Car salary sacrifice scheme for employers

There is very little management that will be required on your end. You’ll need to let your staff know of the eligibility criteria for employees to join though, such as the fact that they cannot join the scheme if it reduces their cash earnings below the National Minimum wage.

It’s also common for employers to ensure only those employed on a full-time basis and those with a valid driver’s licence can access the scheme.

Your business will likely be eligible to join the Carwow Leasey Salary Sacrifice Scheme, and it won’t cost you anything to do so. Your employees will need to agree to a slight amendment to their contract once the scheme has been set up, but this isn’t likely to be a problem as there is a huge array of benefits for employees when joining the scheme, and it’s entirely optional.

If you’re unsure whether your business will be eligible, simply contact us and we’ll be able to assist you. 

No, there’s no maximum number of staff that can join the scheme. Your entire workforce can join and reap the benefits of EV salary sacrifice if they so wish.

After joining the scheme, your company will be enrolled for as long as you’d like, until you decide that you don’t want to be on the scheme anymore.

For your employees, the duration of their individual lease agreements tends to be for between two and four years, which they’ll agree to as part of their enrollment process.

The great thing about the Carwow Leasey Salary Sacrifice Scheme (well, one of the great things) is that we’ll handle the strain of managing the scheme on a day-to-day basis, including providing the cars, the leasing terms and the package, including insurance, maintenance and servicing programmes for the cars.

As we do most of the legwork, it’ll be a hassle-free process for you as the employer. All you’ll need to really do is work out which employees are eligible, make new employees aware of the benefits and how to opt in, and deal with any internal issues that may arise. Your HR team will need to update employment contracts too once the scheme is in place.

For each lease that your employees take out, once their contract comes to an end they’ll simply return the car and settle any excess mileage or damage fees, in the same way they would if it was a standard personal lease. They’re then free to either take another lease or organise alternative plans.

For your business, you can contact us for more information on your options if you’d like to end your EV salary sacrifice agreement.

If an employee leaves the company while they’re enrolled in the scheme and is in possession of a car, they’ll need to return the car and pay an early termination fee, which is deducted from their final pay packet. The cost of this will be based on how much they pay per month and how long is left on their contract. Any damage or excess mileage fees will also need to be paid for.

There may be some cases where their new employer will agree to transferring the lease into their name, and this is something we’d help you with if it happens.

The Carwow Leasey Salary Sacrifice scheme includes an early termination protection policy provided by Lex Autolease, and underwritten by Lloyds Banking Group. This helps minimise the financial risk to the business.

The most important piece of information you can pass on to your staff is the vast array of benefits that they are entitled to by joining the scheme. This should be done clearly and concisely, either by the board or the HR department.

Our specialist team can also help in this aspect. The eligibility criteria will also need to be shared with your staff.

If your business no longer wants to be part of the scheme, you can contact us and explain the situation. We’ll then be able to fully talk through the available options for you.

After one of your employees has chosen the electric car that they want, as the employer you will then lease the vehicle from the funder through a business contract hire agreement.

You will then deduct the cost of the monthly payments from the employee’s monthly salary and pay the funder.