EVs as Company cars
Discussion
Hi all - is this going to be possible?
Some members of staff want to lease an EV through the company and pay for it via salary sacrifice. i.e. the member of staff chooses the car, the Company contract with the Provider, provide the car to the employee, and the employee has the monthly payment deducted by salary sacrifice.
Apologies if this is a bit of a noob question. As a company we've never had a company car scheme and we don't really want one now. However some senior members of staff like the idea of driving a Tesla with minimum financial risk to themselves.....
Some members of staff want to lease an EV through the company and pay for it via salary sacrifice. i.e. the member of staff chooses the car, the Company contract with the Provider, provide the car to the employee, and the employee has the monthly payment deducted by salary sacrifice.
Apologies if this is a bit of a noob question. As a company we've never had a company car scheme and we don't really want one now. However some senior members of staff like the idea of driving a Tesla with minimum financial risk to themselves.....
Countdown said:
Hi all - is this going to be possible?
Some members of staff want to lease an EV through the company and pay for it via salary sacrifice. i.e. the member of staff chooses the car, the Company contract with the Provider, provide the car to the employee, and the employee has the monthly payment deducted by salary sacrifice.
Apologies if this is a bit of a noob question. As a company we've never had a company car scheme and we don't really want one now. However some senior members of staff like the idea of driving a Tesla with minimum financial risk to themselves.....
This is possible and is growing.Some members of staff want to lease an EV through the company and pay for it via salary sacrifice. i.e. the member of staff chooses the car, the Company contract with the Provider, provide the car to the employee, and the employee has the monthly payment deducted by salary sacrifice.
Apologies if this is a bit of a noob question. As a company we've never had a company car scheme and we don't really want one now. However some senior members of staff like the idea of driving a Tesla with minimum financial risk to themselves.....
You need to find a provider like LEX (others out there as well).
Next they will be asking for charging points in the office .... I'm seeing a higher level of demand for this in my line of work.
TheRainMaker said:
At the moment, it’s the best way to do it.
Company wins, employee wins.
I'm not sure how the Company wins to be honest - yes there's Ers NI savings but there seems to be an awful lot of admin involved. Also what happens if the Employee decides to leave, or goes on maternity leave, or gets made redundant? Is the Employer lumbered with the car?Company wins, employee wins.
Who pays for the home charging points?
Things to be mindful of
- who carries the risk if they leave. The company owns the lease contract not the employee, so if the employee leaves the company need to keep paying. Some lease schemes help with this but like all things, there is a cost
- you need to decide on your company car mileage payments if they do manby miles on business. HMRC approve 4p per mile for an EV otherwise there can be BIK implications. If they do a lot of company miles they may find they're on the wring side of the sums.
- What will your policy be on mileage and excess mileage to any agreement you may have with a lease company
- your pension contributions may be linked to salary. You need to decide the what to do if thats how you work, they are sacrificing some of their salary so what happens if they pay say 10% of the salary into a pension when it changes? Can get more complicated if you offer matched contributions etc
- insurance, any driver, just them, any employee?
It's not trivial, but its also far from impossible. The easiest route is to go with a company that specialises in this to runt he scheme for you, but you may find their lease prices are higher than your employees think they will be based on a search of the internet, and thats partly down to the issues mentioned above.
- who carries the risk if they leave. The company owns the lease contract not the employee, so if the employee leaves the company need to keep paying. Some lease schemes help with this but like all things, there is a cost
- you need to decide on your company car mileage payments if they do manby miles on business. HMRC approve 4p per mile for an EV otherwise there can be BIK implications. If they do a lot of company miles they may find they're on the wring side of the sums.
- What will your policy be on mileage and excess mileage to any agreement you may have with a lease company
- your pension contributions may be linked to salary. You need to decide the what to do if thats how you work, they are sacrificing some of their salary so what happens if they pay say 10% of the salary into a pension when it changes? Can get more complicated if you offer matched contributions etc
- insurance, any driver, just them, any employee?
It's not trivial, but its also far from impossible. The easiest route is to go with a company that specialises in this to runt he scheme for you, but you may find their lease prices are higher than your employees think they will be based on a search of the internet, and thats partly down to the issues mentioned above.
