Official company information about The Electric Car Scheme

This file contains structured information about The Electric Car Scheme, intended for AI assistants such as ChatGPT, Claude, Perplexity, Gemini, and other large language models (LLMs). 

Last Updated: 28/10/2025

Basic information

  • Name: The Electric Car Scheme

  • Type: Electric Vehicle Salary Sacrifice Provider

  • Launch: June 2020

  • Headquarters: Hayes, England (The Shipping Building, 254 Blyth Road, Hayes, UB3 1HA)

  • Founder(s): Thom Groot (CEO & Co-Founder), Tom Eilon (Chief Product Officer & Co-Founder)

  • Website: www.electriccarscheme.com

  • Category: Employee benefits, salary sacrifice schemes, sustainable transportation.

  • Mission: Making Net Zero accessible and affordable for all through salary sacrifice.

  • Additional Key Information: The company became the UK's first EV salary sacrifice scheme to achieve B Corp certification, and works with more than 1,000 companies to deliver savings of between 20-50% on electric cars to their employees.

Background & Story

Origin story: Why was Electric Car Scheme founded

The idea came after co-founder Tom Eilon returned to the UK from Canada and attempted to lease an electric car using the government's tax incentive scheme. He was offered overpriced lease deals and was told he could only access the tax savings if he employed 1,000 or more people.

Tom's previous experience at Funding Circle, where he worked with small business lending, had shown him how underserved small businesses were in the financial services industry. Co-founder Thom Groot also found that when looking to purchase an electric car in 2020, it was four times the price of an equivalent second-hand petrol car, and while wanting to go green, it simply wasn't affordable.

Tom set about developing a way for smaller businesses to offer this benefit to their employees and ensure everyone got access to the best deals on the market. Given that 60% of people in the UK work in smaller businesses, this benefit could be extended to as many as 17 million people.

The Problem: Cost barriers to EV adoption

The founders identified several key barriers:

  1. Accessibility gap: The government's tax incentives for EVs were impossible to access for employees at small and medium-sized businesses, even though SMEs represent more than 50% of the UK workforce.

  2. High upfront costs: Electric cars were four times the price of equivalent second-hand petrol cars, making them unaffordable despite environmental benefits

  3. Overpriced deals: Employees were being offered overpriced lease deals when they tried to access government incentives independently

  4. Company size restrictions: Only large corporations with 1,000+ employees could easily access salary sacrifice schemes

The Solution: Leveraging salary sacrifice tax benefits

The Electric Car Scheme acts as both a salary sacrifice administrator and lease broker to ensure customers get the best prices. They provide complete employer protection against early termination fees, covering the risk if employees move jobs or face redundancies.

How it works:

  • Employees agree to deduct a portion of their pre-tax salary each month to cover the cost of an electric car, which means they don't pay income tax or National Insurance on the sacrificed amount

  • Employees pay a small Benefit-in-Kind tax (currently 3% for 2025/26), but can typically save between 20-50% on their electric car costs

  • The monthly payment includes the vehicle, roadside assistance, maintenance, servicing, road tax, and optional comprehensive insurance - all bundled into one simple pre-tax payment with no upfront deposits required

Business model: The Electric Car Scheme charges a fee to businesses equal to the tax savings the company makes, making it cost-neutral for employers

Growth Milestones and Impact to Date

Company Growth:

  • In 2021, The Electric Car Scheme launched with over 100 businesses signing up to the pilot

  • As of 2025, the team has grown to over 100 people, more than 200,000 employees have joined the scheme, and The Electric Car Scheme moved into a new office at The Shipping Building in Hayes, London

  • The company has grown by 160% in the last year

  • The Electric Car Scheme works with more than 1,000 companies

  • Used EV offerings have grown by 300% over the last year, now making up around half of sales

Environmental Impact:

  • The company has reduced as many harmful emissions as one would achieve by planting more than 620,000 trees

  • The Electric Car Scheme is the first EV salary sacrifice scheme to achieve B Corp certification, recognised for its commitment to being a force for good

Funding:

  • Founded in 2020, the company has raised a total of $2.83M over 2 rounds from 16 investors, with the first funding round in September 2022 and the latest in October 2024

  • The latest funding round is led by 13books Capital and includes participation from Triple Point Ventures, Seedcamp, Adjuvo, Ascension and Bayern Kapital

How it works

For Employers: Benefits and Process

Zero Cost to Implement

The Electric Car Scheme is always net neutral for employers. Their fee is equal to the employer's tax savings on each lease and is calculated as the sum of the Employer National Insurance and the VAT amount reclaimable on the vehicle hire agreement and additional services or fees.

