OVL Lease Blog

All about electric cars

All about electric cars This blog shares some key facts about electric cars - we've got some fantastic offers on leasing electric cars right now, including Tesla, Pole... Read More

Don't panic - we can supply VWs and other electric/hybrid vehicles

Don You may have seen some headlines over the past few days that indicate a dire situation in the supply of new, electric vehicles but our message to y... Read More

The benefits of leasing a car through your business

The benefits of leasing a car through your business In our latest article we’ve outlined some of the benefits of business car leasing, whether you're a sole trader or the owner of a Limited... Read More

OVL Group Fundraiser for Ukraine

OVL Group Fundraiser for Ukraine I am sure you have, like me, watched the unfolding crisis in Ukraine with a mix of anger, sadness and horror. It is reported that over 2.5 million ... Read More

The OVL Review of the Polestar 2 Fastback

The OVL Review of the Polestar 2 Fastback We have been fortunate enough to have a Polestar 2 Fastback 170kWh Long Range (Single Motor 5 door auto) on demo and Andrew and Scott have given so... Read More

Salary sacrifice - BIK tax just 1% on all electric cars

Salary sacrifice - BIK tax just 1% on all electric cars Rarely has there been a better time to take advantage of a salary sacrifice scheme. An electric vehicle isn’t taxed based on the salary that ... Read More

OVL working with Premia Solutions to offer GAP insurance. 

OVL working with Premia Solutions to offer GAP insurance.  GAP insurance….do you know what it is? Do you know if you need it? Never fear, we’ll explain all. When you lease a new car... Read More

The EMTEC Polish Rally - news from an OVL partner company

The EMTEC Polish Rally - news from an OVL partner company EMTEC has become an accredited supplier for the soon to be compulsory Polish E-TOLL system. In order to achieve accreditation EMTEC participated in... Read More

Devon Wildlife Trust makes fleet emission data actionable! News from OVL partner company

Devon Wildlife Trust makes fleet emission data actionable! News from OVL partner company The Devon Wildlife Trust safeguards Devon’s unique natural environment. Devon is the third largest county in England and the Trust ... Read More

New electric cars for 2022

New electric cars for 2022 2022 looks set to be a year of exciting electric vehicle launches from many of the major manufacturers. Some of the models we are most ex... Read More

Salary sacrifice - BIK tax just 1% on all electric cars

25/01/2022

Salary sacrifice - BIK tax just 1% on all electric cars

Rarely has there been a better time to take advantage of a salary sacrifice scheme. An electric vehicle isn’t taxed based on the salary that you give up, you instead pay tax on the value of the benefit in kind (BIK) tax. BIK is the value of the benefit you receive (the car) and right now for electric cars, BIK tax is 1% for 2021/22.

This 1% is incredibly low compared to around 30% on a petrol or diesel car that is taken as a salary sacrifice.  By leasing an all electric car you will get all of the VAT benefits of a  salary sacrifice scheme plus you’ll be driving a brand new car and joining the all important ‘road to zero’ by embracing electric driving.

This low BIK this won’t last forever, we already know it will rise to 2% in 2023 so our advice is don’t delay, contact our team who are on hand to advise you on the best electric vehicles for your needs.  

You can contact us here and browse some of our all-electric vehicles available here. Why not subscribe to our weekly emails and get the best offers and available vehicles straight into your inbox. Fill in your details here.

What is salary sacrifice? 

A salary sacrifice arrangement is an agreement with an employer to reduce an employee’s entitlement to salary, usually in return for a non-cash benefit, such as a car. 

What is benefit in Kind? 

Benefits-in-kind. These are benefits that an employee receives that cannot be converted into cash but have a cash value.