As the UK government continues to push for greener initiatives, electric cars have become increasingly popular. The main attraction for both employers and employees is the EV salary sacrifice scheme.

By participating in an EV salary sacrifice scheme, both employers and employees can enjoy cost savings and contribute to environmental sustainability along the way! This article will delve into the specifics of how these schemes operate, the financial advantages they offer, and the broader positive impacts on sustainability.

We will provide a comprehensive overview of the mechanics behind EV salary sacrifice schemes and discuss the various ways in which they benefit both employees and employers, ultimately supporting the transition to a greener future in the UK.

What is an EV Salary Sacrifice Scheme?

An EV salary sacrifice scheme is a flexible financial arrangement that permits employees to lease an EV through their employer. The key feature of this scheme is that the leasing cost is deducted directly from the employee’s gross salary before tax and National Insurance contributions are applied. By reducing the taxable income, employees can benefit from substantial savings on both tax and National Insurance payments. This arrangement not only makes EVs more affordable for employees but also aligns with governmental incentives to reduce carbon emissions.

For employers, implementing an EV salary sacrifice scheme can lead to cost efficiencies as well. The reduction in National Insurance contributions on the employee’s reduced gross salary can offset some of the costs associated with administering the scheme. Additionally, such programmes can enhance the overall benefits package offered by the employer, making the company more attractive to prospective and current employees.

Benefits for Employees

1. Tax and National Insurance Savings

By opting for an EV salary sacrifice scheme, employees can benefit from reduced tax and National Insurance contributions. Since the lease payments are made from the gross salary, the taxable income decreases, resulting in substantial savings.

2. Access to Premium EVs

Leading salary sacrifice car schemes often provide access to high-end electric vehicles that might be otherwise unaffordable. Employees can enjoy the latest EV models with advanced features, contributing to a more enjoyable and environmentally friendly driving experience.

3. Lower Running Costs

Electric vehicles typically have lower running costs compared to traditional petrol or diesel cars. With savings on fuel, reduced maintenance costs, and exemptions from certain charges (such as London’s Congestion Charge), employees can enjoy significant long-term financial benefits.

4. Environmental Impact

Driving an electric vehicle reduces the carbon footprint and supports the UK’s goal of achieving net-zero emissions by 2050. Employees can take pride in contributing to a cleaner environment.

Benefits for Employers

1. Attract and Retain Talent

Offering an EV salary sacrifice scheme can enhance an employer’s benefits package, making it more attractive to potential recruits. It also helps in retaining current employees by providing them with valuable and cost-effective benefits.

2. Cost Neutrality

For employers, EV salary sacrifice schemes are often cost-neutral. The savings on National Insurance contributions can offset the administrative costs of running the scheme, making it an economically viable option.

3. Corporate Social Responsibility (CSR)

Implementing an EV salary sacrifice scheme demonstrates a commitment to sustainability and corporate social responsibility. This can improve the company’s public image and align with broader environmental goals.

4. Employee Well-being

Providing employees with a cost-effective means to drive electric vehicles can contribute to their overall well-being. With lower running costs and the convenience of driving a new EV, employees may experience reduced financial stress and increased job satisfaction.

How to Implement an EV Salary Sacrifice Scheme

1. Assess Feasibility

Evaluate whether an EV salary sacrifice scheme is feasible for your organisation. Consider the number of interested employees, potential cost savings, and administrative requirements.

2. Choose a Provider

Select a reputable provider that offers a range of electric vehicles and comprehensive support services. Ensure they can handle the administrative tasks and provide a seamless experience for both the employer and employees.

3. Communicate the Benefits

Educate your employees about the advantages of the scheme. Highlight the financial savings, environmental impact, and access to premium EV models. Provide clear guidance on how they can participate in the programme.

4. Monitor and Review

Regularly review the scheme’s performance to ensure it continues to meet the needs of your employees and the organisation. Gather feedback and make adjustments as necessary to enhance the programme’s effectiveness.

Conclusion

The EV salary sacrifice scheme offers a win-win situation for both employers and employees in the UK. With significant financial savings, access to premium vehicles, and a positive environmental impact, it’s an attractive option for forward-thinking organisations. By implementing such a scheme, employers can demonstrate their commitment to sustainability and employee well-being, while employees can enjoy the benefits of driving an electric vehicle at a reduced cost.

