An Introduction to Salary Sacrifice: The Smart Way to Drive Electric

Salary Sacrifice schemes are becoming increasingly popular as a cost-effective way for employees to access new vehicles. At Grosvenor, we’ve developed a comprehensive Salary Sacrifice solution that offers significant benefits to both employers and employees, particularly for those interested in electric and ultra-low emission vehicles.

What is Salary Sacrifice?

Grosvenor’s Salary Sacrifice scheme enables employees to exchange a portion of their gross salary for a non-cash benefit – in this case, a fully funded, maintained and insured electric or plug-in hybrid company car.

The concept is straightforward but powerful: By exchanging part of their gross salary for an Ultra-Low or Zero Emission Vehicle (ULEV or EV), employees reduce their income tax and national insurance contributions. When choosing these environmentally-friendly vehicles, employees also benefit from very low Benefit In Kind (BIK) tax rates.

Comprehensive Coverage

Our Salary Sacrifice scheme includes everything needed for worry-free motoring:

Servicing & Maintenance
Risk Protection
Motor Insurance
Fleet Management
Accident Management
Licence Checks

This all-inclusive approach means employees can enjoy their new vehicle without unexpected costs or administrative burdens.

Key Benefits for Employees

Choosing a vehicle through Grosvenor’s Salary Sacrifice scheme offers numerous advantages:

1. Significant Cost Savings

The cheapest way to source a brand new ULEV or EV – up to 40% saving compared to a personal lease.

2. Fixed Cost Motoring

An all-inclusive package where oad tax, insurance, breakdown cover, service and maintenance are included in the price.

3. No Financial Barriers

There is no requirement for upfront deposits or personal credit checks, making it easier than ever to get behind the wheel.

4. Major Discounts

We apply significant fleet discounts across all vehicles in our range, ensuring you receive the best possible value on your new car.

5. Convenient Delivery

Once your vehicle is ready, we provide free delivery to your preferred location for a seamless handover experience.

6. Complete Peace of Mind

You are fully protected against life’s unexpected changes, with cover included for resignation, redundancy, maternity, paternity, long-term sickness, and dismissal.

7. Charging Solution Included

To make the switch to electric simple, home charge points can be included within the salary sacrifice scheme.

Advantages for Employers

Implementing a Salary Sacrifice scheme brings substantial benefits to employers as well:

Financial advantages – Class 1A National Insurance & Income Tax savings
Expert support – Full guidance, support and consultation from Grosvenor
Enhanced benefits package – An improvement to the overall remuneration package at no extra cost
Environmental leadership – Encourages uptake of ULEVs and EVs to reduce carbon footprint
Risk-free implementation – Complete protection against resignation, redundancy, maternity, paternity, long-term sickness and dismissal
Simplified administration – Minimal administrative burden
Streamlined billing – In-life recharges are charged direct to the employee

By offering a Salary Sacrifice scheme, employers can demonstrate their commitment to sustainability while providing a valuable benefit that helps attract and retain talent.

Home Charging Solutions

For employees transitioning to electric vehicles, home charging is an important consideration. Our scheme offers flexible options:

Home charge points can be included within the Salary Sacrifice scheme, allowing employees to benefit from the associated tax savings. We offer Hypervolt home chargers as standard for those who want the simplicity of including a charger within their Salary Sacrifice arrangement.

Alternatively, if employees prefer to arrange their own charge point installation, this can still be facilitated through the scheme, ensuring they continue to benefit from the tax advantages.

Why Choose Grosvenor?

Grosvenor is the UK’s most trusted Contract Hire, Fleet Management and Salary Sacrifice specialist, empowering businesses with bespoke mobility solutions in a changing world. We consistently deliver high-quality and dependable services designed to drive business forward.

Established over four decades ago, Grosvenor was the first leasing company to win all four major fleet industry awards in succession. This recognition stems from our innovative car and van funding products, exceptional service, and support for businesses transitioning to electric vehicles.

Our approach is summed up in our commitment to “Driving your business forward, together.”