- CBVC’s Michelle George (pictured): significant employer NIC savings through salary sacrifice
STAFFORDSHIRE leasing broker CBVC Vehicle Management is encouraging businesses to offset rising NIC costs through an electric vehicle (EV) salary sacrifice scheme.
In April, the employer NIC rate rose by 1.2% to 15% and the payment threshold dropped from £9,100 to £5,000. According to the Institute for Fiscal Studies (IFS), this could cost employers an additional £900 per employee each year, based on a median wage.
The fleet management specialist says these costs can be ameliorated through a salary sacrifice scheme.
“With employer NIC increasing, businesses are under growing pressure to manage rising costs. Introducing an EV salary sacrifice scheme is a smart, strategic way to significantly reduce your NIC bill - while also boosting employee benefits and delivering on sustainability goals.”
CBVC highlights the employer savings
According to Michelle George, these are the typical NIC savings across a range of popular electric vehicles.
Vehicle | Employer NIC savings per month | Employer NIC savings over 48 months |
BMW i5 eDrive40 M Sport Pro | £148 | £7,104 |
Audi Q4 Sportback 45 Black Edition | £126 | £6,048 |
Volkswagen ID.4 | £99 | £4,752 |
Examples are based on a 40 year old, 40% tax payer with insured vehicles on a 48 month, 40,000 mile contract. Quoted 08/04/2025.
CBVC says it is seeing strong uptake of its EV salary sacrifice solution across both new and existing customers. Earlier this year, the scheme was rolled out at Champions (UK) plc and now forms a key part of its HR benefits package and Environmental, Social and Governance (ESG) agenda.
Industry data from the British Vehicle Rental and Leasing Association (BVRLA) supports the uptick in salary sacrifice; its April Leasing Outlook Report reported 61% year-on-year growth for the funding method.
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Ralph Morton is the leading journalist in the leasing broker sector and editor of Broker News, the website which provides information and news for BVRLA-registered leasing brokers. He also writes extensively on the fleet and leasing market in both the UK and Europe.
