Salary sacrifice EV basics for CFOs
A CFO-level introduction to the financial mechanics behind EV salary sacrifice programmes.
• 1 min read•
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Why CFOs are leaning in
With 2 percent BIK and strong NIC savings, EV salary sacrifice is one of the few employee benefits that reduces cost.
The core mechanics
- Gross salary reduction
- Income tax and NIC treatment
- Employer Class 1A NIC impacts
- Lease, insurance and risk structures
What a CFO should check
Model the NIC savings correctly and ensure risk products are integrated, not optional extras.
About the author
Written by Paul Fagan, Founder of Fagan & Company. Paul advises UK employers on EV salary sacrifice, fleet electrification, and insurance strategy.
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