A company plans to lease an electric car for use by one of its employees. What is the tax and national insurance contributions (NIC) impact of doing this via a salary sacrifice arrangement?

This question is becoming more common as electric cars become more affordable, accessible and their use more widespread in society.

Employers are looking for new ways to introduce these types of cars into their company car fleet to reduce their carbon footprint and fuel costs. One option is leasing electric cars in combination with agreed salary sacrifice arrangements between employers and their employees.