By Paul Homewood

If you wondered why EV fleet sales have been doing so well, look no further than the government approved Electric Car Scheme:

https://www.electriccarscheme.com/companies/how-salary-sacrifice-works-for-companies?utm_source=twitter&utm_medium=social&utm_campaign=audi-etron&twclid=251yc5ept0dup9zyjezblvw22x

In short, employees can lease an EV via the scheme, paying for it via salary sacrifice. This means that the employee saves the Income Tax and NI he would otherwise have paid:

https://www.electriccarscheme.com/companies/how-salary-sacrifice-works-for-companies?utm_source=twitter&utm_medium=social&utm_campaign=audi-etron&twclid=251yc5ept0dup9zyjezblvw22x

Salary sacrifices are perfectly legitimate, and commonplace – for interest employees might opt for higher pension contributions from his employer. However what makes the EV option attractive is the very low rate of Benefit in Kind taxation.

To be able to save 30% on the cost of lease payments is naturally hugely attractive to potential buyers, and is a subsidy paid by government.

via NOT A LOT OF PEOPLE KNOW THAT

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December 27, 2023 at 02:27PM