- The Electric Car Scheme will now offersalary sacrifice services via subscription for electric cars, a first in the UK.
- Employees can enjoy 30-60% savings on any electric car through salary sacrifice, at no cost to their employer.
- UK start-ups, previously unable to offer such benefits via traditional leasing methods, can now also offer these savings to their employees.
- Subscription electric cars are a rapidly growing market in the UK, offering a hassle-free drive experience.
Employee benefit initiative, The Electric Car Scheme, is today launching its salary sacrifice service in partnership with subscription car service Onto. The initiative, which is the first of its kind to launch in the UK, will now make it possible for more business to access government tax savings on electric cars.
The Electric Car Scheme helps employers offer electric cars to their employees and save 30-60% using the government tax incentive and salary sacrifice. The initiative operates like the Cycle to Work scheme, but for electric cars.
To help more drivers across the country benefit from these savings and make the switch to electric, The Electric Car Scheme has partnered with the UK’s leading electric car subscription service Onto (which also operates Onto for Business) to provide salary sacrifice administration for subscription electric cars. Subscription is a new model of car ownership and offers hassle-free access for a monthly fee. This partnership is the first of its kind in the UK and is a radical change to the salary sacrifice market.
Until now, 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. In 2021 alone there were 810,000 new businesses in the UK and these companies were previously unable to offer electric car salary sacrifice to their employees.
The Electric Car Scheme CEO and Co-Founder Thom Groot noted that “more than 80% of employees in the UK want their next car to be an electric car, and it’s only right that the government rebate for electric cars is made accessible to as many people as possible. Subscriptions have been a great way for people to try driving and owning an electric car. Now The Electric Car Scheme can help more people try electric car subscriptions and make this step as affordable as possible.”
Subscription cars are a rapidly growing market and are a great option for many people due to their attractive offering – cars are available quickly and maintenance, insurance, breakdown cover etc. are all included. Employers are now able to offer subscription electric cars to their employees via salary sacrifice through The Electric Car Scheme.
Onto CEO and Co-Founder Rob Jolly is excited to make their subscriptions easy to use alongside government incentives through The Electric Car Scheme: “This partnership is an exciting proposition for employers and employees alike. As the shift to electric cars continues, we want to continue making electric cars accessible to all and provide customers with a cost-effective, hassle free, flexible experience that also makes them feel good about their impact on the planet.”
Once an employer signs up to the initiative, The Electric Car Scheme helps their employees select and order the best electric car for them. The employer is also supported throughout the process with payroll, admin and finance support offered by The Electric Car Scheme.