The business benefits of embracing EV salary sacrifice

Lash Saranna, co-founder and CEO of EZOO, explores the numerous business benefits achieved by implementing a salary sacrifice scheme for electric vehicles (EVs) – from cost savings and ‘stickier’ recruitment to better staff morale and improved sustainability performance.

As the UK edges ever closer to its 2030 ban on the sale of all new petrol and diesel cars, it’s safe to say that EV popularity is soaring. While previously considered a niche choice for early adopters or eco-conscious consumers, electric cars are now considered a mainstay of modern households.

Indeed, according to the latest monthly data (May ‘25) from the Society of Motor Manufacturers and Traders (SMMT), battery electric vehicle (BEV), hybrid electric vehicle (HEV) and plug-in hybrid electric vehicle (PHEV) registrations were up 25.8%, 6.8% and 50.8% respectively year-on-year. Petrol and diesel car sales, on the other hand, slumped -12.5% and -15.5%.

But while the potential to eliminate tailpipe emissions is the headline-grabbing benefit, switching to electric isn’t simply an environmental play. Alongside guaranteeing a smoother, quieter ride, state-of-the-art in-car technology, immediate acceleration and instant torque collectively guarantee a superior driving experience.

For those looking to make the switch, salary sacrifice offers a simple, cost-effective route. What’s more, if managed correctly, it can deliver countless benefits for businesses too – saving money, boosting employee morale and accelerating progress towards achieving corporate sustainability targets.

Saving costs, streamlining efficiencies

While onboarding any new employee benefit scheme can seem daunting, it’s important to remember that salary sacrifice shouldn’t cost you a penny. In fact, if managed correctly, it can actually save you money.

After all, with employees swapping part of their salary for a non-cash benefit, their taxable income is consequently reduced. As national insurance contributions (NICs) are calculated on this figure, businesses can quickly lower their costs.

What’s more, in terms of running costs, EVs are far more cost-effective than their internal combustion engine-powered counterparts. While charging costs are cheaper than filling up at the petrol station, servicing and maintenance costs are far lower too. For businesses subsidising commuting costs, going electric can streamline overheads.

Making roles ‘sticky’

It may seem obvious, but offering flexible, tax-efficient benefits through salary sacrifice can make roles highly attractive to prospect employees. This can help businesses to stand-out in a competitive job market, while simultaneously improving staff satisfaction and reducing turnover in the long-term.

Many businesses also report enhanced productivity and improved team morale from implementing and nurturing effective schemes. Indeed, with EVs in higher demand than ever before, tax efficient access to the latest electric models is considered a major employee perk.

Turning the dial on sustainability

With carbon reduction targets looming, sustainability is quickly rising up the corporate agenda. Whether tackling operational emissions, embracing renewables or adopting targeted ESG strategies, the pressure is certainly rising for UK businesses to act with purpose.

Fortunately, environmentally friendly programmes like cycle to work initiatives and salary sacrifice schemes can contribute to your business’s environmental goals, enhance your reputation and improve your corporate social responsibility score along the way. By offsetting carbon emissions, salary sacrifice can directly reduce your Scope 3 calculations – a major boost for your sustainability reporting.

The simple way to optimise your fleet

While just a fraction of new vehicle registrations are company car purchases, the UK’s grey fleet continues to grow fast. When it comes to reimbursing travel or running expenses, such as mileage, servicing or maintenance contracts, EVs are a sensible choice.

After all, powering an electric car is far more cost effective than fuelling an ICE vehicle, especially when charged overnight on the driveway. What’s more, servicing spend tends to be far lower too, with fewer moving parts resulting in less wear and tear.

By offering an EV salary sacrifice scheme, you can therefore easily streamline your grey fleet costs.

Making the transition count

At EZOO, we’re proud to be a leader in the salary sacrifice space. Compared to privately leasing the same vehicle, our salary sacrifice schemes offer savings of 20-60%, depending on salary, marginal tax rate and the BIK rate of the car. This makes EV ownership far more attainable, helping to reduce emissions while also enabling employees to benefit from the lower running costs of an EV.

There are numerous benefits to leasing through EZOO. For example, insurance, servicing, wear and tear and breakdown cover are all included in a simple monthly price. In addition, EZOO is the UK’s leading all-inclusive salary sacrifice scheme, with options starting from as little as £427 per month.

Most importantly, EZOO is completely brand agnostic. As such, you can specify your dream EV, rather than being limited by exclusivity agreements. This includes options from Porsche, Mercedes-Benz, BMW and Maserati, as well as Mini, VW, MG and many more.

EZOO also offers used car salary sacrifice, representing brilliant value, significantly lower prices and all the benefits.

Switching to EVs through salary sacrifice is smart, simple and forward thinking. It helps your team, your business and the planet. Most importantly, when you do it with EZOO, you get a personal, all-inclusive service that makes it completely hassle-free – the perfect way to boost morale, streamline costs and improve your sustainability performance.

For more information about EZOO, or the company’s fully flexible EV subscription and salary sacrifice solutions, visit www.ezoo.uk