The 10 Most Asked Questions by Employees About EV Salary Sacrifice (2025 Guide)

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Key Insights

• Employee savings through EV salary sacrifice schemes average 20-50% compared to personal leasing, with the current 3% Benefit-in-Kind rate making electric vehicles significantly more affordable than petrol alternatives in 2025.
• Job security concerns dominate employee queries, but leading schemes like The Electric Car Scheme offer Complete Employer Protection from day one, eliminating financial risks during redundancy or illness.
• Most employees can use their salary sacrifice electric car for unlimited personal use, with comprehensive packages including maintenance, insurance, breakdown cover, and tires in one pre-tax monthly payment.
• Delivery times for new electric vehicles typically range from 3-6 months, though used EVs through salary sacrifice schemes are often available for quick delivery with the same tax benefits.

With over one million electric cars now sold in the UK and the government's zero-emission vehicle mandate requiring 22% of new car sales to be electric in 2025, employee interest in electric car salary sacrifice schemes has never been higher. Based on extensive analysis of employee enquiries and industry data, here are the definitive answers to the most commonly asked questions about EV salary sacrifice.

1. How Much Money Can I Actually Save with Electric Car Salary Sacrifice?

The definitive answer: Employees typically save 20-50% compared to personal car leasing, with some cases showing even higher savings. Here's exactly how the mathematics work:

• Tax savings: Pay through pre-tax salary, avoiding 20% Income Tax + 12% National Insurance (32% total for basic rate taxpayers)

• Higher rate taxpayers: Save 42% (40% Income Tax + 2% National Insurance)

• Benefit-in-Kind tax: Just 3% for 2025/26 on electric vehicles (compared to up to 37% for high-emission petrol cars)

Real example: A £500/month Tesla Model 3 through salary sacrifice electric car schemes could cost as little as £350/month after tax savings for a basic rate taxpayer.

The Electric Car Scheme's calculator provides accurate figures based on your salary and chosen vehicle.

2. What Exactly Is Included in My Monthly Payment?

Your monthly electric car salary sacrifice payment covers:

• Electric vehicle lease

• Full maintenance and servicing

• MOT tests

• Road tax (VED)

• Breakdown cover and roadside assistance

• Tyre replacements due to normal wear

Often included or optional:

• Comprehensive insurance

• Home charger installation

• Public charging cards

• Damage protection at lease end

It is worth noting that some schemes exclude insurance or charge extra for essential services. The Electric Car Scheme provides complete transparency with no hidden costs.

3. Can I Use My Salary Sacrifice Car for Personal Use?

Absolutely yes - this is one of the biggest misconceptions about company electric car schemes. You can use your electric vehicle for:

• Unlimited number personal journeys - within your agreed lease mileage limits (holidays, shopping, social events)

• Family use (school runs, weekend trips)

• Commuting and business travel

• Any legal purpose within the UK and EU

Salary sacrifice vehicles are treated as company cars for tax purposes, meaning personal use is explicitly permitted and expected. The 3% Benefit-in-Kind rate already accounts for personal usage.

4. What Happens If I Leave My Job or Get Made Redundant?

The Electric Car Scheme offers Complete Employer Protection covering employees from day one:

Protected scenarios:

• Redundancy: No early termination fees

• Long-term illness: Flexible payment options or early termination

• Maternity/paternity leave: Payment adjustments during statutory pay periods

• Company insolvency: Protection against losing your vehicle

Some providers may charge early termination fees even for redundancy. Some have exclusion periods or require employees to pay excess charges.

Voluntary resignation: Early termination fees may apply, but these are typically reasonable and transparent.

5. What Are the Contract Terms and Mileage Options?

Flexible terms designed for real usage:

Contract lengths:

• 12 months minimum (some schemes require 24+ months)

• 24-36 months most popular (optimal for latest technology)

• Up to 48 months available for lower monthly payments

Mileage allowances:

• 5,000-30,000 miles annually (customisable to your needs)

• Average UK driver: 7,400 miles annually easily accommodated

• Excess mileage charges: Typically 3-8p per mile (varies by vehicle)

Why this matters: Unlike fixed packages from other providers, our leading electric car scheme options allow customisation to match your actual driving patterns.

