It’s never been easier to make the switch to electric

Making the switch to EV has never been easier, but misconceptions remain about incentives – particularly when it comes to salary sacrifice schemes. In this article, Lash Saranna, co-founder and CEO of EZOO, explains everything you need to know about the smart way to go electric.

In February 2025, more than one in four cars sold in the UK was a battery electric vehicle (BEV). If you add in the figures for plug-in hybrids (PHEVs) and self-charging hybrids (HEVs), around half of all new registrations were electrified.

Concerns about battery range and charging infrastructure are quickly becoming a thing of the past, as more drivers make the switch to electric and enjoy the everyday benefits of EV ownership. After all, the average BEV now offers around 300 miles of range and upwards – more than enough for the daily commute. What’s more, there are now 75,675 public chargers across the UK, including 7,478 ultra-rapid points – dwarfing the number of petrol stations by some margin.

Instead, cost is now widely seen as the biggest barrier to EV adoption. Indeed, while prices are falling, premiums for BEVs (against their petrol and diesel counterparts) sit at around 18%. This comes at a time when 91% of people are still grappling with rising inflation, economic instability and the ongoing cost of living crisis.

So, while EVs can save motorists money in the long term, pricing remains a significant consideration.

Simplifying spending

One of the most straightforward ways to embrace the electric revolution is by leasing a BEV through a salary sacrifice scheme – a benefit agreement between an employer and employee to reduce pre-tax income in exchange for a non-cash benefit. In this case, a brand new zero-emissions vehicle.

At EZOO, we’re proud to be a leader in the salary sacrifice space. Compared to privately leasing the same vehicle, our salary sacrifice schemes offer savings of between 30 and 60%, depending on salary, marginal tax rate and the BIK rate of the car. This makes EV ownership far more attainable, helping to reduce emissions while also enabling employees to benefit from the lower running costs of an EV.

There are numerous benefits to leasing through a provider such as EZOO. For example, servicing, insurance, wear and tear and breakdown cover are all included in a simple monthly price and customers have access to EVs from all major brands, including high-end manufacturers such as Porsche, Mercedes-Benz, BMW and Maserati, as well as mainstream options like Mini, VW, MG and many more.

Careful consideration

There are some important things to consider when specifying a lease vehicle, such as Benefit in Kind (BIK) tax and National Insurance Contributions (NICs). In April, NICs increased and the earning threshold for paying them decreased. Salary sacrifice can help to reduce the impact of these changes on your take-home salary by lowering pre-tax income.

It’s important to remember, however, that a company car also attracts BIK tax for the recipient. The amount of BIK employees pay is based on a number of factors including their income tax band, P11D value of the car, the car’s CO2 emissions and the government-set BIK rate. For example, a Tesla Model 3 in the 2024/2025 tax year has a BIK cost of around £13 per month.

Companies converting to EVs

For organisations looking to offer a cost-effective company car programme, partnering with a salary sacrifice provider has a number of advantages. First and foremost, employees can choose from a range of vehicles and make fixed monthly payments from their pre-tax income to make savings on their outgoings. Secondly, for companies, electric car lease payments can be counted as a deductible operating expense.

Better still, the company does not have to manage depreciation, capital allowances or fixed assets as the vehicle is simply returned at the end of the leasing term.

There’s never been an easier time to make the switch to electric. Through salary sacrifice, motorists can access one of the most cost-effective and hassle-free forms of BEV leasing. With tax savings, reduced running costs and a simplified all-inclusive model, working with an expert like EZOO can make the transition even simpler for drivers and employers