Loopit, the leading car subscription management platform, is helping to accelerate accessibility of electric cars in the UK with a simple software solution for businesses to use in conjunction with the increasingly popular salary sacrifice scheme. The turnkey cloud-based software solution developed by Loopit makes electric car subscription with salary sacrifice easy and cost-effective for employers to initiate, administer and manage internally.
More and more companies are signing up to salary sacrifice programmes, which incentivise employees with tax saving benefits. The benefits are especially advantageous for those wanting to use a salary sacrifice scheme for an electric car, making the transition to EV more affordable, even more so, when considering car subscription as an option.
The benefits of electric car subscription over leasing or ownership
Independent research commissioned by Loopit indicates that while less than 20% of UK motorists own an EV, over 75% of people are considering one. However, the majority of those who responded were reluctant to purchase yet would be happy to have an electric car on subscription. It is a much more flexible, less financially tying option, than leasing contracts or purchasing a car. There are no ‘cash-draining’ deposit requirements.
Car subscription is often ‘all-inclusive’ of motor insurance and paid in one monthly fee irrespective of how many miles are driven, to make mobility budgeting easy and more cost-effective. With electric car and battery technology fast-evolving, subscribers have the freedom to try different models, before or instead of, making any long-term commitment. For some, the economies of subscription create greater prospects for getting behind the wheel of a better car that would not be within budget if purchasing/ PCP or leasing.
Loopit UK Executive Chairman, Andrew Mortimer says: “Recruitment and employee retention are challenges for many business sectors in the UK, so the introduction of electric car subscription opportunities with the salary sacrifice scheme adds an appealing new incentive to the corporate package. Our off-the-shelf software is a hassle-free, cost-effective solution for many businesses to swiftly offer such a scheme.”
He adds: “As surveys have shown, there is a real desire from many motorists to switch to an electric vehicle soon but the higher purchase prices of EVs makes them less affordable, restricting uptake. Car subscription provides an affordable channel, without any long-term financial commitment so this, together with tax concessions, makes it an attractive proposition, especially with the Cost-of-Living crisis having such an impact on personal finances.”
Simple to use, easy to implement
Loopit’s purpose-built car subscription platform provides a secure internal portal that makes the entire process relatively effortless for employers to manage salary sacrifice schemes and their associated vehicle inventory. The ‘off-the-shelf’ software is ready to go making it quick and easy to implement. As such, it is cost-effective and practical for all sizes of businesses, from SMEs to large enterprises, and effectively supports carbon reduction goals. As a globally proven subscription and vehicle inventory management solution, Loopit’s software has the benefit of compatible integration with many existing systems.
Salary sacrifice services are deducted by the employer before tax, reducing cash earnings and therefore, income tax liability for that individual. For employers, this also means a reduction in National Insurance. Loopit’s highly configurable portal allows employers to create plans for employee access only, making convenient self-service and automated accounting key features of the system for ease of management. It automatically deducts payments from employee salaries and reduces the need for manual processes which can be time consuming, labour-intensive, and more prone to human error.
To find out more about Loopit’s car subscription solution, visit www.loopit.co
