Employee Salary Sacrifice for Electric and Hybrid Vehicles

A compliant route to market for blue light and associated public sector organisations

 

Implementing a salary sacrifice vehicle scheme for employees supports organisation sustainability goals and helps with recruitment and retention.

Employees can lease a brand-new car for a single salary deduction before tax and National Insurance, responsible only for the electricity or fuel - the lease typically includes fully comprehensive insurance, servicing and maintenance, road fund licence, tyres, breakdown cover and glass replacement / repair.

Key benefits for your organisation:

  1. Cost neutral
  2. Supports carbon neutral agenda
  3. Attractive staff benefit as part of overall remuneration package
  4. Employers retain a fixed surplus amount, incorporating savings in reduced NI and pension where applicable. Employees save tax and NI on ultra-low emission vehicles
  5. Service provider manages administration and HMRC compliance

About the Partnership with ESPO and NHS Fleet Solutions 

ESPO Staff Benefits 319 Lot 6 Car Leasing is a compliant route to market to carry out a direct award for Salary Sacrifice for Electric and Hybrid Vehicles.

Through our partnership with NHS Fleet Solutions we offer a simple and straightforward contracting process and governance arrangements, whilst supporting Net Zero commitments and demonstrating social value impacts.

Further information on key considerations including pensions, national minimum wage and lifestyle changes is provided by NHS Fleet Solutions, along with support in revising employee contracts.

Advantages:

  • All suppliers have undertaken a robust tendering and evaluation process
  • No employee deposits or credit checks
  • Policies provided, mitigating administration and risks
  • Secure, paperless order approval systems
  • Protection from early termination of leases
    Driver debts chased on employers behalf for two consecutive months
  • Tried and tested scheme which reinvests back into the blue light sector

 

FAQS

Is this open to all blue light organisations?

Yes, the ESPO Framework 613_23 Staff Benefits – Lot 6 Car Leasing is open for Direct Award by all blue light and associated public sector organisations.

 

How does a Salary Sacrifice Scheme affect pension contribution?

This depends on the pension scheme and therefore advice should be sought. We can supply some guidance to support this.

Would employee contracts require revising and reissuing for employees taking up the scheme?

Yes, this process is supported and administered by NHS Fleet Solutions.

 

Can employees add a home charging point to their order?

Yes, NHS Fleet Solutions provide the option for employees to add a 7kW home charging unit to their order, via one of the electric charging partners: Pod Point or Ohme. The cost of the unit is split over the lease length and added to the monthly cost.

Once the lease has ended, the charging point will not be removed and can continue to be used by the employee in the future.

 

Where a separate organisation / employer exists would we be able to use the scheme? E.g. OPCC / Police Force employee contracts require revising and reissuing for employees taking up the scheme?

In all likelihood, the answer will be Yes; NHS Fleet Solutions has worked with many organisations of this nature and there have been very few where this has not been possible. However, the organisation/employer will have to ensure they follow the appropriate governance requirements in place for the Organisation/Employer as appropriate. In terms of the Salary Sacrifice agreement this will have to be with the appropriate contracting authority for the organisation (which can vary from organisation to organisation).

More information

For access to the full online resource pack, which includes a webinar, guidance documentation, FAQs and more, please email our Fleet team (fleet.commercial@bluelight.police.uk).

 

Get in touch

For support with salary sacrifice contact:

BlueLight Commercial

Andy Brown

Head of Category

Click here to send email

NHS Fleet Solutions

Jason Coleman

Group Sales and Business Development Director

Click here to send email

We work with members to transform commercial procurement, resulting in a bottom line improvement to cost and time savings, and delivering a more sustainable future. Click here for information.  

Fleet

BlueLight Commercial can support everything involved in the lifecycle of an operational vehicle fleet. From initial procurement of vehicles, to in-car CCTV and ongoing purchases of fuel, windscreens and tyres and more, and finally through to end-of-life disposal.

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