Six out of 10 UK motorists are unaware of salary sacrifice with salsac giant Tusker claiming thousands of nurses, doctors, council workers and bank workers are “largely unaware they could save thousands of pounds in tax and National Insurance and in return drive a brand-new battery electric vehicle without having to fork out for a deposit, maintenance or even insurance.”
According to Tusker, salary sacrifice is the cheapest way to drive an electric vehicle, thanks to thanks to the way the scheme is set up to save NI and tax, as well as the Government’s introduction of 0% Benefit in Kind rate in 2020/21.
For drivers, the company said this represents an average saving of £220 per month from 2019 to 2020 when compared with retail deals, on top of savings they are able to receive through salary sacrifice, which amount on average to £100 per month saving on income tax and NI.
It added that range anxiety and lack of charging points are no longer the main barriers for mass adoption of battery electric vehicles, as the firm claimed three out of five motorists said they would drive an electric vehicle as their next mode of transport, but have felt that costs have been prohibitive.
“For too long, a lot of people have felt priced out of the EV revolution. This was evident in the people we spoke to as part of our survey, with the majority thinking battery electric vehicles were only for those that do little mileage or those on high incomes,” said Paul Gilshan, CEO of Tusker. “Salary sacrifice is nothing new but appears to be still an unknown to a lot of working people; it’s the solution to drive a new electric vehicle for both 20% and 40% taxpayers, but it seems the myth is that people think they can’t drive an EV unless they are on high salaries. Put simply, salary sacrifice is key to making battery electric vehicles affordable for the average British motorist and key to the UK significantly reducing emissions of transport.”