Can electric cars be used in a salary sacrifice scheme?

Electric cars can be expensive, and while many individuals would like to purchase an electric vehicle up to 56% are put off because of the price tag. As a result, many are choosing to stick with petrol and diesel cars. 

As part of a business’ sustainability strategy, business owners may want to look at indirect (scope 3) emissions. This includes cars owned by employees that are driven for business purposes or commuting. These account for between 65 and 95% of most companies’ carbon footprint. 

By encouraging employees outside of company car schemes to drive electric cars, companies can reduce their carbon footprint. At no cost to the employer, salary sacrifice schemes can be an attractive solution and enable employees to ‘sacrifice’ a portion of their monthly salary (pre-tax) to fund a vehicle’s monthly lease payments. 

Date published 14 Feb 2024

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