Employee guide to salary sacrifice

Unlock flexible, affordable and zero emission driving through your employer.

 

Save 30-60% on an EV subscription with Salary Sacrifice by elmo.

Fancy saving 30-60% on your dream electric car?

Well now you can, with a salary sacrifice subscription by elmo.

It’s simple. You pay for an all-inclusive EV subscription through your employer by ‘sacrificing’ some of your pre-tax salary. This can save you an astonishing 30-60% of the cost.

And don’t worry, there’s no extra cost or admin for your employerwe do all paperwork and payroll calculations.

What is salary sacrifice?

  • You sacrifice some of your pre-tax salary in return for an electric car hired by your employer. This reduces your tax liability and allows you to save an astonishing 30-60% of the cost.
  • These savings help make the switch to electric cars not only possible, but also attractive for many. As a result, more and more businesses are using salary sacrifice to attract and retain talent while supporting a greener future.

Salary Sacrifice: Lease vs Subscription

Benefits of a salary sacrifice electric car subscription vs a lease

Subscription salary sacrifice – the most affordable and flexible way to get an electric car.

How much would you save?

The Key Benefits for Employees

  • Save 30-60% on the cost of an electric car subscription
  • Enjoy the convenience of an all-inclusive package that includes insurance, breakdown, maintenance & servicing, VED and more
  • Choose from the largest range of subscription electric cars on the market
  • Enjoy total flexibility by avoiding a multi-year lease contract
  • Upgrade your car whenever you like

    Want to find out more?

    You can find more detailed information on salary sacrifice and the benefits of salary sacrifice subscriptions here.

    You can also find a step-by-step guide to getting set up for salary sacrifice with elmo here: https://elmodrive.com/business/how-it-works/

    Interested in signing up your company? Click the button below. 

    Discover our range

    What the elmo community is saying

    FAQs

    Who is eligible for an EV subscription on salary sacrifice with elmo?

    To be eligible to participate in the scheme, the employee must meet all the criteria below in addition to the driver eligibility requirements on the elmo website;

    • Minimum age of 25 (or 30 for some premium models);
    • Completion of 6 months’ service and outside of probation;
    • Minimum salary of £20,000 per annum after all salary sacrifice reductions; and full driving licence for a minimum of 3 years (5 years for some premium models), with no more than 6 current endorsement points for all drivers of the vehicle.

    The employer has ultimate discretion on which employees are eligible and employee eligibility will be confirmed at the point of the employee signing the Electric Car Salary Sacrifice Agreement.

    Which legal documents are needed to validate the scheme?

    There are three legal documents required in order to validate the scheme:

    • Admin Services Agreement. This grants elmo the right to manage the salary sacrifice scheme on behalf of the company;
    • Subscription Agreement. This sets out the terms and cost of each Subscription Order under which elmo provides the car to the company and must be signed by a company director; and
    • Electric Car Salary Sacrifice Agreement . This must be signed by the employee and the employer and sets out the terms on which the employer makes the car available to the employee, the nature of the benefit (electric car subscription), the salary sacrifice and that the employee agrees to be bound by the terms of the subscription.

    All documents are created and managed by elmo and can be e-signed. The employer will need to give consideration to whether it should update its privacy policy.

    If I'm registered to payroll employee benefits, can I do the same for elmo?

    If you’d prefer to payroll employees’ taxable benefits, this is also possible if you are setup to do this. If you want to payroll employee taxable benefits, and avoid P46 forms, you’ll need to register with HMRC before the beginning of the tax year so that payrolling can apply from the next tax year.

    Any Questions?

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