ECO For Businesses

Saving the planet is no longer a personal choice, it’s also a corporate responsibility with each business targeting move to become Carbon neutral.

Why Your Business Needs ECO

Make Use of Government Grants
Using the Governments “Salary Sacrifice Scheme” creates a £235 (23.5%) financial gain on every £1k sacrificed and importantly, allows the 40.5 tonnes of carbon emissions saved by driving of 12,000 personal or private miles in an EV by an employ, to be included in a business Carbon Neutral calculation.
Large Government EV tax breaks
Company car schemes were taxed out of existence by high “Benefits in Kind” Tax’s but for EV’s the tax is 1% in 2021 and 2% in 2022, with further increase unlikely as the Government seeks to hit the 78% reduction is carbon emission it has legally set the country as a target.

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The offering of EV cars via a salary sacrifice scheme, will provide a major employee benefit, whilst generate tax savings for the business that more than outweigh any potential costs. The emission savings from our “Grey Fleet” will help us drive towards carbon neutral status and meeting our corporate ESG targets.

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ECO Test Drive

Program
Why not allow employees to try driving an EV for a month before making the shift to EV and commit to a long-term lease? Eco’s test drive program allows employees to try EV’s in general and sample different EV models before making their choice.
Renting
Renting a Test Drive vehicle also allows employees to bridge any gaps between disposing of their old cars e.g., lease expiry and the actual delivery time given the long wait time for the most popular EV’s. The last thing you want is to convince somebody to make the change but then not be able to deliver their chosen EV for 6 months, which is an issue facing many lease companies. Test Drives are available for up to a maximum of 6 months per car.

Salary Sacrifice Scheme

Explained for Employers

Salary Sacrifice Scheme.

The company leases a car on behalf on an employee and deducts the cost e.g., £600 per month from their salary as a salary sacrifice, which at 42% tax would save £252 making effective lease cost £348 which is cheaper than an equivalent ICE car (Internal Combustion Engine) The tax saving depends on their pay level. Salary Band Tax saving Emp £15-50k 32.0% £50-100k 42.0% £101-120k 64.5% £121-150k 42.0% £150k plus 47.0%

Employers Saving

As a company we save the 13.5% Employer NI tax and can reclaim 50% of the 20% VAT paid on the lease by the employee. The employee is no worse off (in fact 42% better off) but the company can also make 23.5% or £232 per £1k sacrificed. A clear win:win.

Risk to the company?

The company is underwriting the lease, however working with our partner eco we can reduces this by;

1

10% lease turnover allowance
Eco will take 10% of leases back and resell them as “25% off Second-hand leases”, selling these to other employees as no cost to us.

2

Company saving fund
As stated, the Company saves 23.5% of the cost of the lease in NI/VAT and therefore even if 90% of staff terminated the lease early, because eco is guaranteeing to re-use the car as a second-hand lease discounted by 25%, this entire cost could be covered by the saving made. Staff turnover will clearly not be this high, but a provision should be made to cover staff turnover more than 10%.

3

Maintenance, break down and Insurance
These issues are the responsibility of the employee driving the car, but these issues are all covered by packages offered by our partners eco

4

Staff communications
eco provide a full tool kit of templated communication for staff and consultants such as EY who can assist with setting up the Salary Sacrifice Scheme.

Utilising the “Grey Fleet” to become Carbon Neutral

Move from ICE to EV

The company is driving the move of its employees from ICE cars to EV’s and can recognise the saving of 40.5 tons of CO2 emission per car against its wider carbon emissions and provides a key plank in our move to carbon neutral status.

Become Carbon Neutral

Carbon Neutral status is something that the business can use in all its promotional material for both attracting employees and customers.

Charging solutions.

ECO provides a free consultation service and free charging options.

1

Free home chargers
ECO has a network of installers and by using Government grants can offer all employees with suitable locations a “Free” home charger, with the employee just paying the installation cost. Research shows that this home charger will deal with 95% of charging needs.

2

Free Office chargers
Government grants will cover the cost of day/night chargers at the office.

3

Funded Rapid Chargers
ECO can source funding via UKEV network to install rapid charging solutions which are funded by charging users 25p per mile charged.