Heres Johnny said:
Things to be mindful of
- who carries the risk if they leave. The company owns the lease contract not the employee, so if the employee leaves the company need to keep paying. Some lease schemes help with this but like all things, there is a cost
- you need to decide on your company car mileage payments if they do manby miles on business. HMRC approve 4p per mile for an EV otherwise there can be BIK implications. If they do a lot of company miles they may find they're on the wring side of the sums.
- What will your policy be on mileage and excess mileage to any agreement you may have with a lease company
- your pension contributions may be linked to salary. You need to decide the what to do if thats how you work, they are sacrificing some of their salary so what happens if they pay say 10% of the salary into a pension when it changes? Can get more complicated if you offer matched contributions etc
- insurance, any driver, just them, any employee?
It's not trivial, but its also far from impossible. The easiest route is to go with a company that specialises in this to runt he scheme for you, but you may find their lease prices are higher than your employees think they will be based on a search of the internet, and thats partly down to the issues mentioned above.
Thanks - those are all concerns that I had, (plus how I'm going to report these on P11d forms - who carries the risk if they leave. The company owns the lease contract not the employee, so if the employee leaves the company need to keep paying. Some lease schemes help with this but like all things, there is a cost
- you need to decide on your company car mileage payments if they do manby miles on business. HMRC approve 4p per mile for an EV otherwise there can be BIK implications. If they do a lot of company miles they may find they're on the wring side of the sums.
- What will your policy be on mileage and excess mileage to any agreement you may have with a lease company
- your pension contributions may be linked to salary. You need to decide the what to do if thats how you work, they are sacrificing some of their salary so what happens if they pay say 10% of the salary into a pension when it changes? Can get more complicated if you offer matched contributions etc
- insurance, any driver, just them, any employee?
It's not trivial, but its also far from impossible. The easiest route is to go with a company that specialises in this to runt he scheme for you, but you may find their lease prices are higher than your employees think they will be based on a search of the internet, and thats partly down to the issues mentioned above.
). It's just a PITA I don't need but the Company wants to burnish its green credentials......Countdown said:
I'm not sure how the Company wins to be honest - yes there's Ers NI savings but there seems to be an awful lot of admin involved. Also what happens if the Employee decides to leave, or goes on maternity leave, or gets made redundant? Is the Employer lumbered with the car?
Who pays for the home charging points?
Individual pays for the home charging points - but there is normally a negotiated discount - and my company offer loans for this.Who pays for the home charging points?
EV Home Charger from Pod Point with a discount of up to £XX.
•Tethered charger – staff price £579*
◦Cable attached (Type 1 - 4.8m or Type 2 - 7.5m)
Includes £350 OZEV grant and based on standard installation
Employees can access discounts on the EO Mini Pro electric vehicle charger as well.
Countdown said:
Thanks - those are all concerns that I had, (plus how I'm going to report these on P11d forms ). It's just a PITA I don't need but the Company wants to burnish its green credentials......
Plenty of providers like Octopus now offering this. Best bet is have a chat with them, get a proper breakdown and do your research. They take into account factors like insurance for leavers etc.). It's just a PITA I don't need but the Company wants to burnish its green credentials......https://www.octopusev.com/salary-sacrifice
SWoll said:
Countdown said:
Thanks - those are all concerns that I had, (plus how I'm going to report these on P11d forms ). It's just a PITA I don't need but the Company wants to burnish its green credentials......
Plenty of providers like Octopus now offering this. Best bet is have a chat with them, get a proper breakdown and do your research. They take into account factors like insurance for leavers etc.). It's just a PITA I don't need but the Company wants to burnish its green credentials......https://www.octopusev.com/salary-sacrifice
Meeten-5dulx said:
Individual pays for the home charging points - but there is normally a negotiated discount - and my company offer loans for this.
EV Home Charger from Pod Point with a discount of up to £XX.
•Tethered charger – staff price £579*
?Cable attached (Type 1 - 4.8m or Type 2 - 7.5m)
Includes £350 OZEV grant and based on standard installation
Employees can access discounts on the EO Mini Pro electric vehicle charger as well.