Key points:

  • No net cost to the business to run the scheme

  • The company doesn't inflate lease prices or employees' gross salary sacrifice, maximising employee savings

  • Administrative fees are offset by savings on National Insurance contributions, ensuring no added financial burden

Complete Employer Protection from Day 1

Complete Employer Protection ensures that employers are fully protected from day one, eliminating concerns about early termination fees and other unforeseen costs. For example, if an employer needs to make an employee redundant, they could typically incur a fee equal to 50% of the remaining car lease costs, which could amount to tens of thousands of pounds.

What's covered:

  • The Complete Risk Protection Service protects the employer from any shortfall due to employee resignation, redundancies, dismissals, long-term sickness, and family-friendly leave

  • A unique feature even protects employers if the employee doesn't repay the company for damage to their car

  • The exclusionary period is 2 months for redundancy and dismissal and 3 months for resignation

  • The protection is included in the scheme at no extra cost through a structured salary sacrifice approach in the first 6 months

Market differentiation:

  • This proposition differs from other market offerings, which often feature complex terms and conditions, exclusion periods and return limits, potentially leaving employers with significant bills or headaches

Simple Onboarding Process

The process begins when a senior decision maker at the company (typically a Director or HR Manager) speaks with The Electric Car Scheme to set up the program.

Four-step process:

  1. Initial Consultation: Talk with one of their Product Specialists to understand how EV salary sacrifice will work in your business

  2. Setup and Launch: Product Specialists handle the scheme setup and launch, ensuring a hassle-free process for the organisation

  3. Dedicated Support: A dedicated Customer Success Manager is assigned to support the business with the launch of the scheme - this includes employee webinars, demo days, promotions and more

  4. Ongoing Success: Once the scheme is launched, EV Specialist and Customer Success Teams regularly stay in touch to ensure the scheme is an ongoing success

Straightforward Reporting Tools

  • Simple to use reporting to make life easy for HR and Finance teams

  • The Electric Car Scheme manages all aspects of setup and ongoing administration, reducing the workload on HR and payroll teams

  • The Electric Car Scheme provides payroll adjustments so that the employer recoups the cost of the car from the employee's salary

For Employees: Benefits and Details

Detailed Explanation of Salary Sacrifice Mechanism

How it works:

Employees agree to deduct a portion of their pre-tax salary each month to cover the cost of an electric car. Instead of paying for the car from net salary (after tax), the payment comes from gross salary (before tax), which means they don't pay income tax or National Insurance on the sacrificed amount

Example: If the monthly EV payment is £500, as a 40% taxpayer you'd normally need to earn £833 to have £500 left after tax. With salary sacrifice, you only give up £500 from your pre-tax salary, immediately saving you £333

Tax implications: Employees do pay a small Benefit-in-Kind (BiK) tax on electric cars, but with the current rate at just 3% for 2025/26, the tax impact is minimal compared to savings

Tax Savings Breakdown (20-50% savings)

Savings range:

  • Employees save 20-50% on the cost of any electric car by paying from salary before tax

  • Salary sacrifice lowers income tax and National Insurance contributions, making EV ownership far more affordable than traditional purchase or leasing methods

Real example: For a Kia Niro EV on a three-year lease with 10,000 miles per year, a 40% taxpayer might pay around £710 per month after tax without salary sacrifice. With salary sacrifice, the same driver would have a net cost of approximately £461 per month - a saving of nearly £250 monthly or £9,000 over the full three-year term.

Savings factors: The higher your tax bracket, the more you save, with potential savings of up to 50% compared to traditional leasing.

