Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

BenefitsCompany carsLatest NewsPay & benefits

Company car schemes increasingly opt for EVs

by Adam McCulloch 18 Jul 2024
by Adam McCulloch 18 Jul 2024 Image: Shutterstock
Image: Shutterstock

A third of UK companies who intend to review their company car programme in the next 12 months plan to introduce more environmentally friendly vehicles into the schemes.

The latest Company Car Benefits Survey Report, by global advisory, broking and solutions company Willis Towers Watson (WTW), stated that the incentive for more sustainable vehicles is likely influenced by the more favourable tax band regime on low CO2 vehicles and the immediate tax write-down that can be claimed against electric vehicles.

The tax advantages of salary sacrifice schemes – one of the most cost-effective ways of acquiring an electric vehicle – are considerable because the rate of company car tax payable by employees on EVs is 2% in the current tax year and rises only to 5% by 2028. For more polluting vehicles such as some diesels the rates are as high as 37%.

Use of cars for work

How salary sacrifice electric cars can help staff lower costs

Law firm Stephenson Harwood offers electric cars to staff

EV salary sacrifice car schemes

Employees on such schemes also pay benefit in kind (BiK) tax on benefits they get from their employer on top of their salary. HMRC treats the benefit separately from staff’s salary, which means they pay the tax before it arrives in employees’ bank accounts. Any driver who uses a company car for personal use pays BiK tax out of their monthly wage.

Many companies are looking to introduce more environmentally friendly policies and behaviours while keeping in line with best market practices and reducing costs, stated the WTW report.

Almost half (49%) of organisations have introduced a ceiling on CO2 emissions, and 67% allow sales professionals and managers to select an electric or hybrid vehicle as part of their schemes.

Other measures taken include paying for electricity if the employee charges their electric vehicle at home (44%), financing the installation of a charging point at an employee’s home (38%), paying for electricity if an employee charges their car while on the road (57%) and supplying specific car charging points on-site at the workplace (64%).

A commitment to environmental sustainability is also reflected in benefit offerings that encourage eco-friendly behaviours among employees. About a fifth (19%) of UK organisations offer cars as a benefit under a salary sacrifice agreement, while 63% offer a bikes-for-work scheme according to WTW’s 2024 Benefits Design Practices report.

Lori Stokes, rewards data intelligence lead at WTW, said: “Many companies are aligning with more environmentally friendly behaviours and coupled with government tax relief schemes that help keep down costs, the shift towards electric, hybrid and low emission vehicles is a greener step towards achieving multiple company objectives.”

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

WTW surveyed 1,610 UK organisations across a broad range of industries about their company car benefit policies and practices between April 2023 and January 2024.

Latest HR job opportunities on Personnel Today


Browse more human resources jobs

Adam McCulloch

Adam McCulloch first worked for Personnel Today magazine in the early 1990s as a sub editor. He rejoined Personnel Today as a writer in 2017, covering all aspects of HR but with a special interest in diversity, social mobility and industrial relations. He has ventured beyond the HR realm to work as a freelance writer and production editor in sectors including travel (The Guardian), aviation (Flight International), agriculture (Farmers' Weekly), music (Jazzwise), theatre (The Stage) and social work (Community Care). He is also the author of KentWalksNearLondon. Adam first became interested in industrial relations after witnessing an exchange between Arthur Scargill and National Coal Board chairman Ian McGregor in 1984, while working as a temp in facilities at the NCB, carrying extra chairs into a conference room!

previous post
University admissions to drop personal statements
next post
Microsoft downgraded diversity schemes, ex-employee alleges

You may also like

How salary sacrifice schemes have sealed the deal...

18 Dec 2024

EV salary sacrifice schemes are now a prime...

2 Dec 2024

Electric car fleets in UK face tariff uncertainty

14 Nov 2024

Real-time reporting of benefits in kind to start...

30 Oct 2024

Salary sacrifice could face ‘crackdown’ in Budget

29 Oct 2024

EV salary sacrifice: the second hand option

3 Oct 2024

Salary sacrifice boosts electric vehicle take-up

9 Sep 2024

Salary sacrifice car schemes: A guide for employers

16 Aug 2024

How to develop an electric vehicle salary sacrifice...

12 Aug 2024

‘My salary sacrifice electric car is saving me...

12 Aug 2024

  • 2025 Employee Communications Report PROMOTED | HR and leadership...Read more
  • The Majority of Employees Have Their Eyes on Their Next Move PROMOTED | A staggering 65%...Read more
  • Prioritising performance management: Strategies for success (webinar) WEBINAR | In today’s fast-paced...Read more
  • Self-Leadership: The Key to Successful Organisations PROMOTED | Eletive is helping businesses...Read more
  • Retaining Female Talent: Four Ways to Reduce Workplace Drop Out PROMOTED | International Women’s Day...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+