With new 2024 registration plates hitting the market, what are the salary sacrifice for electric vehicles (EVs) that employees should have on their radar? We take a look at the impressive cost savings available through salary sacrifice, the benefits versus personal contract hire and highlight some of our favourite electric cars.
What is a salary sacrifice car scheme?
A salary sacrifice for an electric car scheme is a funding method which enables non-company car drivers to exchange a portion of their gross salary for a fully maintained electric vehicle. Because the monthly lease payment is taken from the employee’s gross salary, it reduces the amount of income tax and national insurance (NIC) payable. It is also popular with employers as it reduces NIC liabilities whilst providing a valuable employee benefit.
Why is electric vehicle salary sacrifice better than a personal lease?
Salary sacrifice for electric vehicles is highly tax efficient which means it can be a better option for employees than a personal lease, here are some of the benefits:
- No upfront lease payment
- Typically cheaper than a personal lease
- Easy to budget – maintenance, insurance and breakdown are normally bundled in
- No personal credit checks required or impact on credit score - the employer holds the contract with the lease provider
So, with the funding taken care of, what are the top electric vehicles for business drivers?
There are a phenomenal number of electric cars to choose from and there’s a car to suit most budgets. We’ve picked our three favourites for each tax bracket, all of which are regularly showcased in our salary sacrifice fer electric vehicles driver portal.
Gofor’s top 3 EVs for the 20% tax bracket
Our picks include a couple of budget-friendly options that really pack a punch. Funding with a salary sacrifice for cars scheme typically saves 31% versus personal contract hire*.
Ora 3 - 126kW First Edition 48kWh 5dr Auto
Previously known as the Funky Cat. This stylish little car was voted best-in-class small family car by Euro NCAP achieving 5 stars in its safety tests. The model has a range of up to 193 miles.
MG4 - 150kW SE EV Long Range 64kWh5dr Auto
Budget-friendly small family hatchback and 2023 UK car of the year. The long-range version has a bigger battery and a range of up to 281 miles.
Toyota - BZ4X 150kW Pure 71.4kWh 5dr Auto
Compact crossover, the all-electric SUV is pitched in a similar spot to Toyota’s famous RAV4 and it’s a collaboration between Toyota and Subaru - it delivers a rangeof up to 318 miles.
Gofor’s top 3 EVs for the 40% tax bracket
Looking for something larger or a touch more refinement? Our favourites in this bracket all typically save 41% versus personal contract hire*.
Lexus RZ - 450e 230kW Direct4 71.4 kWh 5DR Auto
A practical and refined family SUV, challenging the BMW iX3, it has a range of up to 271 miles.
Kia EV6 166 kW GT Line 77.4kWh 5dr Auto
A versatile SUV choice, sporty crossover looks combined with a new level of refinement from Kia and up to 328 miles of range. It also won the WhatCar? Best family Electric SUV of the year for 2024.
Fully Charged Show Kia EV6 review
BMW i4 - 210kW eDrive35 Sport 70kWh 5dr Auto
Mid-size sporty electric coupe and a challenger for the Tesla Model 3. The i4 has a good balance of performance and practicality – and the BMW quality you would expect. Range is up to 299 miles.
Gofor’s top 3 EVs for the 45% tax bracket
And for drivers in the highest tax bracket, we’ve picked our top luxury EVs which typically save 45% versus personal contract hire*.
Porsche Taycan - 420kW 4S 93kWh 5dr Auto 75 years Saloon
Head-turningluxury saloon which delivers thrilling performance, practicality and a range of upto 318 miles.
Carbuyer Porsche Taycan review
Tesla Model Y - Performance AWD 5dr Auto
Billed as a mid-size SUV, the Model Y was Europe's best-selling car in 2023. It benefits from Tesla’s charging network and delivers impressive performance, as well as a rangeof up to 319 miles.
Autotrader Tesla Model Y review
Jaguar iPace - 294 kW EV400 R-Dynamic S 90kWh 5dr Auto
A luxurious and capable SUV offering a comfortable ride and practicality with a high-quality interior and a range of up to 292 miles.
Now is the time to make the switch to an electric car
With low benefit in kind rates on electric vehicles fixed until 2028, it’s a great time to make the move to zero emission motoring.
So, the only question left is,which EV will you choose with your salary sacrifice for cars scheme?
Interested in finding out more about how salary sacrfice fro EV scheme can make a real difference to your business and your people?
Gofor’s aim is to make Salary Sacrifice easy. We’ll demonstrate thecost savings for your business and explain how to get started.
Find out more at Gofor salary sacrifice.
*All calculations based on a 3-year term, 10k per year mileage, Edinburgh postcode, age 42 driver