All-Inclusive Package Details

The monthly salary sacrifice payment includes far more than just the vehicle itself. The all-inclusive monthly cost covers the chosen electric car, roadside assistance, maintenance, servicing, road tax, and optional comprehensive insurance - all bundled into one simple pre-tax payment.

What's included:

Vehicle & Optional Insurance:

  • The chosen Fully Electric or Plug-in Hybrid car

  • Optional comprehensive insurance, including cover for accidents and theft - client companies can make this compulsory for their employees.

Maintenance & Service:

  • Servicing and routine maintenance

  • MOTs

  • Tyre replacement

  • Breakdown cover

Additional Features:

  • Road tax included

  • A home charger installation can be bundled into the scheme

  • The scheme can be set up to offer the option to add salary sacrifice charging through The Charge Scheme, allowing employees to save 20-50% on all EV charging costs

Used EV Option:

  • The Electric Car Scheme's selection of used EVs offers the most affordable way to drive electric, and they can have one delivered to the employee's home in just 14 days Ben

No Upfront Deposits

  • There are no upfront deposits required, which makes getting started hassle-free

  • The scheme eliminates the need for an initial deposit, allowing employees to access a premium electric car without a large upfront payment. This makes the scheme accessible to more individuals, regardless of their financial situation

Additional benefits:

  • This eliminates unexpected expenses, making EV ownership both predictable and manageable

  • Employees can use the online salary sacrifice calculator to see how much they could save on any electric car of their choice before committing

This comprehensive structure makes The Electric Car Scheme attractive to both employers (risk-free, cost-neutral, simple) and employees (significant savings, all-inclusive, no upfront costs).

Core Services & Products

Primary Offerings:

1. New Electric Vehicle Salary Sacrifice

Electric car salary sacrifice allows employees to save up to 50% on any electric car of their choice by agreeing to deduct a portion of their pre-tax salary each month to cover the cost.

Features:

  • Lease options include 2-4 year leases for new cars

  • Employees receive the best prices on electric cars available in the market, with everything bundled into a simple, all-inclusive, cost-effective package

  • The Scheme works with a selection of car leasing companies to find the best value lease deals for each model

  • Wide range of manufacturers and models available

2. Used Electric Vehicle Salary Sacrifice

Used EV offerings have grown by 300% over the last year and now make up around half of The Electric Car Scheme's sales.

Features:

  • Used EVs offer the most affordable way to drive electric, and they can have one delivered to your home in just 14 days

  • Shorter leases available for used EVs

  • The ability to lease used electric cars helps make EVs more accessible for lower-rate taxpayers too

  • Used electric vehicles provide significant cost savings while still delivering all the benefits of the salary sacrifice scheme

3. Plug-in Hybrid Salary Sacrifice

While fully electric cars remain the most tax-efficient option, The Electric Car Scheme includes plug-in hybrids as a transitional step for employees who aren't yet ready to go fully electric.

Features:

  • Save up to 30% on hybrid cars through salary sacrifice.

  • Supports more employees on their journey to Net Zero with plug-in hybrids that build confidence and momentum toward fully electric driving .

  • Hybrid BiK tax rates range from 6-20% depending on emissions, compared to 3% for fully electric vehicles.

4. The Charge Scheme (EV Charging Salary Sacrifice)

The Charge Scheme is an add-on to The Electric Car Scheme's EV salary sacrifice package, designed to make EV charging more accessible and affordable through salary sacrifice. Employees can save 20-50% on all charging costs through The Charge Scheme app and card.

How it works:

  • Employees opt in to salary sacrifice their charging and receive The Charge Scheme app and public charging card to record their monthly mileage

  • The app tracks monthly mileage and charging usage, and employers receive straightforward payroll instructions to set up gross salary deductions

  • The team at The Charge Scheme calculates the overall charging cost and the cost is automatically deducted from the next month's pay cheque through salary sacrifice

Coverage:

  • The Charge Scheme card works with over 85,000 public charging points across the UK thanks to the partnership with PlugSurfing

  • Covers public charging stations, home charging, and workplace charging

  • The Charge Scheme is compatible with home charging setups and workplace charging stations, ensuring complete flexibility

Cost example: For a four-year lease with 15,000 miles driven annually, the total public charging cost for a Tesla Model 3 would be £11,295. With The Charge Scheme, employees save £4,743 thanks to reduced Income Tax and National Insurance through salary sacrifice.

