Leaseplan says many businesses unaware of EV benefits as salary sacrifice scheme launches

Many UK HR bosses are unaware of potential savings on offer by offering EVs to their employees, despite being under pressure to reduce the cost of employee perks.

That’s according to Leaseplan UK, which has published research alongside the launch of its new SalaryPlan product.

It found that one in five HR bosses were unaware of the 0% BIK rate for EVs that came into force in April, resulting in savings not only for employees, but for employers too because of National Insurance. 

According to Leaseplan, 49% of those surveyed though an EV salary sacrifice scheme would add extra cost for their organisation, which it says is not the case.

Commercial director Chris Black said: “With cost savings and sustainability front of mind for both employees and employers, the change in taxation that was introduced in April means that EVs are now a really viable option for both. However, perceived cost remains an issue, and one we feel that we need to address.

“Through SalaryPlan, a premium four-door hatchback will cost the employee under £400 per month including servicing and insurance. What’s more, we also offer early termination protection from events such as maternity leave, redundancy and resignation. 

“This provides additional peace of mind, especially during this turbulent time. In addition, a home charge point is included with most vehicles making the switch to electric much easier.”

Leaseplan says there is clear motivation from both employees and employers to go electric, with more than half of employees showing an increased interest in EVs since March, and more than eight out of ten bosses saying it was important to show progress with corporate responsibility.

Black said: “We know that despite an increase in home working, employees still need transport options. Now more than ever, people are turning to private transport rather than public for their own safety. 

“That’s why we believe SalaryPlan is the ideal solution; not only to give employees options that suit their sustainable and cost-conscious requirements in this new world, but to offer employers cost savings and environmental benefits to add to their CSR initiatives.”