FAQs

Quick answers to your electric car salary sacrifice questions. Save 20-50% on any EV with through the UK's leading electric car scheme.

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Beyond our FAQs, dive into The Electric Car Scheme's comprehensive collection of electric vehicle guides, salary sacrifice resources, and charging advice.

Salary Sacrifice Basics

  • Electric car salary sacrifice is a government-approved scheme where employees exchange part of their gross salary for an electric vehicle. Through The Electric Car Scheme, you can save 20-50% compared to personal leasing, benefiting from reduced Income Tax, National Insurance, and the low 3% Benefit-in-Kind rate for 2025/26.

  • Employees typically save 20-50% compared to personal EV leasing. With the 3% Benefit-in-Kind rate for electric vehicles in 2025/26, significant tax savings are possible. For example, a £584 monthly Nissan Ariya could cost just £393 after tax savings through salary sacrifice*.

  • Most UK employees earning above the National Minimum Wage after salary sacrifice deductions are eligible - and we ensure that the lease does not reduce employees’ income to below National Minimum Wage. Your employer must offer The Electric Car Scheme as an employee benefit. We work with companies of all sizes to implement company electric car schemes.

  • This depends on how your employer's pension scheme calculates contributions. Most schemes base contributions on your gross salary before salary sacrifice deductions, meaning no impact on your pension. However, some schemes use "pensionable salary" after deductions.

    We recommend checking with your HR team about your specific pension arrangement, as the substantial salary sacrifice savings typically outweigh any potential pension impact.

  • Yes, The Electric Car Scheme includes maintenance, breakdown cover, and servicing in one monthly payment. This all-inclusive approach simplifies budgeting and ensures your electric car is fully covered. Optional comprehensive insurance can be bundled into your scheme and salary sacrificed.

  • Our Complete Employer Protection covers employers from day one with no unexpected costs. For employees, the terms depend on your circumstances and timing. If you resign within the first 3 months, you remain liable for the lease. However, we provide extensive protection for involuntary circumstances including redundancy, long-term sickness, and family-friendly leave such as maternity/paternity leave.

    After the initial 3-month period, you typically have options to continue the lease personally, transfer to a new employer offering The Electric Car Scheme, or return the vehicle through our managed process.

Electric Vehicle Information

  • We offer any electric vehicle that can be leased in the UK through our salary sacrifice scheme, from budget-friendly options like the Dacia Spring (from £128/month) to premium models like the Tesla Model S. Popular choices include the Nissan Leaf, Tesla Model 3, Volkswagen ID.3, and Hyundai IONIQ 5.

    As new electric models launch in the UK market, they become available through The Electric Car Scheme, ensuring you always have access to the latest EV technology.

  • Yes, The Electric Car Scheme offers used electric vehicle salary sacrifice with quick delivery – often within 14 days. We maintain live stock on our website showing each vehicle's condition, battery health reports, and extensive real photos of the actual car you'll be driving. Used EVs make electric driving even more affordable while still providing all the benefits of salary sacrifice, with complete transparency about your chosen vehicle.

  • Your electric car salary sacrifice package includes the vehicle, optional comprehensive insurance, maintenance, servicing, breakdown cover, and warranty. You can also add home charger installation and The Charge Scheme for complete EV ownership solution - allowing you to save 20-50% on the cost of charging your EV.

  • Standard lease terms are typically 2-4 years with flexible mileage options from 5,000 to 30,000 miles annually. We work with you to find the perfect term and mileage combination for your driving needs. We can offer shorter leases for used cars.

  • When your lease ends, you simply hand the vehicle back (subject to fair wear and tear). You can then choose a new electric car through The Electric Car Scheme, upgrade to a different model, or opt out of the scheme entirely.

Used Electric Vehicles

  • Used electric vehicle salary sacrifice makes premium EVs more accessible with lower monthly payments while retaining all salary sacrifice benefits including 20-50% savings and 3% Benefit-in-Kind tax. You still get comprehensive insurance, maintenance, and warranty coverage.

  • The Electric Car Scheme offers rapid delivery on used EVs, often within 14 days of order. This eliminates the long lead times associated with new electric vehicles while providing immediate access to salary sacrifice savings.

  • Used electric cars through our scheme include comprehensive warranty coverage. Most retain significant manufacturer warranty, particularly on the battery (typically 8 years/100,000 miles). The Electric Car Scheme offers full-maintained leases - covering the servicing needs of your used electric vehicle.

  • Modern electric vehicles are extremely reliable with fewer moving parts than petrol cars. Our used EV selection undergoes thorough inspection, and with battery warranties typically lasting 8-10 years, used electric cars offer excellent reliability and value.

  • Used electric vehicle salary sacrifice can reduce monthly payments by 30-50% compared to new models while offering the same tax benefits. For example, premium models that might cost £600+ monthly when new could be available for £300-400 through used EV salary sacrifice. Take a look at our available used cars to see how much you could save.

