Want to drive a brand-new electric vehicle for a more affordable price and lower monthly payments? Or perhaps you’re reading this guide having already signed up to an Xcite EV salary sacrifice scheme through your employer.
This guide outlines the benefits of our EV salary sacrifice scheme and how to apply, if you aren't already a part of our scheme.
Our salary sacrifice scheme empowers employees like you to lease an EV through a hassle-free process in conjunction with your employer. Salary sacrifice for electric vehicles presents an exceptionally cost-effective avenue for employees to access a brand-new electric car.
A salary sacrifice arrangement is an agreement between you and your employer to reduce your entitlement to cash pay in return for a non-cash benefit. There's a range of different benefits that can be offered via salary sacrifice but the most popular ones are:
Here at Xcite Salary Sacrifice our scheme offers you electric cars. Under our scheme, you will receive an insured and maintained leased electric vehicle in return for a portion of your monthly pay, equal to the cost of the lease and associated services. Depending on the exact deal and model, salary sacrifice can be between 30-60% cheaper than other finance methods.
By varying the terms and conditions of your employment, you will receive a lower salary but on the plus side, will save on income tax and national insurance contributions. The resulting difference in take-home pay will be significantly less than the original amount of salary sacrificed.
Salary sacrifice schemes offer considerable advantages to you as an employee. An Xcite EV salary sacrifice scheme offers the following employee benefits:
Employees will need to be over 18 years of age to qualify for vehicle insurance and so be able to participate in the scheme.
The scheme is open to full-time and part-time employees who satisfy the National Minimum Wage (NMW) threshold after the salary deduction has been calculated. We advise a minimum salary of £25,000p.a. to be eligible.
Employees must be able to commit to the full term of the lease contract. We recommend you consider carefully the likelihood of a change in circumstances, such as moving jobs, during that period to avoid possible early termination charges.
Your contract of employment must be for a longer duration than the salary sacrifice agreement. Employees on fixed contracts can still be eligible for the scheme provided the fixed-term contract is longer than the proposed salary sacrifice agreement.
You’re probably reading this guide because you have an Xcite Salary Sacrifice scheme already in place with your employer. However, if you haven’t, you can usually set up a salary sacrifice arrangement with your employer by changing the terms of your employment contract for a fixed period covering the length of the EV lease.
An EV salary sacrifice arrangement will not be permitted to reduce your cash earnings below the National Minimum Wage (NMW) rate. Procedures are put in place will cap salary sacrifice deductions and ensure NMW rates are maintained.
Refer your employer to our website to find out more about our EV salary sacrifice scheme.
Xcite is a leading provider of electric vehicle salary sacrifice deals, specialising in the administration and management of employee benefits. We've been in vehicle supply and fleet management for 20 years and so have a lot of experience in getting the best deals and supporting your drivers through the process so you can count on us for the best service
If you think your company could benefit from joining our scheme here at Xcite Salary Sacrifice then put them in touch with the team either by sending an enquiry or giving us a call on 01722 548 200.
For the answers to more detailed questions you may have, such as what happens in the event of an accident and what is covered by insurance, visit our FAQs page or contact the team on the details above.
