Global banking organisation HSBC has launched a benefit enabling its 35,000 UK-based staff to lease a new all-electric vehicle through a salary sacrifice arrangement, with the option to buy at the end of the term.
The business has implemented this benefit with a view to helping employees become more sustainable in their day-to-day lives, as well as providing access to electric vehicles in a cost-effective way. HSBC noted that per HMRC rules, employer-provided electric vehicles are subject to a low benefit-in-kind tax. This tax is currently set at 2% for electric vehicles with a range of 130 miles or more, compared with tax as high as 37% for diesel or petrol cars.
HSBC has provided employees with access to more than 200 models of electric cars, including Teslas. The arrangement also include comprehensive insurance, breakdown cover, accident management, and a full maintenance package, including replacement tyres, road tax and MOTs.
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The overall cost of the cars varies based on the model and the driver history, and participants can choose between 24, 30, 36, and 48-month terms, with the option to buy the car from their employer at the end of the contract. The scheme also allows them to choose an annual mileage between 5,000 and 30,000, depending on what suits them.
Ian Stuart, chief executive of HSBC UK, said: “Supporting the transition to net zero is a vital part of our UK strategy, with our new green car scheme helping colleagues access the financial benefits of choosing an electric vehicle and become more sustainable in their day-to-day lives.”