Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Pros and cons of salary sacrifice for acquiring an electric company car

Best thing since sliced bread?

Key points

  • The OpRA tax rules do not apply at present to any vehicle where the carbon dioxide output of the car is less than 75GP/km.
  • For a salary sacrifice arrangement to work the employee’s contract of employment must reflect the change in the salary to which the employee is entitled.
  • There may be problems eg with the lease if the salary sacrifice arrangement is terminated early.
  • Possible reluctance on part of employees to charge their vehicles at home.

If readers spend any time reviewing either the fleet or human resources press on a regular basis they will be aware of the volume of articles appearing on electric cars and the offering of these using a salary sacrifice arrangement. These articles overwhelmingly set out the virtues of the use of salary sacrifice talking about the significant potential cost saving which are available.

To some it may...

If you or your firm subscribes to, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.

back to top icon