Is salary sacrifice worth it for electric cars?
In January, the UK government introduced a zero emission vehicle mandate, which requires 100% of new cars and vans to be zero emission vehicles by 2035.
Despite this, electric car sales seem to have been stalling recently – perhaps due to difficult economic conditions with high interest rates.
One way to make electric vehicles more accessible to individuals is to use them in salary sacrifice schemes, as the taxable benefit is low for employees.
While it might seem counter-intuitive, opting into a salary sacrifice scheme for an electric car and taking the pay cut could actually boost an employee’s take-home pay, thanks to reduced Income Tax and National Insurance Contributions (NICs).