Offset your increased employer NICs with EV salary sacrifice from Pike+Bambridge

Jack Cameron highlights how you can offset your increased employer national insurance contributions (NICs) with an EV salary sacrifice scheme from Pike+Bambridge.

Retaining employees is one of the toughest challenges facing businesses today, complicated by the 5.8% rise in the average salary and the recent rise in employers’ NICs.

In fact, one in four UK companies admit they can’t keep pace with growing salary expectations, leaving many at risk of losing key staff. The stakes are high. 

Amid this tougher landscape for businesses, the electric vehicle salary sacrifice scheme has emerged as a serious option for businesses. Let’s explore how you can use the EV salary sacrifice scheme to attract and retain top talent while staying financially smart. 

What is EV salary sacrifice? 

Similar to the longstanding “cycle to work” scheme, EV salary sacrifice for electric vehicles (EVs) allows you to pay for all costs associated with your car, before you pay tax or national insurance on that income. This typically saves 30-60% off the price of your next car, depending on your tax bracket. 

The employee selects an EV from a list of approved models, agreeing to give up a fixed portion of their monthly gross salary, equivalent to the lease cost. This sacrifice comes out of pre-tax income, meaning the employees pay less in income tax and national insurance.

Reduce your employer national insurance contributions

P+B are fortunate to support hundreds of businesses and business owners who we see work tirelessly every day and are given very little gratitude and support, and we can remember the collective disappointment following the announcement that employer NICs would rise in April. 

Since HMRC recognises the employee as earning a lower salary, both their NICs and the employer’s NICs are reduced. This translates to direct savings for your business, as employer contributions are calculated on the adjusted, lower salary.

Beyond cost savings, offering an EV salary sacrifice scheme strengthens your employee benefits package, helping you attract and retain top talent while promoting a greener, more sustainable workplace.

Ready to find out more?  

P+B were founded on one simple goal: To change the way people buy cars. 13 years and thousands of clients later, that’s still our goal. Our team of market experts can guide your employees through the move to electric, with minimal fuss and maximum enjoyment. This includes a personal delivery of their brand-new EV. We do the heavy lifting, so you don’t have to.

Want to find out more? Speak to the team at 0131 563 7493 or hello@pikeandbambridge.co.uk and we’d be happy to help.

This blog is one of a series of articles from our commercial partners. The views expressed are those of the author and not necessarily those of ICAS.