An EV Salary sacrifice scheme can be one the most cost effective, and easiest, ways to drive a brand new electric vehicle.
In 2020, the introduction of new benefit-in-kind (BIK) tax rates, which include 2% for battery electric vehicles (BEVs) in 22/23, make salary sacrifice perfect for drivers who want electric cars and to maximise the savings they could make.
Salary Sacrifice Explained...
Put simply, a salary sacrifice scheme is where you give up part of your salary and in return your employer gives you a non-cash benefit. For example childcare vouchers, cycle-to-work or increased pension contributions, and in our case, a brand new car.
For a fixed monthly cost, your brand new car comes with road tax, insurance, MOT, servicing and breakdown cover included, plus there is no deposit to pay so it really is the easiest way to drive a brand new car.
And what’s more, by choosing a new car through KINTO Salary Sacrifice there is then potential to save on your monthly NI and tax costs as your salary sacrifice deduction is taken from your gross pay.
As your employer is providing you with a company car under this scheme, you will be subject to company car tax as the vehicle will be available to you for private use. But by choosing an electric vehicle you will have plenty of options to provide you with some great savings since the announcement of 2% BIK!