One of the benefits of a subscription EV is the flexibility they offer. We currently work with two subscription providers, Onto and Voltric. Below are the steps to follow when returning a subscription car.
Onto
Onto require at least 7 days notice before the end of the month to return an EV in the same month. This is because Onto’s invoice for the next month is issued 7 days before the end of the month (and payment is taken on the last day of the month). Therefore, this notice period prevents you from being charged for the following month also.
To cancel the subscription and arrange a collection, please contact The Electric Car Scheme and we will confirm the collection with Onto.
Onto only prorate the cost of the first month to match the delivery date. As such, if a customer cancels and returns the car at the start of the month, they still have to pay for that month. Therefore, we suggest it's in the customer's interest to return a car as close to the end of the month as possible.
Voltric
Voltric requires 30 days notice to process a return. As in Onto's case, please notify us when you would like to return your EV and we will then confirm the collection with Voltric on your behalf.
Voltric prorate the final month of rental so you will only pay for the days you physically have the car (provided you have given the full 30 days notice).
Returning your vehicle within the first 12 months
As per HMRC guidance, we advise a minimum commitment of 12 months to EV salary sacrifice. This commitment is also stated in the Employee Contract Amendment Agreement.
Should an employee wish to end their salary sacrifice commitment early, and be it for a reason not permitted in their ECAA, they will be charged a premature exit fee.
Employees should not view salary sacrifice as a way of altering their salary on a short-term basis. If an employee ends their commitment early (as well as a premature exit fee) they risk HMRC determining that their short-term salary sacrifice was not correct and HMRC may request repayment of the tax savings that were made.
HMRC is quite clear that changes to salary sacrifice should only be made on the basis of a significant lifestyle change (i.e. not just a change of mind). Details of which can be found on their website here