This feature originally appeared in the April edition of Fleet News. Read this article in full
The fortunes of salary sacrifice schemes for cars has ebbed and flowed over the years to reflect changes in the tax climate, but experts believe they are now “perfect” to help employees move into electric vehicles.
The latest changes - introduced in 2017 by the Government under the Optional Remuneration Arrangements (OpRA) – reduced the savings available through the staff benefit in the majority of cases, therefore lessening the schemes’ appeal.
However, ultra-low emission vehicles were not affected and the introduction of new benefit-in-kind (BIK) tax rates at the start of this month, which include 0% for battery electric vehicles (BEVs), make salary sacrifice “effectively perfect” for perk drivers who want electric cars, says David Raistrick, senior manager at KPMG in the UK.