Adopting an EV salary sacrifice scheme is a step towards a greener, more sustainable future for everyone.

Salman Safdar, subject matter expert at Ansible Motion

The automotive and motorsport industries have long been driven by the relentless pursuit of performance, efficiency and innovation and as these sectors evolve, so do the tools and technologies that support them.

Among these, Driver-in-the-Loop (DIL) simulation stands out as a transformative force, offering unprecedented opportunities for development, testing and optimisation. From motorsport through to broader automotive OEM applications, the integration of advanced simulation tools is undoubtedly accelerating progress and redefining the boundaries of what’s possible.

At the heart of all effective simulation is the interaction between humans and technology. High-fidelity simulators provide drivers with realistic feedback that closely matches what they would experience in the real world – an approach that’s vital for optimising performance and gaining that all-important competitive edge.

The ability to simulate multiple racing cars and series underscores the versatility of modern simulators. By allowing extensive and varied test programs to be conducted in a controlled environment, teams can make quick setup changes, explore various chassis configurations, and understand track conditions without the expense and time constraints of on-track testing. This not only strengthens the collaboration between drivers and engineers but also enhances the overall development process.

Only recently, topflight motorsport teams Penske Autosport and Honda Racing Corporation USA (HRC) announced their respective investments in DIL simulation – with HRC upgrading its simulator in time for this year’s Indianapolis 500.

Capable of replicating the current Dallara-Honda Indy car, Acura ARX-06 hybrid GTP machine and a variety of Honda and Acura concept racing vehicles, Ben Schmitt, head of the Vehicle Performance Group at HRC US explains in the firm’s official press release: “The new simulator is superior in every way to our original DIL simulator. The vehicle physics models have continued to evolve from the original simulator, including the tyre models, and our data acquisition capabilities are exponentially higher than previously. The new motion platform, cockpit and vision systems create a vehicle dynamics experience for the drivers that is our closest recreation yet of real-world conditions.”

Realism is also key for those competing in the FIA ABB Formula E Championship – providing a data-rich environment where drivers can learn track layouts, optimise energy management strategies, and experiment with different race scenarios.

When it comes to gaining a competitive edge – on and off the track – engineers and drivers are looking for tools they can trust, and DIL offers the ability to replay and analyse multiple scenarios repeatedly, via a truly immersive experience that mirrors real-world conditions. However, engineers also need the capability to connect with a vehicle’s onboard powertrain ECUs via Hardware-in-the-Loop (HIL) and Software-in-the-Loop (SIL) systems – integration which facilitates the validation of critical components such as torque maps and electro-mechanical driver controls, ensuring that both the hardware and software are finely tuned before hitting the track.

One of the standout features of contemporary simulation environments is their ability to integrate with other advanced tools such as engineering-grade visual simulation environments – crucial for teams that need to adapt quickly to changing conditions. For example, there’s no need to wait for a real rainstorm because weather variations can be conjured up with the touch of a button; multiple tyres can be driven in rapid succession; a virtual racetrack can even be set up to loop one particularly critical track segment continuously.

While motorsport often leads in adopting cutting-edge technologies, the benefits of simulation extend well beyond the circuit. Automotive manufacturers are increasingly leveraging simulation to enhance vehicle development processes, reduce costs, shorten development cycles and reduce the environmental impacts inherent in the traditional build-and-test approach.

As the automotive and motorsport industries continue to evolve, the role of simulation will only become more critical thanks to its ability to provide a controlled, repeatable, and data-rich testing environment that is flexible as well as sustainable.

Whether it’s mastering the intricacies of a demanding street circuit or refining the dynamics of a new road car, simulation offers unparalleled opportunities to innovate and excel. As we look to the future, the seamless integration of these tools will undoubtedly expedite progress and set new standards for excellence in both motorsport and automotive development.

By David Wilson, Business Development Advisor, NEOL Copper Technologies Ltd.

As road transport companies implement their environmental, social, and governance (ESG) strategies to ensure they are contributing positively to the planet and society while also being run ethically and transparently, they are faced with a conundrum.

With increasing regulatory and social scrutiny on carbon emissions, the transportation industry which is the second largest (20%) contributor to carbon emissions worldwide, faces growing pressure to meet the near-term net-zero targets, requiring an immediate move to being more sustainable.

