Salary sacrifice electric cars: Moore Kingston Smith can help your organisation access the significant cost savings

9 August 2022 / Insight posted in Article

Regardless of whether you are a small organisation looking to offer an electric car to one employee/director or a multinational looking to offer electric cars to all your staff, Moore Kingston Smith has a solution. We can help you implement a salary sacrifice electric car arrangement effectively that is acceptable to HMRC.

Your organisation may be at one of the following stages:

1. Interested in implementing an arrangement but needing to understand the detail around the full tax consequences for employee and employer.

2. Considering how to structure the arrangement to ensure maximum savings for your employees but also to limit costs for you as employer.

3. Needing help communicating the arrangement with your employees to gauge and generate interest amongst them.

4. Ready to connect with a lease car provider but unsure which lease car provider supports salary sacrifice arrangements.

5. A lease car provider is ready to provide your organisation with vehicles under salary sacrifice but you need assurance that the arrangement is effective and is acceptable to HMRC.

Moore Kingston Smith’s solution

Moore Kingston Smith can assist you throughout all stages of the process for implementing a salary sacrifice arrangement. We have created a salary sacrifice electric car solution to help your organisation implement a salary sacrifice arrangement acceptable to HMRC. This includes:

1. Detailed bespoke guide on the tax implications of a salary sacrifice electric car arrangement. This includes:

  • Employment tax and social security implications
  • Corporation tax and VAT implications

2. Detailed tax guide with FAQ and/or presentation to employees on how salary sacrifice works. You could use this guide to gauge interest amongst your employees.

3. Advice on how to structure the arrangement in way that is cost neutral for your organisation.

4. Helping you implement the arrangement by ensuring the salary sacrifice is set up in a contractual arrangement that will be acceptable to HMRC.

5. Providing recommendations on third party lease car providers.

6. Reviewing lease providers’ documentation to ensure it is HMRC-compliant and reviewing tax and NIC savings for the car selected by an employee.

7. Advising on payroll reporting implications, including voluntary payrolling of benefits.

8. Assisting with HMRC expense and benefit reporting (e.g. form P11D).

9. Advising on other tax-efficient electric car-related benefits, such as electric car charging and tax-free loans so your employees can install solar energy systems at home.

As a useful reminder, we set out here a broad overview of how a salary sacrifice electric car arrangement works.

If you would like to discuss your current situation and hear more about how we can help, please contact either Tim Stovold or John Williams.

How much could I save?

If you would like to know what the actual savings could be for you, please fill out the below form and a member of the team will contact you with the calculation results.