The Charge Scheme: A charge card service by Electric Car Scheme

There are now over 1.8 million electric cars in the UK, representing a significant shift towards sustainable transport.

However, one of the most significant barriers preventing wider EV adoption remains the rising cost of charging.

While electric vehicles offer substantial long-term savings compared to petrol and diesel alternatives, upfront costs and ongoing charging expenses can feel overwhelming for many potential drivers.

Enter salary sacrifice charging: an innovative employee benefit that's transforming how UK workers approach electric car ownership and running costs.

 

 

What Is Salary Sacrifice Charging?

Salary sacrifice charging is a workplace benefit scheme that enables employees to save 20-50% on all their electric vehicle charging costs, regardless of where they charge.

Whether you're charging at home, at the workplace, or using public charging networks, The Charge Scheme provides comprehensive coverage whilst delivering substantial tax savings.

The fundamental principle behind salary sacrifice EV charging is straightforward: you pay for your charging costs from your gross salary before tax, and National Insurance deductions are calculated.

This seemingly simple change delivers powerful financial benefits, potentially saving drivers £300-£1,000 annually on their EV charging expenses.

The Charge Scheme represents the UK's first salary sacrifice charging solution, specifically designed to address the rising cost of public charging, as well as allowing drivers to save whilst charging at home.

 

How Does Traditional Salary Sacrifice Work?

Before exploring the specifics of EV charging salary sacrifice, it's helpful to understand the broader concept of salary sacrifice schemes in the UK.

Salary sacrifice represents a legal arrangement where employees voluntarily agree to reduce their gross salary in exchange for non-cash benefits.

Because these benefits are provided before tax and National Insurance calculations, both employees and employers benefit financially.

The primary advantage lies in the substantial tax savings generated.

When you salary sacrifice a benefit, you pay from your gross salary before tax deductions, rather than from your net salary after tax. The higher your tax rate, the greater your potential savings through salary sacrifice arrangements.

 

How Does Salary Sacrifice Charging Work in Practice?

The Charge scheme operates through a straightforward four-step process designed for maximum convenience and minimal administrative burden:

 

Step 1: Employee Setup

Employees receive access to The Charge Scheme app and a charge card for public charging stations. The setup process takes just minutes, providing immediate access to over 76,000 charging points across the UK's comprehensive public charging network. Employees continue to charge and pay for home and workplace charging as normal.

 

Step 2: Monthly Mileage Submission

Each month, employees submit their mileage/odometer reading through an intuitive portal that takes approximately 10 seconds to complete. This simple step ensures accurate calculation of business versus personal charging costs.

 

Step 3: Cost Calculation

The Charge Scheme automatically calculates all charging costs, including:
● Home charging: Compatible with any home charger and any energy tariff
● Public charging: Access to thousands of charging points via The Charge Scheme app
● Office charging: Works with any workplace charging provider

 

Step 4: Payroll Adjustment

Employers receive clear payroll instructions to implement the salary sacrifice deduction from the employee's gross salary. The system handles complex calculations automatically, ensuring HMRC compliance whilst minimising administrative workload.

 

What Makes The Charge Scheme Different?

Created by the award-winning team behind The Electric Car Scheme, The Charge Scheme addresses a critical gap in the UK's electric vehicle infrastructure: charging affordability.

 

The Charging Cost Challenge

Despite recent improvements in public charging infrastructure, EV charging remains prohibitively expensive for many drivers.

Public rapid charging can cost up to 87p per kWh on networks like Instavolt, translating to approximately 22p per mile – sometimes exceeding the cost of petrol or diesel alternatives.

Even with discounted rates, public charging typically costs 54p per kWh or more, equating to roughly 18p per mile.

For the estimated 9 million UK households without access to off-street parking and home charging, these costs represent a significant barrier to EV adoption.

 

Comprehensive Coverage Across All Charging Scenarios

The Charge Scheme provides universal coverage for:

All Public Charging
● Access to over 76,000 public chargers nationwide
● Compatible with major charging networks, including Tesla Superchargers
● Single app and card solution eliminating multiple accounts

All Home Charging
● Works with any home charging setup
● Compatible with all energy tariffs
● No restrictions on charger type or installation

All Office Charging
● Integrates with any workplace charging provider
● Simple plug-in-and-save functionality
● Covers paid office charging arrangements

 

Who Benefits from Salary Sacrifice Charging?

