A guide to setting up a salary sacrifice EV car scheme


With a growing demand for electric vehicles (EVs), businesses are using salary sacrifice schemes to support greener transportation. In this guide we’ll explore everything you need to know about setting up a salary sacrifice EV car scheme with Synergy, highlighting key steps and the benefits for employers and employees.

What to consider before implementing a salary sacrifice EV car scheme

An electric car scheme can be a valuable employee benefit. Here are some key factors to consider before implementing one for your company.

Assess your business and employees

Begin by evaluating your business and employee eligibility. Consider things like your company’s carbon footprint goals, average employee earnings, and staff turnover rates to ensure a salary sacrifice EV car scheme meets the needs of your staff.

Weigh up the pros and cons

Once you know your business is eligible, consider the advantages and disadvantages of a salary sacrifice EV car scheme. Compare the pros such as making staff feel valued, providing access to brand-new EVs, and offering savings on income tax and National Insurance payments, against any potential drawbacks.

Choosing the best leasing company

When selecting a salary sacrifice provider, choose a company that offers a diverse range of vehicle options, as well as exceptional customer support. This will help ensure a seamless experience for your business and employees. To learn more about why Synergy is a great choice for your vehicle salary sacrifice scheme, check out our comprehensive guide.

How much time does it take to run the salary sacrifice EV car scheme each month?

The time needed to run a salary sacrifice electric car scheme will depend on multiple factors. Depending on your provider, you’ll need to manage vehicle orders and ensure everything is compliant with tax rules. For larger companies, this may take longer.

That’s where Synergy comes in, as our dedicated online salary sacrifice portal makes managing your scheme easy and hassle-free.

Promoting your salary sacrifice EV scheme

How you promote your salary sacrifice scheme should also be considered, as this will impact staff uptake. Try using multiple channels like email newsletters, online sessions, or face-to-face workshops. By explaining the financial and environmental benefits, tax savings, and reduced running costs, your business can ensure employees feel confident in signing up.

Regularly reviewing and updating the scheme

It’s essential to review your scheme periodically to ensure it remains competitive and meets changing tax laws, employee preferences, and market conditions. We suggest creating an internal process for your compliance or HR team, who can then follow any changes in legislation, particularly around Benefit-in-Kind (BIK) tax rates for electric vehicles and salary sacrifice schemes.

It’s not just about legislation, you should also seek employee feedback to understand their experience with the scheme. This will help identify areas for improvement, whether that’s offering a wider range of EV’s, simplifying the onboarding process, or improving communication.

Is now the time for my business to implement a car leasing salary sacrifice scheme?

Now is a great time to launch a salary sacrifice car scheme. With the government providing more incentives and employee interest in sustainable transport growing, salary sacrifice car leasing is an attractive benefit.

Choose Synergy as your provider and we’ll give you the freedom to set up a scheme that works for your company. We’ve also been awarded the Feefo 10 Years of Excellence Award for a decade of best-in-class customer service, and recognised as Broker of the Year 2024 in the Broker News Awards.

To find out more, get in touch with us today.


SALARY SACRIFICE