How the Electric Car Scheme Works: Step-by-Step for Employers and Employees

Leasing a car through salary sacrifice with The Electric Car Scheme is a simple and supported process. From signup to car delivery and salary adjustments, we’ll guide you every step of the way.

 

Step 1: Company Signs Up

You can register your company online here or speak directly with one of our expert Business Development Managers (BDMs). Once signed up, the nominated Scheme Coordinator will receive access to your company’s dedicated Employer Portal - your hub for managing quotes, invoices, documents, and reporting.

 

Step 2: Sign the Service Agreement

The next step is signing the Service Agreement. This outlines the services The Electric Car Scheme (ECS) will provide and sets the legal terms of our partnership. It’s a straightforward contract that makes everything official and enables us to start setting up your scheme.

 

Step 3: Set Up Direct Debit Payments

There are two payment flows involved:

  • ECS Administration Fee: We’ll help you set up a monthly Direct Debit via GoCardless. Invoices for these fees are included in monthly Scheme Reports, typically paid at month-end.
  • Car Lease Costs: Your company pays the leasing or subscription provider directly for the vehicle. You’ll provide payment details to each provider when your first vehicle is ordered. 

Each provider typically requests payment information only once. We’ll help manage and coordinate this setup.

 

Step 4: Apply for Company Credit

Before leasing can begin, the company must be credit-approved by our finance partners. The good news? ECS handles this application process on your behalf, making it fast and easy. Once approved, you're ready to launch the scheme to your team.

 

Step 5: Internal Scheme Launch

Our aim is to get employees excited about the opportunity and help them understand the benefits. With your scheme now live, we’ll help you engage your team. ECS provides full launch support, including:

  • Customisable email templates
  • Awareness campaigns
  • Live webinars and Q&A sessions
  • Materials for HR and payroll
  •  

Step 6: Employees Get Quotes

Employees can now browse vehicles and request quotes. Our EV Specialists are on hand to help them choose the right car based on their lifestyle, budget, and preferences.

Employees can:

  • Get instant quotes online
  • Book 1:1 calls with our team
  • Compare new and used EV options
     

Step 7: Ordering the Car

Once an employee selects a car, both the employer and employee will sign a Salary Sacrifice Agreement. This outlines:

  • The employee’s agreement to reduce gross salary in exchange for a fully maintained EV
  • Confirmation that the lease aligns with your company’s eligibility criteria

This document also protects your business and ensures HMRC compliance.

 

Step 8: Car Delivery

After the agreement is signed, ECS places the order and manages the entire process, from vehicle confirmation to delivery. If a home charger was selected, we’ll coordinate installation too.

We keep the employee updated throughout, including estimated delivery timelines. On delivery day, we even give the employee a courtesy call to make sure everything’s perfect.

 

Step 9: Salary Sacrifice Begins

Once the car is delivered, your company will begin receiving:

  • Monthly Scheme Reports in the Employer Portal (invoices, payroll deductions, and admin fees)
  • Car Lease Invoices from the provider directly 

The salary sacrifice typically begins from month 2 of the lease. This allows time to set up payroll deductions properly. The first deduction may include setup or one-off costs like charger installation or delivery fees.

 

Step 10: End of Lease & Reconciliation

At the end of the lease, ECS organises the car’s return and conducts a final reconciliation:

  • Any end-of-lease charges (e.g. excess mileage, minor damage) are assessed
  • Payroll and Scheme Reports are updated to reflect final balances 

This is the final opportunity to reconcile any outstanding payments or review the salary sacrifice history.

 

Was this article helpful?
0 out of 0 found this helpful