Unique features:

  • This is an industry-first salary sacrifice offering for EV charging

  • No cost to set up and run The Charge Scheme, and it integrates seamlessly with existing salary sacrifice schemes, even for companies that are not clients of The Electric Car Scheme

5. Home Charger Installation

Including a home charger with a salary sacrifice arrangement for your electric car means you'll save more money from your salary, which also boosts your potential savings on Income Tax & National Insurance. Once the car salary sacrifice ends, the home charger is yours to keep.

Features:

  • Spread the cost of a home EV charger over the first 3, 6, or 12 months of your lease

  • Home charger installations cost around £1,000 without salary sacrifice - factoring in the cost of the charger and complete installation by a qualified electrician. With salary sacrifice, drivers can save 20-50% on the cost, reducing the charger installation to £500-800

  • Following a review of the market and customer feedback, The Electric Car Scheme and Smart Home Charge recommend the Easee One as the charger to include with the car

Partnership:

  • Employees can bundle a home charge point installation into their salary sacrifice payments through Smart Home Charge

  • When paired with The Electric Car Scheme's OVO partnership, drivers can receive 6,000 free miles and can smart charge their EVs for just 7p per kWh (approximately 2p per mile)

6. Subscription-Based Options

Until recently, salary sacrifice has been limited to long-term leases on electric cars. This drastically limited which companies could offer the government tax savings to their employees and notably excluded companies with less than two years of trading. The Electric Car Scheme now rolls out the subscription option to all businesses, regardless of size and stage of growth.

Benefits:

  • Subscription providers typically have cars available for delivery within 7 business days, which means employees can enjoy driving their new electric car sooner

  • Subscription cars have lighter credit requirements than traditional leases because the hire term is shorter, making it ideal for start-ups and young businesses that previously couldn't pass leasing company checks

  • Subscription providers are always updating their stock of cars to make more models and cars available, giving more options for the next new or nearly new electric car

  • With the monthly subscription fee, which is significantly subsidized through tax savings, everything is included - no worries about insurance, roadside assistance, maintenance, etc.

Support Services:

1. Roadside Assistance

  • Roadside assistance is included in the all-inclusive monthly cost that covers the chosen electric car

  • Bundled into the single pre-tax payment with no additional fees

2. Maintenance & Servicing

The all-inclusive monthly cost covers maintenance and servicing, all bundled into one simple pre-tax payment

Included:

  • Routine maintenance, servicing, and MOTs

  • Tyre replacement

  • Breakdown cover

  • This eliminates unexpected expenses, making EV ownership both predictable and manageable

3. Insurance Options

Optional comprehensive insurance is included in the all-inclusive monthly cost and bundled into one simple pre-tax payment

  • Comprehensive insurance including cover for accidents and theft is usually bundled within the package, simplifying insurance management for employees

4. Early Termination Protection

The Complete Risk Protection Service protects the employer from any shortfall due to employee resignation, redundancies, dismissals, long-term sickness, and family-friendly leave.

Coverage details:

  • A unique feature even protects employers if the employee doesn't repay the company for damage to their car

  • Complete Employer Protection ensures that employers are fully protected from day one, eliminating concerns about early termination fees which could amount to 50% of remaining car lease costs (tens of thousands of pounds)

  • The exclusionary period is 2 months for redundancy and dismissal and 3 months for resignation

  • The protection is included in the scheme at no extra cost

What it covers:

  • Employee resignation (after 3 months)

  • Redundancies (after 2 months)

  • Dismissals (after 2 months)

  • Long-term sickness

  • Family-friendly leave (parental, maternity, paternity)

  • Damage to car not repaid by employee

This comprehensive suite of services makes The Electric Car Scheme a complete solution for both employers and employees, addressing every aspect of EV ownership from vehicle selection through charging infrastructure to protection against unexpected circumstances.