Salary sacrifice begins the month following delivery of the vehicle, therefore you will be able to view and download your Electric Car Scheme invoice from the Employer Portal in the month following your employee receiving their EV. We aim to have all invoices and other necessary documentation live on the portal for all companies within the first 3 working days of the month and once the documents are live you will be notified via email.
Page One
At the top of the first page of our invoice, you will see the date of the service period the invoice relates to and the date the invoice was issued.
You will also be able to see our fee amount for that month, both including and excluding VAT. We show the VAT amount on our fee as this amount is also included in the VAT the company can reclaim, of which a breakdown can be seen on the second page of the invoice.
If any of your employees have opted to include insurance or a charger installation with their order, these amounts will also be itemised on this page. It's important to note at this stage that these extras are part of the employee’s salary sacrifice amount, so as a company you will recoup these costs through the employee’s monthly salary sacrifice.
Page Two
The second page of our invoice will show cash flows in and out as a whole across all employees taking part in the scheme. So, if you have more than one employee on the scheme, this page will show total costs combined for all employees participating in salary sacrifice.
The top of the page will show the total monthly cost of leases, maintenance and any other one-off costs such as charger installation and insurance. Next to the monthly cost will be the percentage of VAT you can reclaim. As a company, you can reclaim half the VAT on the lease cost (10%) and all VAT on all other costs (20%) including The Electric Car Scheme fee.
You will then see a breakdown of all cash flows in and out for the month. Including the total salary sacrifice amount for all employees, VAT reclaimable and the reduction in NI contributions the company will realise due to the employees’ salaries going down. This breakdown will provide clarity on how there is a net zero impact to the company.
It is important to note that in some cases, there may be a small impact to the company in the first month. This may be due to an EV(s) being delivered early on in the previous month, causing the company to have rental and maintenance outgoings for the previous month (as the lease or subscription provider will invoice the company the monthly cost as soon as the EV is delivered). Any net impact to the company will be recovered by the company in the final month of the lease and the company will be made whole through running the scheme.
Page 3 and remaining pages
Beginning on page 3 will be the cash flows breakdown per employee on the scheme. This will show you each employee’s EV registration, salary sacrifice amount and all reclaimable costs so you can keep track of cash flows per employee.
For more information regarding our invoices please see our HR & Finance Guide.