Salary Sacrifice Charging for Company Car Fleets: The Ultimate Cost-Saving Strategy
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More company car fleets are going electric in 2025, but charging costs are creating a new challenge for fleet managers. While EVs promise lower running costs, many companies are finding that charging expenses can quickly add up - especially when employees rely on public charging networks.
The solution? Salary sacrifice charging for company car schemes. This approach transforms one of your biggest fleet operating expenses into a win-win benefit that saves employees money while reducing your administrative burden.
The Challenge of Charging a Company Car
Fleet managers know the numbers don't always add up the way they should. Public charging can often cost more than filling a petrol or diesel car, with rapid chargers reaching 76p per kWh. For a company car doing 15,000 miles annually, that's over £3,100 in charging costs.
Traditional approaches to company car charging can become challenging for everyone involved. Employees submit complex mileage claims, finance teams struggle with inconsistent charging receipts, and fleet managers can't get clear visibility on actual running costs. Meanwhile, employees without home chargers pay more for public charging, while their colleagues can enjoy cheap overnight rates if they have a driveway.
Traditional Fleet Charging vs Salary Sacrifice
Fleet EV charging solutions don't need to be complicated. Salary sacrifice charging works by allowing employees to pay for all their EV charging costs from their gross salary, before tax and National Insurance deductions. This can save employees 20-50% on the cost of EV charging.
Traditional Fleet Charging vs Salary Sacrifice Charging: The Key Differences
Fleet EV charging solutions don't need to be complicated. Salary sacrifice charging works by allowing employees to pay for all their EV charging costs from their gross salary, before tax and National Insurance deductions. This can save employees 20-50% on the cost of EV charging.
The contrast between traditional fleet charging and salary sacrifice charging is stark. With traditional approaches, employees pay for charging from their after-tax income, receiving no tax relief on these costs. This requires significantly more gross income to cover the same charging expenses, whilst creating complex administrative burdens through expense claims and reimbursements.
Traditional fleet charging offers no monthly savings to employees, who must pay out-of-pocket and wait for claim processing. For employers, this creates potential reimbursement liability alongside manual expense processing requirements.
Salary sacrifice charging transforms this entirely. Employees pay directly from their gross salary (pre-tax), benefiting from full tax and National Insurance savings. Where traditional charging requires substantially higher gross income to cover costs, salary sacrifice allows employees to pay just £100 directly from gross salary for the same charging. This delivers 20-50% savings on all charging costs with immediate effect and no upfront expenses.
The administrative advantages are equally compelling. Instead of complex expense management, employers benefit from simple monthly payroll deductions with automated HMRC-compliant processing. Crucially, salary sacrifice charging comes at zero cost to the business, eliminating reimbursement liability whilst dramatically improving the employee experience through immediate savings rather than delayed claim processing.
This means expensive charging costs can turn into affordable running expenses, making the switch to an electric car a no-brainer for more people.
The Numbers That Matter: Fleet Charging Cost Savings
The savings through salary sacrifice charging become obvious when looking at the full picture. Based on a Tesla Model 3, travelling 15,000 miles annually over a 4-year lease term, here’s what salary sacrifice charging means for two different scenarios for a higher-rate taxpayer (40% Income Tax and 2% National Insurance).
Estimated charging cost over 4 years: £9,720 (Public Charging) vs, £4,200 (Home Charging)
Total charging cost: £9,720 (Public Charging) vs, £4,200 (Home Charging)
Salary sacrifice (from employees gross salary): £11,664 (Public Charging) vs, £5,040 (Home Charging)
Net energy cost (added to net pay as a reimbursement): £6,765 (Public Charging) vs, £2,923 (Home Charging)
Savings: £2,955 (Public Charging) vs, £1,277 (Home Charging)
Figures based on Tesla Model 3 (3.6 miles/kWh efficiency), 15,000 miles per year, 4-year lease. Public charging assumes 77p/kWh. Higher rate taxpayer with 40% Income Tax & 2% National Insurance.
This shows that salary sacrifice EV charging delivers 30% savings on charging costs regardless of whether employees charge at home or use public charging networks. For higher-rate taxpayers travelling a lot, business fleet EV charging through salary sacrifice can save over £1,000 annually per vehicle.
See how much you can save by using The Charge Scheme’s online calculator. Simply put your car make and model, annual mileage, income and how you charge and get a personalised quote.
Employee Benefits That Drive Fleet Uptake
When charging becomes affordable, employees are more willing to choose electric vehicles for their company car.
Support Wherever They Charge
Salary sacrifice charging works for every employee, regardless of their living situation:
Home charging: Employees with driveways save on their home electricity costs
Public charging: Those without home chargers access 69,000 charging points through our app
Workplace charging: Office charging costs are covered through the same scheme
Simplified Monthly Process
Employees submit their mileage readings once per month through our employee portal. That's it. No receipts, no complex calculations, no waiting for reimbursements.
Tax-Efficient Savings
Unlike many employee benefits, salary sacrifice charging provides immediate, visible savings. Employees see the difference in their monthly charging costs from day one.
Supporting Different Fleet Sizes
Fleet salary sacrifice charging is designed to work with any existing company car scheme, regardless of size or provider. The Charge Scheme bolts directly onto your current arrangements without requiring changes to leasing contracts or fleet management processes.
Universal Implementation Principles
Adding The Charge Scheme to your benefit package is consistent across all fleet sizes and is built around four core elements.
Employee Onboarding
All employee communications, setup, and ongoing support are managed by The Charge Scheme team, reducing the burden on HR departments regardless of your fleet size.
