Employer guide to salary sacrifice

Unlock flexible, affordable and zero emission driving as a benefit for your employees.

 

Save up to 60% on your electric car subscription with elmo’s fully-managed salary sacrifice service.

For many people, salary sacrifice is the easiest and cheapest way to switch to an electric car, with savings of 30-60% possible through the government scheme.

Our fully-managed salary sacrifice service makes it quick and easy to set up your company offering this amazing benefit to your staff.

What is salary sacrifice?

  • Employees sacrifice some of their salary in return for an electric car of their choice hired by their employer, typically saving 3060% of costs through income tax and national insurance.
  • Instead of subscribing directly and paying for the car from post-tax pay, the subscription cost is taken from pre-tax pay which reduces the employee’s tax liability and allows them 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 Employers

  • Attract and retain the best talent with a high value perk
  • Improve the environmental impact of your workforce
  • Enjoy total convenience with elmo managing the scheme set up and all payroll & HMRC admin
  • Avoid the risk and cost of early termination compared to a lease
  • Pay nothing extra – there is no net cost to your business for elmo operating the scheme

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
  • Read through our employee guide for more information

    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/

    Ready to get started? Just 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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