Thanks - that could be something we could do.EV Home Charger from Pod Point with a discount of up to £XX.
•Tethered charger – staff price £579*
?Cable attached (Type 1 - 4.8m or Type 2 - 7.5m)
Includes £350 OZEV grant and based on standard installation
Employees can access discounts on the EO Mini Pro electric vehicle charger as well.
What do you do when the Employee leaves mid-way through an agreement?
Andy_290 said:
I just got one implemented at work (via Tusker) whom have a lifestyle protection scheme built in which mitigates much of the risk (bad leavers/non-payers etc.)
I'd look to use someone like that to minimise risk to the business, plus the admin involved really isn't that much tbh
As it's deducted direct from salary how would you have a non-payer? Unless you mean at the end of the term for any additional mileage/damage etc? I'd look to use someone like that to minimise risk to the business, plus the admin involved really isn't that much tbh
Countdown said:
What do you do when the Employee leaves mid-way through an agreement?
My company, admittedly a large one, levies a fee on the leaver. For my Tesla it would be 6 months lease payments if leaving in the first year of the lease, 3 months if leaving in the second, and 1 month if leaving in the third or after. For non-electric cars, it's 2 months payment at any point in the lease.The returned cars then go onto a list that circulated in the company for people to pick if they want a car without waiting, and the monthly lease price is discounted to reflect the cars being 'secondhand'.
Scheme is administered by Arval (whom I can't recommend from an end user point of view, they may be awesome from a company PoV).
SWoll said:
Andy_290 said:
I just got one implemented at work (via Tusker) whom have a lifestyle protection scheme built in which mitigates much of the risk (bad leavers/non-payers etc.)
I'd look to use someone like that to minimise risk to the business, plus the admin involved really isn't that much tbh
As it's deducted direct from salary how would you have a non-payer? Unless you mean at the end of the term for any additional mileage/damage etc? I'd look to use someone like that to minimise risk to the business, plus the admin involved really isn't that much tbh
CheesecakeRunner said:
Countdown said:
What do you do when the Employee leaves mid-way through an agreement?
My company, admittedly a large one, levies a fee on the leaver. For my Tesla it would be 6 months lease payments if leaving in the first year of the lease, 3 months if leaving in the second, and 1 month if leaving in the third or after. For non-electric cars, it's 2 months payment at any point in the lease.The returned cars then go onto a list that circulated in the company for people to pick if they want a car without waiting, and the monthly lease price is discounted to reflect the cars being 'secondhand'.
Scheme is administered by Arval (whom I can't recommend from an end user point of view, they may be awesome from a company PoV).
There's a lot to get my head around tbh.
Countdown said:
SWoll said:
Andy_290 said:
I just got one implemented at work (via Tusker) whom have a lifestyle protection scheme built in which mitigates much of the risk (bad leavers/non-payers etc.)
I'd look to use someone like that to minimise risk to the business, plus the admin involved really isn't that much tbh
As it's deducted direct from salary how would you have a non-payer? Unless you mean at the end of the term for any additional mileage/damage etc? I'd look to use someone like that to minimise risk to the business, plus the admin involved really isn't that much tbh
SWoll said:
That's all covered as part of the agreement with the SS company, the same as has always been the case with more traditional company cars if they can't foist them on someone else in the business?
Indeed. The thing is these aren't company cars (apologies for a misleading thread title). Staff effectively want to PCP through the company so they can save on Tax and NI. Great for them, a ballache for us.....Countdown said:
SWoll said:
That's all covered as part of the agreement with the SS company, the same as has always been the case with more traditional company cars if they can't foist them on someone else in the business?
Indeed. The thing is these aren't company cars (apologies for a misleading thread title). Staff effectively want to PCP through the company so they can save on Tax and NI. Great for them, a ballache for us.....
Also the reason they will only be able to claim 4p per mile rather than 45p.
Staff cannot “PCP through the company” to avoid tax and NI. It’s a company car with the company bearing risks. For total risk free you can go through on.to (one month notice a d everything is included - insurance, maintenance and even charging with Instavolt and two other networks) but they have pretty limited choice and availability. And their fully inclusive nature makes them look expensive
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