Minimal Admin
As Europa Worldwide Group found with their 1,300+ colleagues across 29 global sites, "the seamless integration with our existing payroll processes created minimal administrative burden for our HR team."
Payroll Integration
The system generates payroll-ready reports and deduction files that work with any payroll system, providing the same streamlined process whether you have 10 vehicles or 1,000.
Zero Cost Setup
Shaw Education Trust, with over 2,000 employees, implemented The Charge Scheme as "a zero-cost addition to our benefits package," showing that the no-cost model is applicable regardless of organisational size.
Scalable Support Structure
While the core process remains the same, larger fleets benefit from additional support infrastructure. The Charge Scheme provides support throughout the implementation process, with detailed guidance for both payroll departments and employees.
Our system handles complex calculations automatically, tracking home, work, and public charging sessions to provide clear monthly summaries. This automated approach means the admin doesn't increase with fleet size.
Works With Any EV Salary Sacrifice Scheme
The Charge Scheme works with any existing provider or scheme structure. Whether your organisation uses salary sacrifice through The Electric Car Scheme or operates traditional company car arrangements, the charging benefit can be added without disrupting current operations.
For business without existing EV schemes, The Charge Scheme can be implemented alongside a new salary sacrifice arrangement, like The Electric Car Scheme, providing a complete solution regardless of starting point.
Tax Implications and Benefit-in-Kind Considerations
Understanding the tax position of salary sacrifice schemes is important for fleet managers. HMRC guidance on salary sacrifice arrangements confirms that properly structured schemes are tax-efficient for both employers and employees.
For Employers
No additional National Insurance contributions on salary sacrificed amounts
No benefit-in-kind implications when structured correctly
Reduced administration compared to traditional expense reimbursement
For Employees
Direct reduction in income tax and National Insurance
No impact on company car benefit-in-kind calculations
Simplified personal tax position
Compliance Considerations
Our scheme operates within HMRC guidelines, ensuring:
Proper documentation for all salary sacrifice arrangements
Accurate reporting for year-end processes
Beyond Cost Savings: Strategic Fleet Benefits
Company car charging benefits continue beyond the cost savings.
Increased EV Adoption Rates
When charging costs drop by 20-50%, employees are more likely to choose electric vehicles. This can speed up your fleet's transition to electric, helping your business meet sustainability targets sooner.
Reduced Admin Burden
Replace complex mileage claim processes with simple monthly deductions. Finance teams spend less time processing receipts and more time on strategic activities.
Enhanced Employee Satisfaction
Employees appreciate benefits that provide real financial value. Charging cost savings of £500-1,000 annually make a meaningful difference to household budgets.
Improved Fleet Data
Clear visibility into actual charging costs and patterns helps with future fleet planning and budgeting decisions.
Frequently Asked Questions: Salary Sacrifice Fleet Charging
What if an employee leaves the company?
There's no ongoing liability for employers. If an employee leaves, their salary sacrifice arrangement simply ends with their final payroll.
How do we handle mixed personal and business use?
Our system calculates the split based on mileage reporting. Employees submit monthly readings, and we calculate the appropriate business/personal proportions.
Can this work with our current lease provider?
Yes. This is an add-on benefit that works with any leasing arrangement or fleet management company. No changes to existing contracts are needed.
What about employees who only charge at home or use free chargers?
Employees who have minimal charging costs can only save against 7p per mile (the current government EV rate). Our team at The Charge scheme will ask you to confirm these details when you sign up.
Getting Started with Fleet Salary Sacrifice Charging
Implementing The Charge Scheme is straightforward and designed to minimise disruption to your current operations:
Phase 1: Setting up The Charge Scheme
Review current fleet charging arrangements
Configure integration with payroll systems
Prepare employee communication materials
Phase 2: Launch
Employee onboarding with app and card setup
First month of charging data collection
Initial payroll adjustments
Phase 3: Optimisation
Review employee charging patterns and savings
Request employee feedback and support
Reporting and analysis for fleet planning
In 2025, successful fleet management means more than just choosing the right vehicles. It's about creating an integrated approach that makes electric vehicles genuinely attractive to employees while reducing costs and admin for your business.
Fleet salary sacrifice charging delivers on all these objectives. By transforming charging costs from an employee expense into a tax-efficient benefit, you're removing one of the last barriers to EV adoption while providing real value to your team.
Companies like Europa Worldwide Group and Shaw Education Trust are already seeing the benefits: increased EV uptake, happier employees, and simplified fleet administration.
Ready to introduce a company car charging scheme? Book a call with one of our team to see how much your fleet could save!
Last updated: 08/09/2025
Our pricing is based on data collected from The Charge Scheme Calculator. All final pricing is inclusive of VAT. All deals are subject to credit approval and availability. All deals are subject to excess mileage and damage charges. Prices are calculated based on the following tax saving assumptions; England & Wales, 40% tax rate. The Charge Scheme is a product of The Electric Car Scheme™ – a trusted, trademarked brand dedicated to making electric driving more affordable. All rights reserved. The Electric Car Scheme is the trading style of The Electric Car Scheme Limited (company number 12646157, ICO number ZB030706, VAT number 439430195) and The Electric Car Scheme Holdings Limited (company number 13295877, ICO number ZB252629). Head office & registered address: The Shipping Building, 254 Blyth Road, Hayes, UB3 1HA. The Electric Car Scheme Limited provides services for the administration of salary sacrifice employee benefits. The Electric Car Scheme Holdings Limited is a member of the BVRLA (10608) is authorised and regulated by the FCA under FRN 968270, is an Appointed Representative of Marshall Management Services Ltd under FRN 667174, and is a credit broker and not a lender.
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