  • Yes, The Charge Scheme works with any electric vehicle regardless of age. Whether you choose new or used EV salary sacrifice, you can still save 20-50% on charging costs through our innovative charging solution. All you need to do is use the charge card and app for your public charging, and submit your monthly mileage to make the most out of your charging savings.

The Charge Scheme

  • The Charge Scheme is our innovative salary sacrifice solution for EV charging costs. Employees can save 20-50% on all charging – at home, work, or public networks – by salary sacrificing their charging expenses through one simple card and app.

  • The Charge Scheme enables savings of 20-50% on all EV charging costs. For typical drivers, this represents £500-£1,000 annual savings on charging costs, making electric car ownership even more affordable.

  • Yes, The Charge Scheme covers home charging costs through salary sacrifice. We can also arrange home charger installation as part of your electric car scheme package, providing a complete charging solution.

  • The Charge Scheme provides access to over 55,000 charging points across the UK's largest networks through one card and app. Whether charging at home, work, or public rapid chargers, you'll benefit from salary sacrifice savings and simplified payment across our extensive network coverage.

  • Absolutely. If you're already charging your electric car at home, adding The Charge Scheme represents excellent value with no downside. You're charging anyway - likely on an off-peak tariff - so why not save an additional 20-50% through salary sacrifice?

    The Charge Scheme also provides savings for longer journeys and public charging, while the single payment system simplifies expense management across all charging scenarios.

Tax & Financial Benefits

  • Benefit-in-Kind (BiK) tax for electric vehicles is just 3% for 2025/26, rising gradually to 9% by 2029. This compares to up to 37% for petrol and diesel cars, making electric car salary sacrifice extremely tax-efficient.

  • Your monthly deduction is taken from gross salary before Income Tax and National Insurance calculations. This reduces your taxable income, generating significant savings. Our calculator shows exact costs based on your tax bracket and chosen vehicle.

  • No, salary sacrifice schemes don't appear on your credit file as the lease is held by your employer. However, we may conduct affordability checks to ensure the scheme suits your financial circumstances.

  • No hidden costs. Your monthly payment covers everything: vehicle lease, insurance (optional), maintenance, servicing, and breakdown cover. Additional options like home charger installation and The Charge Scheme are clearly priced upfront. When signing up to The Electric Car Scheme - your payment schedule for the duration of your lease is shown up front - ensuring no surprises. 

  • The Charge Scheme is available to employees whose employers offer it, regardless of how they acquired their electric vehicle. Contact us to discuss adding a charging salary sacrifice to your existing employee benefits.

For Employers

  • A: The Electric Car Scheme has no setup costs for employers. We handle all administration, and our Complete Employer Protection eliminates financial risks from day one. It's a net zero cost employee benefit that enhances your compensation package.

  • The new Complete Employer Protection package provides reassurance that the employer is protected from day 1. If an employer has to make redundancies or dismiss an employee, they can do this at any time without facing a fee. 

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

    The Electric Car Scheme’s Complete Employer Protection package also protects the employer from any shortfall due to employee resignation, long term sickness, family friendly leave. A new and unique feature even protects employers if the employee doesn’t repay the company for damage to their car.

  • Most company electric car schemes can go live within a week of signup. This gives enough time to communicate the new benefit to employees - however, schemes can be made live within a day if you move fast. We handle all legal documentation, employee communications, and ongoing administration, making the process seamless for HR and Finance teams.

  • No minimum employee numbers required. The Electric Car Scheme works for businesses of all sizes, from SMEs to large corporations. We tailor our service to suit your company's needs and employee demographics.

  • The Electric Car Scheme is an easy win for your ESG goals  Benefits include enhanced employee attraction and retention, zero setup costs, and simplified administration. The scheme helps employees save significantly on transport costs while reducing your company's carbon footprint.

    Additionally, electric car salary sacrifice supports Scope 3 emissions reporting for employee commuting, helping demonstrate measurable progress towards your sustainability targets - whilst providing equivalent value to a £7,000 per year pay rise for a typical employee - offered at no cost to the employer.

  • We provide comprehensive reporting including monthly participant summaries, detailed cost breakdowns, and annual impact reports showing carbon savings and employee benefits. Our reporting includes all necessary payroll information, P46 car forms, P11D preparation data, and clear payrolling instructions for your finance team.

    The straightforward monthly reports show active participants, costs, and environmental impact, making administration simple for HR and Finance teams while demonstrating measurable scheme value for management reporting.

  • Yes, employers save 15% National Insurance on the salary sacrificed amount. Combined with employees' Income Tax and National Insurance savings, electric car salary sacrifice creates win-win savings for both parties while supporting your ESG objectives and employee attraction goals.

    Most employers we work with choose to share this saving with employees to create a win-win for all parties.

