The Electric Car Scheme is a a salary sacrifice company car scheme.
What is a salary sacrifice scheme?
Under the salary sacrifice scheme Accurx will lease a car of your choice.
You agree to ‘sacrifice’ some of your salary to cover the cost of the lease, in return for getting the car of your choice.
What are the advantages? The fixed monthly repayments are taken from your gross salary (before any tax or National Insurance is paid on it). This reduces the amount of tax and National Insurance you pay.
However*,* a salary sacrifice scheme is seen as an employee benefit by HMRC so there is a benefit-in-kind (BIK) value. A BIK is taxable.
The good news is that the BIK is close to zero at the moment for electric cars.
Rates are:
When am I eligible?
Eligibility will be considered once you have passed your probation. Given the length and size of the leases, this will be at the discretion of your line manager to confirm you are eligible.
What is the key risk?
As leasing a car results in a material cost over a long term lease of 2-3 years, early termination can be a significant risk to the employee.
Below is a summary of early termination rules detailing who pay the remaining cost of the lease.
How do I get a car?