19 Things You Didn’t Know About Salary Sacrifice: FAQs

Considering joining the scheme but still have some questions about how things work? Whether you’re an employer who is debating on whether or not to sign up or an employee trying to find out if getting an electric vehicle (EV) through loveelectric is right for you, we want to empower you to make the right choice by sharing some of the most frequently asked questions, so you can make an informed decision! 

1. Is it difficult to sign up? And is there a lot of admin?

No! The process of signing up is really straightforward. The first step is submitting an application to us (you’ll get a copy of the application form when you enquire on our website), you can fill it out online and it’ll take no more than 10 minutes.

Once you’ve been approved, we’ll send a final supplier agreement for you to e-sign and then we’ll send you a link where all the employees wanting a car can browse our range and select one. After this, all that's needed is for the employer to approve it, and that’s it!

2. Is this salary sacrifice scheme HMRC compliant?

Of course! HMRC state that the following:

“A salary sacrifice arrangement is an agreement to reduce an employee’s entitlement to cash pay, usually in return for a non-cash benefit."

If you’d like to learn more about this we recommend this resource from HMRC and if you have any more questions, don’t hesitate to contact us at hello@loveelectric.cars and we’ll assist you as best as we can! 

3. What cars are available?

We offer a broad variety of makes and models. As an independent broker, we provide access to all EVs on the market, catering to every budget. To see our current selection, log into our app or browse our range on our website if your company is not yet signed up. Our offerings are always expanding with new makes and models, so don't forget to check back when your dream car launches!

In addition to new models, our lineup now includes used electric cars, available through our unique reloved marketplace. These pre-owned EVs are not only quality-assured but also offer a more affordable path to electric driving via our salary sacrifice scheme. Opting for a reloved EV means enjoying cost savings while contributing to further CO2 reductions, as these vehicles are already manufactured and road-ready.

4. What happens if I leave my job?

Navigating changes in employment can be challenging but, with our market-leading Flexible Returns Options, managing your EV lease won't be. These options provide a seamless transition, no matter your situation:

1. Transfer to a new employer: We’ll first attempt to transfer your lease to your new employer, allowing you to continue enjoying your vehicle.
2. Novate within your current organisation: If transferring your lease to a new employer isn’t possible, the lease can be easily novated to another employee at your current place of employment.
3. Utilise our reloved marketplace: For early lease terminations, our reloved marketplace offers an efficient exit strategy. This innovative platform mitigates risk and enhances savings by making the vehicle available to our wider community.
4. Early Termination Protection: If the first options aren't available, our Early Termination Protection safeguards you and your employer against any unexpected early termination fees. In such scenarios, we only ask for one month's 'rent' as an administrative fee.

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5. What’s included in the price?

• Use of the car for the term
• Road Fund Licence (car tax)
• Routine maintenance and servicing costs
• Replacement tyres due to wear and tear, subject to terms and conditions
• Insurance (fixed for the period), subject to terms and conditions, if the company has opted to work with our suggested provider
• Accident management
• Breakdown assistance and recovery
• Early termination protection in certain circumstances, should the employee wish to return the car, subject to terms and conditions
• MOT (where relevant)

6. Do I have to pay a deposit?

No! You don’t need to pay a deposit to sign up, signing up to the loveelectric salary sacrifice scheme is completely free and there are no minimum obligations! You won't be charged if you don't utilise the service (although we'll try our best to find a car that suits you!). So why not join and discover how much money you can save every month?

7. Is the price for the term fixed or could it change?

Yes, both the rental and the insurance price is fixed for the term lease. However, as Benefit In Kind (BIK) rates will rise by 1% each year from 2025 to 2028, any lease that runs through these dates will be subject to a slight increase year on year. As the BIK rate for EVs is currently just 2% on the P11D of the vehicle, this increase will be very slight. If you like to learn more about BIK and how it works, click here. 

8. What happens at the end of the lease?

Once your contract has ended, the vehicle will be returned to us, as we don’t offer the option to purchase the vehicle at the end of the lease but you can choose to lease another vehicle from loveelectric if you’d like. 

When you return your car, it will be inspected in accordance with the BVRLA wear and tear guidelines. End-of-lease penalty charges may apply to any damage that does not fit within these criteria. (If you like to see what’s included in these terms, click here to visit the BVRLA website). Also do keep in mind that if you have exceeded the pre-agreed mileage you will have the opportunity to pay for this at the end of your lease. 

9. Is there an early termination charge?

There is an early termination charge which will be applicable in the following circumstances. These include if you: 

​​● Resign within 3 months into your lease;

● Decide to end the lease due to a change in circumstances;

● Breach the terms and conditions of your lease agreement through losing your driving licence on medical grounds only;

● Materially breach the terms of your lease agreement.

We know that the unexpected can occur, so we've designed our Flexible Returns Options to ensure your total peace of mind. Click here to learn about the options available to you if you have to end your lease early.

