Businesses need more education on EV cost savings, says LeasePlan

Almost half of businesses are unaware of the cost savings associated with electric vehicles (EV) on salary sacrifice schemes, according to LeasePlan.

The survey results show the leasing industry has more work to do in order to familiarise businesses about the benefits of switching to EVs.

Since the introduction of the 0% BIK rate for electric cars in the 2020/21 tax year, zero emission vehicles have become cheaper for both employee and employer.

Salary sacrifice schemes work when an employee sacrifices part of their gross salary before tax and National Insurance, in exchange for a brand new car.

Leaseplan’s survey found that almost two-thirds (62%) of businesses were looking to reduce the cost of employee benefits in order to save money following the coronavirus pandemic.

Four out of five respondents said they were currently reviewing their approach to company benefits.

Chris Black, LeasePlan’s commercial director, 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.”

He highlights that a Polestar 2 (pictured) could cost an employee less than £400 per month on LeasePlan’s SalaryPlan salary sacrifice scheme, which includes maintenance and insurance.

“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,” Black added.

More than half of employees (57%) have shown an increased interest in EVs since March 2020, and 86% of bosses stated that it was important to demonstrate their corporate responsibility progress, according to the leasing company’s research.

“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,” added Black.