 

Benefits for Employees

Substantial Financial Savings

Employees can save between £300 and £1,000 annually on personal charging costs. These 20-50% savings apply regardless of charging location or frequency, making electric vehicle ownership significantly more affordable.

 

Simplified Administration

Gone are the days of complex mileage calculations, receipt collection, and expense claims. The Charge Scheme calculates the real cost of charging automatically, removing guesswork and administrative burden for employees.

 

Universal Compatibility

The scheme works with any electric vehicle and any company car arrangement, whether employees drive company cars or use existing EV salary sacrifice schemes.

 

Immediate Setup

The app and charge card can be set up in minutes, with no complex onboarding processes or lengthy approval procedures required.

 

Benefits for Employers

Zero-Cost Implementation

The Charge Scheme bolts directly onto existing company car schemes with no additional cost or administrative burden for employers. It represents a genuine zero-cost addition to employee benefits packages.

 

Enhanced Scheme Uptake

By addressing one of the main barriers to EV adoption, employers see increased participation in their electric vehicle schemes. This supercharges uptake to existing EV schemes and propels Employer sustainability progress.

 

Net Zero Acceleration

Offering salary sacrifice charging increases the incentive for employees to choose electric vehicles, directly supporting corporate sustainability goals and Net Zero commitments.

 

Competitive Advantage

Forward-thinking employers can differentiate themselves in the talent market by offering benefits that address real employee concerns about EV ownership costs.

How Much Can You Actually Save?

The savings from salary sacrifice charging depend on several factors:

 

Tax Rate Impact

Your savings increase with your tax bracket. Basic rate taxpayers can see savings of around 20%, while high rate taxpayers can see savings of upwards of 40%.

 

Charging Pattern Influence

Your annual savings vary based on charging frequency and location:

● High-mileage drivers relying heavily on public charging: up to £1,000 annually
● Mixed charging users (home and public): £500-£750 annually
● Primarily home charging: £300-£500 annually

These calculations assume typical EV running costs and charging patterns for UK drivers completing 10,000-15,000 miles annually.

 

Real-World Success Stories

Shaw Education Trust

Shaw Education Trust, a multi-academy trust serving over 11,000 students, implemented The Charge Scheme as a zero-cost addition to their benefits package.

Stephen Watson, Chief People Officer, noted the enthusiasm from their team: "Since implementing The Charge Scheme as a zero-cost addition to our benefits package, we've seen remarkable enthusiasm from our team. The ability to save 20-50% on all charging costs through salary sacrifice has removed a significant barrier for educators considering the switch to electric vehicles."

 

Europa Worldwide Group

Europa Worldwide, one of the UK's largest transport and logistics companies, implemented The Charge Scheme for their mobile workforce.

"For a logistics company like ours, with team members on the move across various sites, the ability for our staff to save 20-50% on all charging costs through salary sacrifice has been transformative in encouraging the switch to electric vehicles," explains Amy Gordon, HR Coordinator.

The comprehensive coverage of home, company sites, and public network charging created minimal administrative burden, whilst several team members reported annual savings exceeding £600.

 

Red Badger Employee Experience

John Godfrey from Red Badger leased an MG4 through EV salary sacrifice. Without access to a home charger, he faced higher public charging costs.

The Charge Scheme provided relief by enabling him to recover savings through salary sacrifice, with expected annual savings exceeding £600.

"Since I don't have a home charger, I have been spending a lot on electricity from public charge points. I was pretty relieved to find out that there's a way to get some savings back through salary sacrifice. It'll likely save me more than £50 per month."

 

How to Get Started with Salary Sacrifice Charging

 

For Companies with Existing Car Schemes

If your organisation already operates a company car or salary sacrifice scheme, integration is straightforward:

1. Initial consultation: The Charge Scheme team works with your existing scheme provider
2. Employee communication: Clear guidance helps communicate the new benefit
3. App distribution: Employees receive access to the app and a physical charge card
4. Payroll integration: Simple monthly instructions enable payroll processing
5. Ongoing support: Continuous support ensures smooth operation

 

For Companies Without Car Schemes

Companies without existing schemes can implement The Electric Car Scheme, which offers complete EV salary sacrifice car programmes with integration of The Charge Scheme from day one.