Electric company car leasing is growing exponentially in the UK since the government announced 0% Benefit-in-Kind tax for employees making the switch to electric company cars.
EVision Electric Vehicle Hire, the UK’s first and largest pure electric vehicle rental company has seen an increase in car rental of more than 25% since April 2020, when the new government changes came into effect.
Jessikah Lopez, EVision’s Sales Manager said, “Companies are looking to find a balance between keeping their staff safe during the current pandemic and ensuring their green credentials are met. This means encouraging employees to drive into the office should they need to, and avoiding public transport. However, ensuring corporate social responsibility is adhered to and reducing their carbon footprint is proving to be challenging for businesses. Driving an electric car tackles both of these issues.”
Now more than ever changes to Benefit-in-Kind tax have been a game changer for businesses and their employees, especially when financial strains are something of serious concern.
The new government incentive is enabling employees to pay for their electric company cars from their gross salary, saving on both National Insurance and income tax. Combining salary sacrifice and 0% Benefit-in-Kind can cut monthly leasing payments by up to 40%.
EVision is offering businesses the opportunity to lease an electric car with a hassle-free, no long-term commitment and low risk service.
“The advantages for the employer include the fact that all maintenance costs are covered by EVision.” Jessikah Lopez outlined. “What’s more is that we offer flexible leasing, meaning employers can lease from 3 months to 3 years and anything in-between. In addition, there is no risk to the employer, if an employee leaves the business or goes on maternity leave, the employer can simply hand the car back without penalty. Finally, employees will be able to use their electric car both at work and for private use, meaning happier employees and continued loyalty to the company.”
“From the employees’ perspective, they can drive a modern, hassle-free, fuel efficient car for much lower costs, as the car is paid for on gross salary, which makes it cheaper than driving a new car any other way.”
As businesses look for ways to save money and as employees look for cleaner, greener and safer ways to travel, the EVision offering of providing electric cars under a salary sacrifice scheme is even more meaningful.