FLEET management and leasing specialist, Fleet Alliance, believes that SME firms can provide electric cars to all staff through a salary sacrifice scheme.
To make its point, the fleet provider is running a new campaign aimed at promoting the benefits of low-cost zero emission driving for all via a salary sacrifice arrangement by using the hashtag #ElectricCarsAreForEveryone.
Fleet Alliance says its electric car funding programme highlights that employee savings under a salary sacrifice scheme are generated by the reduction in gross salary, which produces reductions in income tax and National Insurance Contributions (NIC).
We see this as the democratisation of electric cars, making them available to everyone. Company car drivers are already making substantial benefit-in-kind tax savings by switching to electric cars. We want to offer the same benefits to non-company car drivers through our salary sacrifice product where the savings over personally leasing a car are significant.
From the employer’s side, there are also important advantages to advancing its environmental, Social and Governance agenda, as well as offering an appealing staff attraction and retention benefit in a period when the labour market is particularly tight.
Andy Bruce, Chief Executive of Fleet Alliance
According to the Glasgow-based fleet management provider, its scheme offers:
- a dedicated driver support team that helps drivers find special offers and available stock vehicles;
- no mandatory Early Termination Insurance;
- no minimum number of employees – so perfect for SME fleets;
- e-Fleet software to help manage the vehicles;
- competitive tendering via a panel of funders selects the most price competitive monthly rentals, with access to special offers.
How Does The Fleet Alliance Salary Sacrifice Offer Work In Practice?

To illustrate the savings available, Fleet Alliance cites the example of a 40% tax payer taking an electric MINI Cooper SE on its salary sacrifice programme. The example is based on a 36-month contract covering 5,000 miles a year.
If an employee was to lease the MINI personally out of post-tax earnings, the car would cost £643 a month, with extra to pay for any service or maintenance.
However, under the Fleet Alliance salary sacrifice programme, the same electric MINI would cost the driver just £356 a month, including all benefit in kind tax, servicing as well as maintenance – a saving of more than £280 a month, without taking into account any SMR costs. Over the three years of the agreement, the electric car salary sacrifice would save more than £10,000.
The Benefits In Detail
- A significant cash saving that goes beyond the monthly payments to include full service and maintenance, so there is no additional budgeting for the driver. The only cost is the electricity to charge the car
- No impact on the driver’s personal credit lines – the contract resides with the employer. Andy Bruce adds: “Given the current cost of living crisis, that is a significant additional benefit and provides the employee with additional financial flexibility.”
Salary Sacrifice Is Fastest Growing Funding Method
According to industry body the British Vehicle Rental and Leasing Association (BVRLA), salary sacrifice is the fastest growing funding method in the UK. The association says salary sacrifice fleets increased by 41.2% during Q 1 of 2022 reaching a total of 35,134 cars.
Fleet Alliance says it has over 100 customers taking its salary sacrifice scheme, but expected this number to double over the next 12 months.
It’s difficult not to see how this is a winner all round. Employers offer a benefit that is attractive and advances their environmental agenda; employees pay less to drive a modern and technologically advanced vehicle; and local urban air quality is improved thanks to zero emissions. Where’s the downside?
Andy Bruce

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