10. What about maternity, paternity or parental leave? 

If you go on parental leave you can choose to keep your vehicle, provided your pay stays over minimum wage during your leave. However, if your pay dips below minimum wage, you’ll have the choice of terminating your lease and returning the vehicle, although you will have to pay an administration fee for one month's rent to terminate your lease.

If you’d like to still keep your vehicle, you can do so for up to 12 months, rent free! However this will mean you are not protected by the early termination protection and do keep in mind this option is only available if your parental leave starts after 6 months of having your vehicle and when your monthly pay increases to above minimum wage, your rent-free period will end. Also, this ‘Instalment Protection’ won’t continue for a longer period of time than the original lease agreement. 

11. What happens in the case of a serious illness or accident?

 In the case of a long-term illness, resignation, death, pregnancy or losing a driver's licence due to medical grounds, your lease term can be ended. In these instances, the employer will be protected by any fees levied by the supplier of the vehicle, however the employee will need to pay one month’s rent as an administration fee. 

12. Will my company be eligible to join the scheme?

The general rule of thumb is if your company is profitable and has been trading for at least 2 years, you’ll most likely be able to join. However we do make some exceptions, so the best way to find out if your company is eligible for our salary sacrifice scheme is to send an enquiry and we’ll get back to you! 

13. Will I be eligible to join the scheme?

If you’re wondering if you would be eligible as an individual, here are some general requirements. In order to qualify, you must be:

• Aged 18-65 (maximum of 66 at end of term)
• A permanent employee of a company that has signed up to loveelectric's scheme 
• Paying income tax and national insurance contributions
• Able to afford the salary sacrifice (taking into account the national minimum wage and payable income tax)
• Not planning to retire or resign during the term of the scheme
• Not reaching retirement age during the term of the scheme (considered to be 67 for the purpose of this scheme)

14. Can another person be insured to drive the car? Can I add additional drivers?

Yes, you can add two additional drivers! They don’t have to be registered at the same address as you but they do have to be between the ages of 18-75, with a maximum of 78 years of age at the end of the term agreement. 

15. Can I apply if I’m paid hourly (PAYE)

Yes, but it depends on how much money you make. You will not be eligible if the salary sacrifice deduction lowers your 'take home pay' below minimum wage. However, there is a wide choice of EVs available at various price ranges, so there should be something to meet your needs while still staying within your budget!

16. Can I customise my car? 

Yes! When selecting your car on our app, you can choose to customise the exterior, interior and wheels as well any other additional extras specific to the make and model of your car. You can even add a personal number plate if you like, just let us know before you order your car!

17. Can I get a quote for a different mileage than what’s on your website?

While this isn’t available to view on the website, when you get access to our app you can utilise the livechat function to speak to one of our members of staff who will be able to give you a quote on a specific mileage.

18. Does loveelectric assist with home charging?

Yes! We're committed to offering the best home charging solutions to complement your electric vehicle experience. We work with Hypervolt, Egg and Rightcharge to bring you the best in smart charging to your home.

Hypervolt: Supercharge your savings

‍Our partnership with Hypervolt offers you a substantial saving of up to 50% on a fully-installed smart home charger. When you add this charger to your EV order, you could save approximately £500. This is made possible through our salary sacrifice scheme, allowing you to pay from your pre-tax salary. This not only reduces your Income Tax but also your National Insurance Contributions, making it a cost-effective solution for environmentally conscious driving.

Egg Charging: Smart and simple

‍Egg’s smart chargers provide a straightforward and efficient charging solution. Their basic package includes a fully installed charger, while their premium subscription, Egg Plus, offers enhanced smart charging capabilities. With compatibility across all electric car models, Egg ensures your vehicle is always charged and ready. Additionally, loveelectric drivers receive the premium Egg Plus service at no extra cost, which includes smart charging features for a simple monthly payment.

Rightcharge: Personalised Smart charging

‍Rightcharge offers a tailored approach to smart charging, helping you find the perfect charger and energy tariff. Their service includes quick installation, potential savings of £360 per year on your EV electricity costs, and eco-friendly charging options that can reduce your carbon footprint by 25%. Ideal for those who value flexibility, eco-conscious charging, and bespoke advice on smart chargers and energy tariffs.

19. What insurance is applicable to the scheme? And can I get a personal policy instead?

With a loveelectric lease deal there are two insurance options available, our partner Lloyd Latchford Group or your company's fleet policy, this is something your company will select for you. As for using a personal insurance policy - unfortunately you will not be able to change it to a personal policy. This is due to the fact the lease is a business contract hire, the employer is the customer of the lessor, rather than the employee, meaning the vehicles need to be insured in the name of the business and fully comprehensive rather than through a personal insurance policy

Don’t worry though! At the end of the term, if you have had no claims, LLG will write a note to confirm this which is widely accepted in the personal car insurance industry to protect your hard earned no claims bonus!  

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If you’re curious to see what cars we currently have in stock, why not browse our range of electric cars, or if you’d like to sign up, send an enquiry to get started today! If you still have unanswered questions and want to know if loveelectric is the right choice for you and your business, don’t hesitate to contact us at hello@loveelectric.cars and we’d be happy to help! 

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