The Department for Education has updated its guidance on Electric Vehicle (EV) Salary Sacrifice Schemes for academy trusts and colleges.
Salary sacrifice arrangements continue to grow in popularity as employers look for ways to enhance employee benefits while supporting environmental ambitions. The updated guidance helps trusts understand the considerations before introducing or reviewing a scheme.
A salary sacrifice arrangement allows employees to give up part of their gross salary in exchange for a non-cash benefit, such as leasing an electric vehicle.
Depending on individual circumstances and current tax legislation, these schemes can provide tax efficiencies while helping employees access electric vehicles at a lower overall cost.
The revised guidance provides additional information around governance, procurement, affordability, contractual arrangements and employer responsibilities.
Trusts should ensure that any scheme is affordable, appropriately governed and aligned with their financial responsibilities.
Whether your trust already operates an EV salary sacrifice scheme or is considering introducing one, now is a good time to review existing arrangements against the latest guidance.
Finance, HR and payroll teams should work together to ensure any scheme remains compliant and continues to deliver value for both employees and the trust.
Our payroll and education specialists can help trusts understand the financial and practical considerations before implementing or reviewing a salary sacrifice arrangement.
Source: Department for Education – Electric Vehicle Salary Sacrifice Guidance for Academy Trusts and Colleges.
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