Overview
Through this scheme, employees can lease an electric car through a salary sacrifice arrangement, thus saving on NI and income tax. Employers also save through this scheme. The lease for employees includes fully comprehensive insurance (which includes business use) as well as servicing, maintenance, no quibble replacement tyres and accident management.
Cost savings
Employees save income tax and National Insurance on any purchases. This means a lower rate tax payer can save 28%, a higher rate tax payer 42% and an additional rate tax payer 47%. Employees also take advantage of low cost insurance alongside manufacturer discounts
Employers save money every time an electric car is leased via salary sacrifice. The average savings are £1000 per car, per year.
How the scheme works
Create your employer account and sign Ts and Cs
Maji adds a new tile for your benefit to your platform
You add the unique URL for your employees to the tile
Employees request a purchase
You approve the purchase
Car is delivered to employee
You receive a monthly invoice to pay
You make deductions from payroll
What happens if an employee leaves?
There is no charge if an employee needs to terminate their agreement due to:
Resignation, redundancy, retirement, TUPE
Ill health & other life events
Maternity, paternity and shared parental leave
Long term sickness
Loss of licence on medical grounds or driving convictions
Reduction in working hours or a relocation of the role
Career break
If an employee is dismissed, although an early termination fee would be applicable, there are protections in place for both the employer and employee as the early termination charges are capped at a maximum 6 gross monthly reductions which reduces depending on the remaining length of the agreement.
Are second hand cars available?
Pre-loved cars should be available to new clients by early 2025.
What happens at the end of a lease?
An employee has 3 options, the most popular being a key for key exchange so moving from one agreement to another. An employee can start looking for their next vehicle 6 months prior to their current agreement finishing to choose their next vehicle. If they really like the vehicle that they have been leasing, they also have the opportunity to purchase the vehicle for the fair market value at the time of the lease end, or they can just return the vehicle.