sacrifice for Electric Cars

It’s clear that salary sacrifice schemes for electric cars are becoming more popular. More employers are giving their employees the option to get an electric vehicle as part of their salary package. In fact, 83% of companies are planning to offer this option by 2024.

The tax on perks like having an electric car (known as the Benefit-in-Kind tax) is currently very low at 2%. This is done to encourage people to choose electric cars over their fossil fuel counterparts. Even though this tax will increase slightly each year from 2025 to 2028, the overall tax benefits of these schemes are still significant.

From 2025, electric car owners will have to pay a road tax. But, electric cars will be charged the lowest rate for the first year and then pay the same rate as other vehicles over the preceding years.

Tax is also set to increase for the country’s highest earners. Those who make more than £125,140 per year will now pay a higher rate of tax. High earners can save even more money with salary sacrifice schemes due to this reason.

So, the future looks bright for salary sacrifice schemes for electric cars. They’re a great way for employees to drive an electric car and save money while helping the environment.

Related



Source link

🪄 Creating a simple explanation...

Tags: carCommutingElectricGreenRevolutionSacrificesalary
Previous Post

10 Funding Options For Young Entrepreneurs

Next Post

Instagram and Facebook Subscriptions Are a New Focus of Child Safety Suit

Related Posts

Highwoods (HIW) Q2 2025 Earnings Call Transcript
Business

Highwoods (HIW) Q2 2025 Earnings Call Transcript

by My News Wave
30 July 2025
0

Highwoods Properties (NYSE:HIW) reported strong operational performance in Q2 2025, marked by increased leasing activity and a stable occupancy rate, as management prepares for long-term repositioning. With secured leases poised to boost future NOI growth and a solid balance sheet featuring minimal debt maturity, the company is well-positioned for capital initiatives and enhanced financial results by late 2026. Want More Context? 🔎

Read more
Old Dominion (ODFL) Q2 2025 Earnings Transcript
Business

Old Dominion (ODFL) Q2 2025 Earnings Transcript

by My News Wave
30 July 2025
0

Old Dominion Freight Line (NASDAQ: ODFL) emphasizes a disciplined pricing strategy amid ongoing pressure on volumes and revenue. Despite short-term profitability challenges due to competitive pressures and industry overcapacity, the company continues to invest strategically in network capacity, technology, and workforce to prepare for long-term demand recovery. Want More Context? 🔎

Read more
Why AST SpaceMobile Stock Has Been Quietly Crushing the Market Lately
Business

Why AST SpaceMobile Stock Has Been Quietly Crushing the Market Lately

by My News Wave
30 July 2025
0

AST SpaceMobile (NASDAQ: ASTS), a provider of low Earth orbit satellites for cellular connectivity, has seen its stock surge over 330% in the past year, significantly outperforming the Nasdaq Composite's 20% rise. By addressing coverage gaps in rural areas with 2G, 4G, and 5G signals via low- to mid-band spectrums, AST competes effectively against larger players like SpaceX's Starlink. Want More Context? 🔎

Read more
Why GeneDx Holdings Stock Blasted 8% Higher Today
Business

Why GeneDx Holdings Stock Blasted 8% Higher Today

by My News Wave
29 July 2025
0

GeneDx Holdings (NASDAQ: WGS) saw its stock rise over 8% following a strong second-quarter earnings report that revealed nearly $103 million in revenue, a 49% year-over-year increase, driven by a 69% surge in exome and genome testing sales. This performance stood in stark contrast to the S&P 500's modest 0.3% decline. Want More Context? 🔎

Read more
Why Globe Life Stock Rocketed Almost 7% Higher Today
Business

Why Globe Life Stock Rocketed Almost 7% Higher Today

by My News Wave
29 July 2025
0

Globe Life (NYSE: GL) saw its stock price jump nearly 7% after being cleared of a regulatory investigation by the Department of Justice, which confirmed no enforcement action would be taken against the company. This positive news followed recent analyst updates and came after Globe Life had disclosed the probe's conclusion the previous week. Want More Context? 🔎

Read more
This Underrated AI Stock Could Deliver Huge Returns by 2030
Business

This Underrated AI Stock Could Deliver Huge Returns by 2030

by My News Wave
29 July 2025
0

The introduction of ChatGPT has shifted perceptions of Alphabet (NASDAQ: GOOGL, GOOG), as its market share in digital advertising and Google Search fell below 90%. Despite this, investors remain optimistic about Alphabet's potential for significant growth over the next five years, indicating confidence in the company's future. Want More Context? 🔎

Read more
NewsWave

News Summarized. Time Saved. Bite-sized news briefs for busy people. No fluff, just facts.

CATEGORIES

  • Africa
  • Asia Pacific
  • Australia
  • Business
  • Canada
  • Entertainment
  • Europe
  • India
  • Middle East
  • New Zealand
  • Sports
  • Technology
  • UK
  • USA
  • World

LATEST NEWS STORIES

  • SOUTH PARK and BEAVIS & BUTT-HEAD Creators Reveal They Almost Did a Crossover
  • US wants back millions in COVID relief from local governments over missing reports
  • US Intelligence Intervened With DOJ To Push HPE-Juniper Merger
  • About Us
  • Disclaimer
  • Privacy Policy
  • Cookie Privacy Policy
  • Terms and Conditions
  • Contact Us

Copyright © 2025 News Wave
News Wave is not responsible for the content of external sites.

No Result
View All Result
  • Home
  • World
  • USA
  • Business
  • Sports
  • Entertainment
  • Technology

Copyright © 2025 News Wave
News Wave is not responsible for the content of external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In