Fleet Evolution says ‘there has never been a better time’ to consider switching staff into an electric car provided under a salary sacrifice scheme.
The company said there is a misconception that salary sacrifice schemes are for employees who are paying tax at 40%, but the scheme benefits individuals paying tax at 20%, as you cannot allow a salary sacrifice to take net pay below the minimum living wage.
Using figures from the Government car cost calculator, the company said for a five-year-old Vauxhall Astra 1.4T 16v 150bp SRi 5dr, the total annual running cost over a typical 10,000 miles is £8,070 a year or around £675 a month, including depreciation, fuel, SMR and insurance.
Andrew Leech, managing director at Fleet Evolution, said: “However, by having a comparable electric car under a company-provided salary sacrifice scheme, such as a VW ID3 Life Pro, a typical 20% taxpayer would incur a lease rental cost of £322 per month to travel the same 10,000 miles, with recharging at home typically costing around £50 a month – that’s around half of what they’d pay in running their own car.
“For staff in lower pay brackets, this saves a significant proportion of their monthly take-home salary at a time when living costs are coming under unprecedented pressure.
"At the same time, they will also be making a major contribution to reducing their company’s carbon footprint.
“For employers, from an ethical viewpoint, going down an EV salary sacrifice route shows them in a positive light in trying to help their employees manage their living costs at a time of price rises across the board and in just about every area of society.”
The average car now costs more than £100 to fill, despite the Government announcing a £5bn package to reduce costs, in March.
Want to compare car running costs? Use the Fleet News Car Running Costs tool
> Interested in comparing electric vehicle data? Check out our EV tool.
> Interested in ensuring the efficient use of EVs. Check out our dedicated editorial sections: Insight & policy | EV news | Charging & infrastructure | Costs & incentives | Benefit-in-kind | EV case studies | EV road tests
More articles on:
The UK's most trusted suppliers, as voted for by fleets.
The Fleet News Reader Recommended programme allows fleet decision-makers to have their say about the companies they trust most to offer the best partnership.
We have gathered opinions via research conducted among the Fleet News audience. Fleet nominated their best suppliers in each industry segment, but also their worst.
The top-performing companies are then granted Reader Recommended status.
Read now
Jessica is event and digital content co-ordinator for all our events.
She was the web producer at Fleet News, Commercial Fleet and Smart Transport until April 2023.
She started her career as a content writer for a digital marketing agency that specialised in financial services, where she worked for more than two years.
Jessica was awarded the degree of Bachelor of Arts with Honours in Multimedia Journalism in 2017.
Login to comment
Comments
No comments have been made yet.