A new tax-efficient short subscription scheme for electric vehicles has been launched to target company employees.
The Electric Car Scheme has launched a new salary sacrifice product that offers vehicles on 12-month contracts, in partnership with car subscription firm Onto, which was launched by former Jaguar Land Rover product strategy and innovation manager Rob Jolly.
He said: “This partnership is an exciting proposition for employers and employees alike. As the shift to electric cars continues, we want to continue making electric cars accessible to all and provide customers with a cost-effective, hassle free, flexible experience that also makes them feel good about their impact on the planet.”
The new subscription model differs from traditional leases available through salary sacrifice, which have multi-year terms and typically lock out startups by requiring that any company using the scheme have traded for two years or more.
The Electric Car Scheme chief executive and co-founder Thom Groot said: “More than 80% of employees in the UK want their next car to be an electric car, and it’s only right that the government rebate for electric cars is made accessible to as many people as possible.
“Subscriptions have been a great way for people to try driving and owning an electric car. Now The Electric Car Scheme can help more people try electric car subscriptions and make this step as affordable as possible.”
People eager to get into an electric car without a huge upfront cost or long commitments can now get one via subscription for as little as £222 a month through their employers.
Salary sacrifice allows employees from participating companies to pay for leases or subscriptions with their pre-tax income, meaning they can enjoy savings of between 30 and 60%.