As an employee in 2022/23:
NIC Class 1
- You pay NIC if you earn more than £184 a week which is £797.33 per month.
- You pay 13.25% above this limit up to £967 per week and over this, you pay 3.25% NIC.
Income Tax for employees in 2022/23 in England and Wales:
- If you have the standard Personal Allowance, you pay 0% up to £12,570 pa
- You then pay 20% over your Personal Allowances up to £50,270
- Above this and up to £150,000, you pay 40%
- Above this, you pay 45% income tax.
As an employer in 2022/23:
The employer pays 15.05% Class 1 NIC on employees earnings over £170 per week with no upper limit.
Class 1A is assessable on certain benefits-in-kind, including a BEV at the rate of 15.05%.
Class 1A is assessable on certain benefits-in-kind, including a BEV at the rate of 15.05%.
CVM Group's Expertise
By using CVM Group's expertise in Salary Sacrifice schemes and working in collaboration with our partners in insurance and fleet management, we provide a complete solution framework to help steer employers through the processes and procedures with ease. All will be supported by external specialist tax advice from our preferred partner, to help our corporate customers take advantage of the incredibly generous tax incentives confirmed for such vehicles currently up until 5th April 2025 if you structure the scheme effectively with our help.
By using this tax incentive the UK Government has created, a typical basic rate tax payer can save over 30% in income tax and NIC savings by adopting our recommended Salary Sacrifice approach, rather than leasing a car personally out of taxed income. Higher rate taxpayers could save even more.
The same applies for Scottish employees and employers albeit their income tax rates are typically higher, allowing them to save even more.
iLease® Electric Salary Sacrifice is designed to help employers to effectively boost their employees spending power, allowing some to have a new car for the very first time; or an upgraded new or used car, perhaps for a spouse or partner of the employee. As a benefit-in-kind, a tax saving BEV will be a hugely appreciated benefit for many employees. Our lease terms can be two or three years, enabling employees to gain maximum advantage of the current tax saving, which are confirmed until the 5th of April 2025.
iLease® Electric Salary Sacrifice is designed to help employers to effectively boost their employees spending power, allowing some to have a new car for the very first time; or an upgraded new or used car, perhaps for a spouse or partner of the employee. As a benefit-in-kind, a tax saving BEV will be a hugely appreciated benefit for many employees. Our lease terms can be two or three years, enabling employees to gain maximum advantage of the current tax saving, which are confirmed until the 5th of April 2025.
In order for employees to benefit, we work with your employer to help them set the terms of the scheme. Each employer is different, but many of the basics of the schemes will be common. We put the employer in control of designing the scheme that works best for their employees. This ensures the employer is always in control of each decision to add a new vehicle, insure it etc. Each new business lease will be sanctioned via the company.
One huge advantage of this approach is that we take no account of the employees credit history. Of course, you must take into account their earnings and circumstances before any Salary Sacrifice decision is finalised. For example, for the lowest paid employees, you cannot allow them to dip below the National Minimum Wage. But where it makes sense, you will be able to use this scheme to benefit staff who would not otherwise be able to access the car they really want, whether new or one of our approved used cars.
In essence, by allowing your employees access to this scheme, you will be making a material improvement in their effective spending power in the vast majority of cases, as they will be paying less tax and NIC.
However, it is the employee's choice as to whether they sacrifice part of their salary in exchange for the car of their choice (within the employers agreed framework).
With the iLease® Electric Salary Sacrifice scheme, employees can choose any new or used BEV - and we have a huge choice and some amazing deals.
One huge advantage of this approach is that we take no account of the employees credit history. Of course, you must take into account their earnings and circumstances before any Salary Sacrifice decision is finalised. For example, for the lowest paid employees, you cannot allow them to dip below the National Minimum Wage. But where it makes sense, you will be able to use this scheme to benefit staff who would not otherwise be able to access the car they really want, whether new or one of our approved used cars.
In essence, by allowing your employees access to this scheme, you will be making a material improvement in their effective spending power in the vast majority of cases, as they will be paying less tax and NIC.
However, it is the employee's choice as to whether they sacrifice part of their salary in exchange for the car of their choice (within the employers agreed framework).
With the iLease® Electric Salary Sacrifice scheme, employees can choose any new or used BEV - and we have a huge choice and some amazing deals.
With insurance, we have our own solution which is renewed annually with a quotation in advance. The employee pays for the insurance too via their Salary Sacrifice scheme. The cost of the car, insurance and maintenance can all be paid out of gross income, in effect and not taxed to income. With the exception of the BEV BIK which is taxed at 2% of the P11D.
We can even introduce you to our preferred partners to enable you to ensure you are “fully charged” whether at home, your office or on the road. They can help set up your business to accommodate EV charging at work. They can also consider your energy usage today and introduce you to energy savings; micro-generation of electricity using photo voltaic panels or roof tiles, green technologies and green energy.
CVM Group can also provide fleet discounts on vehicles and maintenance costs, all negotiated on your behalf and included in the iLease® Electric package.
CVM Group can also provide fleet discounts on vehicles and maintenance costs, all negotiated on your behalf and included in the iLease® Electric package.
BEVs are fast becoming popular as company cars, due to employee driving patterns evolving in the last 12 months, generally to lower mileage and shorter journeys and with the savings to be made, it's the most cost-effective way of driving a brand-new EV.
For more information, please do not hesitate to contact us.
For more information, please do not hesitate to contact us.
Our fully maintained contracts include:
- A brand-new or used BEV car for 2 years or 3 years
- Comprehensive Breakdown Cover
- Tyre Replacement/Repair
- Fully comprehensive Private and Domestic or 'Business' Insurance
- All Servicing & Repairs
- Annual Road Fund Licence for the contract term