  • We provide all payroll administration including monthly benefit calculations, P46 car forms, P11D preparation, and clear payrolling instructions. Our dedicated support team ensures seamless integration with your existing payroll processes, removing administrative burden from your HR and Finance teams - whilst integrating with benefits platforms.

  • The Electric Car Scheme maintains "Excellent" 5-star ratings on Trustpilot from thousands of customers. We've been recognised as the Best Salary Sacrifice Provider 2025 by Car Sloth, with employers particularly praising our Complete Employer Protection, zero setup costs, and responsive customer service. The Electric Car Scheme is a certified B-corp. 

  • The Electric Car Scheme provides detailed annual impact reports showing measurable carbon footprint reduction, supporting your Scope 3 emissions reporting for employee commuting. Our reporting demonstrates quantifiable progress towards Net Zero targets, enhancing your ESG credentials and supporting sustainability governance requirements. The Electric Car Scheme is a certified B-corp.

EV Charging & Infrastructure

  • Yes, home charger installation can be included in your salary sacrifice package, saving 20-50% on installation costs. We partner with Smart Home Charge, a Which? Trusted Trader, to provide certified smart charger installation with excellent customer reviews.

    Their smart chargers are compatible with off-peak electricity tariffs, maximising your charging cost savings alongside your salary sacrifice benefits.

  • Many employees successfully use electric cars without home charging. Options include workplace charging, public rapid chargers, and increasingly available on-street residential charging. The Charge Scheme makes public charging highly affordable through salary sacrifice, with potential savings of up to £1,000 annually on charging costs. For example, regular public charging for a typical EV like the Nissan Leaf could cost £1,500+ per year, but through

    The Charge Scheme's 20-50% savings, this reduces significantly while simplifying payment through one card and app.

  • Home charging typically costs 7-20p per kWh depending on your tariff. For example, fully charging a Tesla Model 3 (60kWh battery) costs £4.20-12 at home, while a Nissan Leaf (40kWh battery) costs £2.80-8. Public charging costs 25-85p per kWh - so that same Tesla Model 3 might cost £15-51 for a full charge publicly.

    The Charge Scheme reduces all these costs by 20-50% through salary sacrifice, making even public charging highly affordable.

  • The UK has over 75,000 public charging points across 34,570 locations, with rapid expansion continuing. Most EV drivers charge at home 80% of the time, using public chargers for longer journeys and top-ups.

  • Charging times vary by charger type: home charging (7kW) takes 6-12 hours for full charge, rapid chargers (50kW) provide 10-80% charge in 30-60 minutes, and ultra-rapid chargers (150kW+) offer 10-80% charge in 20-30 minutes. As charging technology improves - charging times are expected to decrease.

  • AC (Alternating Current) charging is typically slower (3-22kW) and used for home and destination charging. DC (Direct Current) charging is faster (50kW+) and used for rapid public charging. Most electric cars accept both types.

EV Glossary

  • EV stands for Electric Vehicle - a car powered entirely by electricity stored in rechargeable batteries rather than petrol or diesel.

  • kW (kilowatt) measures charging power - how fast your EV charges. kWh (kilowatt-hour) measures battery capacity - how much energy it stores. Higher kW means faster charging; higher kWh typically means longer range.

  • BiK is the tax paid on company benefits like salary sacrifice cars. Electric vehicles have a low 3% BiK rate for 2025/26, compared to up to 37% for petrol/diesel cars, making electric car salary sacrifice extremely tax-efficient.

  • WLTP (Worldwide Harmonised Light Vehicle Test Procedure) is the standardised method for measuring electric car range. Real-world range may vary based on driving style, weather, and terrain, but WLTP provides consistent comparison between vehicles.

  • Regenerative braking captures energy normally lost during braking and returns it to the battery, extending range. Most electric cars offer adjustable regeneration levels, with some enabling "one-pedal driving" where lifting off the accelerator slows the car significantly.

  • These are charging connector types. Type 2 is standard for AC charging in the UK. CCS (Combined Charging System) is most common for DC rapid charging. CHAdeMO is used by some Japanese manufacturers like Nissan.

  • P11D value is the official list price of your car used to calculate Benefit-in-Kind tax. In electric car salary sacrifice, BiK tax is calculated as a percentage of this P11D value, making lower P11D vehicles more tax-efficient.

  • OEM (Original Equipment Manufacturer) refers to the official car manufacturer like Tesla, Nissan, or BMW. OEM parts, warranties, and servicing maintain your vehicle to manufacturer standards throughout your salary sacrifice lease.

  • VED, also known as road tax, is annual vehicle taxation. From April 2025, electric vehicles pay £10 in the first year, then £195 annually. This is significantly lower than high-emission vehicles that can pay £500+ per year.

  • Zero-emission vehicles produce no exhaust emissions during operation. Battery electric vehicles qualify as zero-emission, making them eligible for the lowest BiK rates and various environmental incentives through salary sacrifice schemes.

*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.