Guide | Article

How salary sacrifice can help you switch to EV

027 Feb 2023

Salary sacrifice is switching more people on to electric

In our guide 'What is electric car salary sacrifice?', we touched on what going electric with salary sacrifice involves, and why it can be beneficial if you’re planning to lease a car from your company scheme.

In the UK, the Government has announced plans to ban the sale of new petrol and diesel vehicles from 2030. To support this, benefit-in-kind (BIK) or 'perk' tax on internal combustion engines has increased—meaning that, for employees, going 100% electric can be more viable.

You could save leasing an electric car on salary sacrifice vs. a petrol, diesel or even a hybrid*

When we set up an all-electric salary sacrifice scheme for our people at bp pulse, it came as a bit of a surprise when we saw just how low the monthly net cost was for electric cars versus the nearest petrol or diesel models from the same manufacturer.

There are potential benefits for both 20% and 40% taxpayers. The savings on Income Tax, National Insurance and benefit-in-kind (BIK) tax versus the internal combustion engine, are, well, simply electric.

* Based on a 3-year salary sacrifice contract at 2021-24 BIK rates. Includes insurance, servicing, maintenance and other services depending on the leasing partner. Prices may vary based on, length of contract, mileage, personal circumstances, volume discounts and leasing provider.

100% of our people on salary sacrifice said they’d get another electric car on the scheme

With no deposit to pay and insurance, servicing, maintenance, tyres, breakdown cover and accident support all generally included in the monthly leasing cost, it’s understandable that going electric on salary sacrifice feels like the way forward for many.

Get started with workplace and business EV charging

Whether you’re planning developments, running a fleet, or looking to transition workplace, hospital or retail car parks, we’ll help build an EV strategy around you.

Our people have access to free charging at bp pulse offices as part of our electric car scheme

One of the most common myths about running an electric car is that you need to own or rent a house to be able to charge it. 80% of the staff in our scheme own a home, 20% rent a flat. With an average range of 225 miles, each person charges their batteries weekly, rather than daily, and takes advantage of the free workplace chargers and subsidised on the go charging included in our scheme.

80% of bp pulse staff said they care that the overall net monthly payments for their electric salary sacrifice car are lower than a similar petrol, diesel or hybrid model on the same scheme.

What is the bp pulse team saying?

Eliot rents a flat:

'Having free charging at work and an on-the-go subscription means I don't have to worry about not having a home charger and can significantly reduce my work travel costs. I don't think I've spent more than £20 on 'fuel' in a month yet!'

Joanna owns a house:

'Having charging in our scheme is a real benefit. I can come to work, plug into a slow charger and have a full battery when I leave. No diversions to petrol stations!'

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