Salary sacrifice threshold warning from emissions testing change

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Leasing an Electric Vehicle with Salary Sacrifice: A Win-Win for Employees and Employers.

The Benefits of Salary Sacrifice for Electric Vehicle Leasing

Salary sacrifice is a popular benefit offered by many employers to their employees, allowing them to lease vehicles through their employer and pay for them with their pre-tax income. This benefit can be particularly beneficial for employees who are considering purchasing an electric vehicle (EV) but are unsure about the costs involved.

How Salary Sacrifice Works

  • The employee agrees to lease a vehicle through their employer, which is typically a company car. The employee pays a monthly salary sacrifice, which is deducted from their pre-tax income. The employer pays the vehicle manufacturer the monthly lease payments on behalf of the employee. The employee is not required to pay any additional fees or taxes on the vehicle. ### Benefits for Employees

    • Benefits for Employees

  • Tax Savings: By paying for the vehicle with pre-tax income, employees can reduce their taxable income and save on taxes. Lower Monthly Payments: Salary sacrifice can result in lower monthly payments compared to financing the vehicle through personal funds. No Additional Fees: Employees do not have to pay any additional fees or taxes on the vehicle, making it a cost-effective option. ### Benefits for Employers**

    • Benefits for Employers

  • Reduced Administrative Burden: Employers do not have to handle the administrative tasks associated with leasing vehicles, such as processing payments and managing paperwork.

    The Euro 6e-bis Emission Standard: A New Era for Electric Vehicles

    The European Union has set a new benchmark for reducing greenhouse gas emissions from new car and van registrations, introducing the Euro 6e-bis emission standard. This new standard will apply to all new car and van registrations from 2026, marking a significant step towards a more sustainable transportation sector.

    The Current State of Emissions

    Before we dive into the new standard, let’s take a look at the current state of emissions in the European Union. The Euro 6 emission standard, introduced in 2014, has been instrumental in reducing emissions from new vehicles. However, the current standard is not sufficient to meet the EU’s ambitious climate goals. The Euro 6 standard has led to a 12% reduction in CO2 emissions from new vehicles since its introduction.

  • The new standard sets a limit of 50 grams of CO2 per kilometer for all PHEVs, which is a 20% reduction from the previous Euro 6 standard.

    The Current Emission Standard: Euro 6d

    The current emission standard for cars and vans in Great Britain is Euro 6d. This standard sets out the maximum allowable levels of pollutants emitted by vehicles.

    The Impact of CO2 Emissions on Company Car Tax

    The increasing concern over climate change has led to a significant shift in the way companies approach their fleet management. One of the key areas of focus is the reduction of carbon dioxide (CO2) emissions from company cars.

    The DfT has also provided indicative examples of the potential CO ₂ increases.

    The Impact of Climate Change on the UK’s Road Transport Sector

    The UK’s road transport sector is a significant contributor to greenhouse gas emissions, accounting for approximately 28% of the country’s total CO ₂ emissions. The sector’s impact on the environment is a pressing concern, as climate change continues to pose a substantial threat to the planet. In this article, we will explore the effects of climate change on the UK’s road transport sector, highlighting the potential consequences of inaction and the opportunities for mitigation and adaptation.

    The Current State of the UK’s Road Transport Sector

    The UK’s road transport sector is a complex system, comprising various modes of transport, including cars, buses, coaches, and lorries. The sector is dominated by private cars, which account for approximately 70% of all road transport emissions.

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