Do you know the advantages of Salary Sacrifice for Electric Vehicles?

9 October 2023

For Employees

By participating in a Salary Sacrifice Scheme for Electric Cars, employees can save money on the purchase or lease of a new, eco-friendly vehicle. They also benefit from lower tax rates, access to vehicles without the requirement for credit searches and improve their carbon footprint.

For Employers

Employers can demonstrate their commitment to sustainability and corporate responsibility through a Salary Sacrifice scheme for electric cars. They can also potentially save money on National Insurance contributions and other taxes.

Understanding Early Termination Insurance (ETI)

ETI is a type of insurance policy that covers the costs associated with ending a lease or finance agreement early. This can include payments due for the remaining term of the agreement, as well maintenance charges that may apply.

ETI is particularly important for employers offering Salary Sacrifice schemes, as these schemes typically involve long-term commitments with significant financial implications if terminated early.

The Importance of ETI for Employers

ETI can protect employers against unanticipated costs resulting from lease terminations due to unforeseen circumstances, which can lead to early termination of the lease or finance agreement.

The Coverage of ETI: Resignation, Accidental Death, Medical Grounds, Paternity Leave

Resignation	ETI can cover early termination costs resulting from employee resignations.
Accidental Death	ETI can cover early termination costs resulting from accidental death of the employee.
Medical Grounds	ETI can cover early termination costs resulting from the employee’s circumstances changing due to medical conditions, resulting in loss of a driver’s license.
Paternity Leave	ETI can cover early termination costs for the leased vehicle when the employee goes on paternity leave for an extended period.

Jackson Lee Underwriting have been providing ETI solutions for the past fifteen years. We have several solutions available for Leasing brokers and fleet management companies who are offering or looking to offer Salary Sacrifice schemes to their customers.