The industry has recently undergone significant changes that have impacted the cost of running a successful business. Factors such as high fuel costs, increased labour expenses, and maintenance costs, as well as excessive costs to renew the fleet, have all contributed to this. Additionally, businesses now need to consider how to incorporate the future of electric and autonomous vehicles.

The future of electric vehicles

ESG strategies such as investing in fuel-efficient, low-emission technologies and adopting alternative sustainable fuel sources are essential to reduce carbon emissions, air pollution, and preserve natural resources, while protecting the industry’s long-term viability.

In order to make the industry more sustainable electric trucks will need to play a significant role. The migration to electric trucks is also an option for the fleet manager but there is presently a narrow choice of vehicles, an associated high procurement or lease cost, and a lack of public charging infrastructure.

Most commercial vehicle OEMs (original equipment manufacturers) now offer a range of electric trucks that are specifically designed for zero-emission deliveries. However, the use of heavy-duty electric trucks for long-range transport is not feasible yet, mainly because the batteries and charging power are insufficient. The large-scale adoption of electric trucks is going to take time, and it may not be until 2035 – emphasizing that the electrification of the trucking industry is around 10 years behind passenger cars in terms of electrification.

Transitioning away from fossil fuel is a complex challenge for fleet managers. It will take time for a complete shift of the 600,000+ heavy good vehicles currently navigating the UK roads to electric power. To address the issue promptly and enhance the fuel efficiency and sustainability of the current fleet, proactive measures are imperative to optimise their performance and curtail emissions immediately.

Addressing the sustainability conundrum

The vast majority of today’s commercial vehicles on the road today are powered by internal combustion engines (ICE) that run on diesel fuel. Since the first introduction of European exhaust emission standards in 1993, more stringent guidelines have been released every four to five years to reduce and eliminate harmful pollutants such as carbon dioxide, nitrogen oxide, hydrocarbons, and particulate matter from new vehicles sold in the EU.

 To meet the latest Euro VI (2015) emission standard, trucks are now typically equipped with diesel particulate filters (DPF) to capture particulate matter and lubricant ash, and selective catalytic reduction (SCR) technology to convert harmful nitrogen oxides to nitrogen and water, and exhaust gas recirculation (EGR) technology to lower the combustion temperature, reduce nitrogen oxides, and improve engine efficiency.

Euro VI engines are advanced and highly sophisticated systems that offer dependable and efficient performance. Together with the correct low-SAPS (sulphated ash, phosphorous, and sulphur) and low viscosity e.g. SAE 5W-30 engine lubricant, the fleet manager will benefit from reduced fuel consumption and warranted protection of the engine and exhaust aftertreatment devices (ATD).

As engine hardware has advanced, so has the lubricant technology. However, even with the latest low-viscosity oils, levels of fuel saving at 1-1.5% (compared to higher-viscosity oils) have not reached its full potential. Moreover, the continued use of metal-containing detergents and ZDDP (zinc dithiophosphate) antiwear components risk negatively impacting the performance and efficiency of the DPF, as well as the precious metal catalysts & sensors in the SCR units. This can lead to unplanned service and replacement of one or more of the ATDs, causing costly downtime for fleet managers.

 Euro 7 emissions regulations will be implemented in a few years, and it will require ATDs to perform as new for 200,000 km or 10 years. Therefore, the lubricant industry is facing a new challenge of lowering the levels   in engine lubricants even further.

Reducing unexpected downtime with technical lubricants

The fleet manager has access to high-quality diesel engines and lubricant technology, but they are concerned about unplanned mechanical issues due to the wear and tear of components from extended use. Additionally, the blockage of DPFs (which creates backpressure and increases fuel consumption) and the possible failure of sensors may lead to faults being registered on the truck’s OBD (on-board diagnostics) computer systems, still causing great concern for managers as they strive for maximum productivity and profitability.

Whilst the use of fossil fuels will remain crucial to power heavy-duty diesel engines, we must wait for further advancements in electrification. However, we can improve the lubricants currently being used to make commercial vehicles more efficient, with lower emissions and greater fuel economy. By doing this, we can reduce unwanted unplanned downtime for repairs or component replacements.

It is easy to see the clear link between reducing wear to increase the longevity of your machine assets. Additionally, by reducing friction, we can improve fuel savings which helps to increase efficiency, all essential steps towards acting more sustainably and making changes for a better future.