THERE  is a surprising lack awareness of salary sacrifice car schemes amongst the Human Resources sector, which may be preventing employees enjoying the benefits of electric vehicles at low prices, believes EV leasing specialist, Fleet Evolution.

Twelve months ago, Fleet Evolution exhibited at the Chartered Institute of Personnel and Development (CIPD) Exhibition which is typically attended by around 5,000 HR decision-makers. A survey of visitors to the stand during the event revealed that only 15% were aware of salary sacrifice schemes for cars, particularly electric cars.

A year later and Fleet Evolution attended the equivalent CIPD event where a similar survey amongst HR decision-makers produced exactly the same results – just 15% of respondents had any knowledge of salary sacrifice schemes for EVs and their benefits for employees.

Fleet Evolution Managing Director Andrew Leech said: “We found the results astonishing, given all the publicity surrounding salary sacrifice schemes, particularly for EVs where the low levels of Benefit in Kind tax make them particularly attractive,” he said.

Leech said the Chancellor’s announcement in the Autumn Statement that BIK rates for EVs would go up by just 1% a year for three years from 2025/26, giving a rate of 5% by 2027/28, would do little to undermine the attractiveness of such schemes.

“The Chancellor gave us clarity on the Government’s position for the next five years at least, which is that they are committed to a low tax environment for EVs. This is great news for employees and employers alike, given the multiple benefits such a scheme can deliver – especially during the current cost of living crisis which has seen inflation hit 11%.”

Leech said that EVs provided through a salary sacrifice scheme could help employees not only cut their costs of mobility but overcome wellbeing issues surrounding the cost of living crisis at the same time.

“For businesses and staff that want to keep mobility costs under control at a time of rapidly spiralling costs, a salary sacrifice car scheme can provide even relatively low paid staff with a highly cost and tax-efficient electric vehicle. Such a scheme can also help employees tackle the anxiety and emotional stress caused by the prospect of living costs spiralling out of control and help contribute positively to their wellbeing in the current turbulent economic climate,” he said.

Salary sacrifice car schemes were an attractive employee benefit for lower paid staff who were not on the company car scheme. Leech added: “There seems to be a misconception that salary sacrifice car schemes are more suited to 40% tax-payers.  In reality, the ones who really benefit are those at the lower end of the pay scale as tax rules do not allow a salary sacrifice to take net pay below the minimum living wage.”