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

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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...

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