6. How Long Will I Wait for My Electric Car?

Realistic delivery timelines (January 2025):

New vehicles:

• Tesla models: 8-12 weeks (fastest delivery)

• Popular models (Polestar, BMW): 3-4 months

• High-demand vehicles: 4-6 months

• Some manufacturers: Up to 8 months for specific configurations

Faster alternatives:

• Used electric cars: Often available within 14 days

• Pre-configured stock: 4-8 weeks delivery

• Demo vehicles: Immediate availability with significant savings

The Electric Car Scheme's used vehicle programme offers the same salary sacrifice benefits with much faster delivery and lower monthly costs.

7. Can I Change My Vehicle During the Contract?

This is generally not permitted because:

• Lease agreements are fixed-term contracts

• Changing the lease creates administrative complexity for payroll systems

• Vehicle depreciation calculations are preset

Exceptions available:

• Life changes: Marriage, new family members (case-by-case basis)

• Job role changes: If vehicle no longer suitable for work requirements

• After minimum term: Some schemes allow upgrades after 12+ months

Choosing your vehicle carefully using comprehensive vehicle guides and taking extended test drives can help you avoid disappointment later. 

8. Is Insurance Included and What Does It Cover?

Insurance options can vary significantly between schemes. At The Electric Car Scheme - fully comprehensive insurance coverage is an optional extra - that can be salary sacrificed. 

Fully comprehensive insurance typically includes:

• Accident damage (own vehicle and third parties)

• Theft and vandalism protection

• Windscreen replacement

• Personal belongings cover

• Courtesy car during repairs

Additional benefits often included:

• Damage waiver at lease end (minor scratches/dents)

• Key replacement cover

• European travel coverage

9. How Does Maternity Leave Affect My Payments?

Our complete employer protection ensures that your lease remains covered during significant life events such as maternity leave. 

During statutory maternity pay:

• Reduced payments to match lower salary (automatic adjustment)

• Payment holidays in exceptional circumstances

• Contract extensions to maintain affordable payments

During unpaid leave:

• Temporary suspension options available

• Early termination without penalties (qualifying circumstances)

• Return-to-work guarantees for continuing schemes

Leading schemes like The Electric Car Scheme design policies specifically supporting working parents rather than treating leave as a problem.

10. What Electric Cars Can I Actually Choose From?

The Electric Car Scheme has a comprehensive list of vehicles available - covering the breadth of the market. If a car is not shown on our quote tool - we will ensure that is it made available upon request.

Vehicle categories available:

• Small electric cars: Renault 5, MINI Electric, Fiat 500e

• Family cars: Tesla Model 3, BMW i4, Volkswagen ID.4

• Premium vehicles: Tesla Model S, BMW iX, Mercedes EQS

• SUVs and crossovers: Tesla Model Y, Hyundai IONIQ 5, Polestar 3

Budget considerations:

• £200-300/month: Entry-level vehicles, used EVs

• £300-500/month: Popular family cars, premium used vehicles

• £500-800/month: Latest premium models, performance vehicles

• £800+/month: Luxury and high-performance EVs

Unlike many competitors with restricted vehicle lists, comprehensive schemes provide access to virtually any electric vehicle available in the UK market.

Why These Questions Matter in 2025

Understanding these key questions becomes crucial as the UK accelerates toward its 2030 zero-emission vehicle targets. With one million electric cars now sold and the government's mandate requiring increasing EV sales percentages annually, electric car salary sacrifice schemes represent the most cost-effective path to electric vehicle adoption.

Employees choosing comprehensive schemes like The Electric Car Scheme benefit from industry-leading protection, transparent pricing, and innovative features like The Charge Scheme for salary sacrificing charging costs.

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Last updated: 21/07/2025

Our pricing is based on data collected from The Electric Car Scheme quote tool. All final pricing is inclusive of VAT. All prices above are based on the following lease terms; 10,000 miles pa, 36 months, and are inclusive of Maintenance and Breakdown Cover. The Electric Car Scheme’s terms and conditions apply. All deals are subject to credit approval and availability. All deals are subject to excess mileage and damage charges. Prices are calculated based on the following tax saving assumptions; England & Wales, 40% tax rate. The above prices were calculated using a flat payment profile. The Electric Car Scheme Limited provides services for the administration of your salary sacrifice employee benefits. The Electric Car Scheme Holdings Limited is a member of the BVRLA (10608), is authorised and regulated by the FCA under FRN 968270, is an Appointed Representative of Marshall Management Services Ltd under FRN 667174, and is a credit broker and not a lender or insurance provider.

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