Want to slash your company’s carbon footprint without slashing the budget?
Every company wants to “go green.” The issue is that most green endeavors are extremely expensive and don’t make much of a difference. There’s one change that will both save you money and have an impact though:
It cuts emissions AND saves money.
Converting company fleets to electric vehicles using a salary sacrifice scheme is the single most carbon positive move UK businesses can do at the moment. Facts don’t lie…
EV scheme uptake is accelerating rapidly throughout the UK. Those businesses that adopt early will benefit most from tax savings, talent incentives and ESG benefits. Providers such as The Electric Car Scheme have made it ludicrously simple for businesses of all sizes to implement a scheme with minimal admin.
Here’s why this works so well…
Here’s what’s coming up:
- Why EV Schemes Are Booming Right Now
- The Carbon Numbers That Make The Case
- The Business Wins You Don’t See On The Surface
- How To Get Started Without The Headache
Why EV Schemes Are Booming Right Now
Ok…here’s the thing… Electric vehicle salary sacrifice schemes are no longer the new kid on the perks block. They are rapidly becoming the standard method of EV ownership for staff in the UK.
It’s been ridiculous. Fleet data analysis provider FleetWorld has reported 51% growth in EV salary sacrifice uptake during 20 24 alone. This is not a gentle incline. It’s a landslide.
So why are EV scheme adoption rates accelerating so quickly?
Three big reasons:
- Low Benefit-in-Kind tax — EVs are taxed at only 3-4% BiK compared to 37% for petrol equivalents
- Big employee savings — typical staff save 20-50% vs a personal lease
- Zero cost to the employer — most schemes are provided at zero net cost to the business
Add it all together. Then it’s not surprising that schemes like these made up around 40% of new EV sales in the UK last year.
Think about it:
Your team drives a shiny new electric car for way less than it retails. They pocket thousands. Your business saves NI. And your company scores ESG goals without writing one Sustainability cheque.
Pretty cool, right?
The Carbon Numbers That Make The Case
Now here’s where things get interesting…
Businesses don’t understand how large the carbon savings are when replacing petrol fleets with electric ones. The savings are significant.
Here’s one from the International Council on Clean Transportation. A mid-sized EV registered in Europe today emits 66-69% less than a comparable petrol car across its entire lifetime. This takes into account battery production, car manufacturing, fuel/electricity etc. – the whole life cycle.
Here’s that in perspective…
If you operate a fleet of 50 company cars, electrifying your entire fleet could save approximately 100 tonnes of CO2 emissions per annum. That’s 100 tonnes you can report on in your yearly sustainability document. That’s 100 tonnes that matters to your stakeholders.
And here’s the kicker:
Carbon savings increase the cleaner the UK grid becomes. The same EV will reduce its carbon footprint year on year as more renewable generation comes online. Try saying that about an Internal Combustion Engine vehicle.
The Business Wins You Don’t See On The Surface
EV schemes deliver much more than carbon savings. Consider this basket of commercial benefits.
Talent Retention Boost
Retaining talent is becoming increasingly difficult. That’s why every benefit you provide counts. Research across industries found that approximately 27% of employees feel having access to an EV salary sacrifice scheme makes them more likely to want to stay at their employer.
That’s a huge amount. Particularly when you factor in the cost of employee turnover. It can cost tens of thousands of pounds to recruit and train one mid-level employee who leaves the business. An EV scheme costs nothing and helps retain more of the people your business has already invested in.
Tax Efficiency For Everyone
Here’s one of those awesome situations where the employer AND employee both come out ahead:
- Employees pay less income tax and National Insurance
- Employers save on National Insurance contributions too
- Schemes are usually all-inclusive (insurance, road tax, breakdown cover, servicing all bundled in)
You also have the added incentive that benefit-in-kind rates on EVs are frozen low. Rates remain under 9% out to 20 29/30. Contrast that to petrol/p diesel cars at 37%……take a guess which ones companies will buy.
ESG Reporting Made Easy
Public reporting on environmental performance is being driven harder than ever by big business. They’re being asked by investors. They’re being told by regulators. And they’re realizing customers want companies that walk the walk.
An EV scheme delivers immediate, quantifiable carbon reductions you can talk about. Say goodbye to greenwashing. Bye-bye blurry ambitions. These are hard numbers linked to actual vehicles your employees drive daily.
How To Get Started Without The Headache
Getting started is easier than HR and finance teams think. Here’s how most companies do it in 3 simple steps:
- Pick a provider — Compare costs, vehicle choice, charging options and risk management
- Run the numbers — Use the provider’s calculator to show actual savings
- Communicate it well — Make sure employees understand what the savings are or employee participation will remain flat.
- Integrate with payroll — Make sure deductions work smoothly with existing HR systems
- Track and report — Monitor sign-ups, savings and carbon reductions over time
The biggest mistake businesses make? Treating the launch like a quiet HR memo.
Don’t do that.
You have to sell the scheme internally. Hold lunch and learns. Distribute the savings calculators. Enroll senior leaders first so they can evangelize. The companies with the highest EV scheme adoption rates treat the rollout like a marketing campaign.
Bringing It All Together
EV salary sacrifice schemes have gone from “nice to have” to one of the most environmentally and financially astute moves you can make as a UK business today. But just in case you need a quick-win round up:
- Massive carbon reductions — up to 69% lifetime emissions cut per vehicle
- Zero net cost to the employer when set up properly
- Big employee savings — typically 20-50% cheaper than private leasing
- Talent magnet — a perk that genuinely keeps staff longer
- Easy ESG wins — measurable, reportable, real
Firms sticking their heads in the sand will soon wake up to find competitors have 100 cars into an electric fleet… with happy staff and lower tax bills.
Don’t be in the business playing catch-up.
EV uptake statistics all shout the same message – momentum has arrived, tax incentives are secured until 2029/30 at least and the carbon savings are tangible. It’s time to act.
