How to Transfer Your Electric Car Salary Sacrifice Lease in 2026
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If you're currently in an electric car salary sacrifice scheme and your circumstances have changed, you may be wondering whether you can transfer your lease to another employee or exit the arrangement early. Unlike traditional car leases, transferring a salary sacrifice electric car lease involves additional considerations around employer approval, tax implications, and scheme-specific policies that make the process unique.
With EV drivers saving 20-50% through The Electric Car Scheme in 2026, and Benefit-in-Kind rates for electric cars set at just 3%, understanding your transfer options is crucial for maximising these benefits. Whether you're changing jobs, relocating, or simply want to upgrade to a newer model, this comprehensive guide explains everything you need to know about transferring your electric car salary sacrifice lease, including costs, timelines, and alternatives specific to company electric car schemes.
If you're currently in a car lease agreement and need to exit early, transferring your car lease to another person can be an effective solution. Whether due to changing financial circumstances, lifestyle changes, or simply wanting a different vehicle, lease transfers offer a legitimate way to get out of your current arrangement without facing substantial early termination penalties.
Can You Transfer an Electric Car Salary Sacrifice Lease?
Yes, you can transfer an electric car salary sacrifice lease, but the process differs significantly from traditional car lease transfers. Transferring a salary sacrifice electric car requires approval from three parties: your employer, the scheme provider (such as The Electric Car Scheme), and the leasing company providing the vehicle.
The new employee taking over your lease must meet several eligibility criteria, including passing a credit check, demonstrating sufficient income to cover the monthly salary sacrifice deductions, and being employed by the same company (in most cases). The lease terms—including monthly payments, contract length, and mileage allowance—typically remain the same after the transfer, ensuring the new employee benefits from the same tax-efficient arrangement.
Quick Answer: Can You Transfer an EV Salary Sacrifice Lease?
Yes, you can transfer an electric car salary sacrifice lease, but it requires:
Employer approval
Scheme provider approval (e.g., The Electric Car Scheme)
Leasing company approval
New employee credit check and eligibility confirmation
Agreement from all parties
The process typically takes 2-4 weeks and costs £150-£500. The new employee continues to benefit from the same low 3% BiK rate and 20-50% savings through salary sacrifice, making transferred electric car leases highly attractive.
Most electric car salary sacrifice schemes, including The Electric Car Scheme, allow transfers to facilitate employee mobility whilst protecting employers from financial risk. However, policies vary between providers, so it's essential to review your specific scheme terms before initiating a transfer.
How Does Transferring an EV Salary Sacrifice Lease Differ from Traditional Leases?
Transferring a salary sacrifice electric car lease involves several unique elements that distinguish it from conventional car lease transfers. Understanding these differences helps you navigate the process more effectively and set appropriate expectations for timelines and requirements.
Additional Approval Requirements
Traditional car leases require only the leasing company's approval for transfers. In contrast, electric car salary sacrifice arrangements require employer consent because the lease is structured as an employment benefit. Your employer must agree to extend the same benefit to the new employee, which may involve internal HR approvals and policy reviews.
The scheme provider also plays a role in approving transfers. With The Electric Car Scheme, our team ensures both parties understand their obligations and that the transfer maintains compliance with HMRC regulations for salary sacrifice arrangements.
Tax Implications and BiK Continuity
One significant advantage of transferring within a company electric car scheme is BiK tax continuity. The new employee benefits from the same ultra-low BiK rates that make electric car salary sacrifice so attractive:
2025/26: 3% BiK rate
2026/27: 4% BiK rate
2027/28: 5% BiK rate
2028/29: 6% BiK rate (projected)
These rates remain dramatically lower than petrol or diesel company cars, which can reach 37% BiK, meaning the transferred lease maintains its tax efficiency for the new employee. This makes finding a willing transferee significantly easier compared to high-BiK traditional vehicle leases.
Employer Protection Considerations
The Electric Car Scheme's Complete Employer Protection significantly simplifies transfers compared to traditional arrangements. Our unique protection policy safeguards businesses from financial risks when employees leave mid-contract:
No exclusion periods—protection applies from day 1
No excess fees if the employee leaves unexpectedly
No underpayment concerns during maternity or parental leave
Protection if the employee doesn't pay damage or excess mileage fees
This comprehensive protection means employers can confidently approve transfers without worrying about being stuck with unwanted lease obligations. It's a key differentiator from traditional lease transfers where employers often bear significant financial risk.
Comparison Table: Traditional vs Salary Sacrifice EV Lease Transfers
| Transfer Aspect | Traditional Car Lease | EV Salary Sacrifice Lease |
|---|---|---|
| Approval Required | Leasing company only | Leasing company + employer + scheme provider |
| Tax Implications | None | 3% BiK rate continues for new employee |
| Employer Protection | Limited or none | Complete from day 1 (The Electric Car Scheme) |
| Transfer Timeline | 2-4 weeks | 2-4 weeks |
| Savings Benefit | N/A | New employee saves 20-50% vs personal lease |
| Within-Company Only | No restriction | Usually required |
| HMRC Compliance | Not applicable | Must maintain salary sacrifice rules |
What Are the Requirements for Transferring an Electric Car Scheme Lease?
Successfully transferring your electric car salary sacrifice lease requires both parties to meet specific eligibility criteria. Understanding these requirements helps ensure a smooth transfer process and avoids delays or complications.
Current Employee (Transferor) Requirements
As the current lessee transferring your electric car, you must meet several conditions:
Payment Status: You must be up to date with all salary sacrifice deductions and have no outstanding fees, damage charges, or excess mileage penalties. Any arrears must be settled before the transfer can proceed.
Contract Terms: Review your agreement to confirm transfers are permitted. Most electric car salary sacrifice schemes, including The Electric Car Scheme, allow transfers, but specific terms may apply regarding minimum contract duration remaining or notice periods.
Vehicle Condition: The electric car must be in good condition with no excessive wear and tear beyond normal use. A professional inspection may be required to assess the vehicle's current state. Any damage beyond fair wear and tear should be disclosed and potentially repaired before transfer to avoid disputes.
Employment Status: You typically need to remain employed by the same company during the transfer process. If you're leaving employment, early termination provisions rather than transfer procedures may apply.
Documentation Preparation: Gather essential documents including your original salary sacrifice agreement, vehicle registration documents, service history records, and any correspondence with your employer or scheme provider about the vehicle.
New Employee (Transferee) Eligibility
The employee taking over your electric car salary sacrifice lease must satisfy several requirements:
Employment Status: The new employee must typically work for the same employer, as salary sacrifice arrangements are employee benefits tied to specific employment contracts. Inter-company transfers are rarely permitted unless both companies participate in the same scheme.
Credit Assessment: A comprehensive credit check is required, similar to when applying for a new lease. The new employee must demonstrate good credit history and financial reliability to assume the ongoing payment obligations.
Income Verification: The new employee needs stable income, typically requiring gross earnings at least three times the monthly salary sacrifice amount. This ensures the deduction won't cause financial hardship whilst maintaining compliance with salary sacrifice regulations.
Age Requirements: Most providers require the new employee to be at least 21 years old, with some having upper age limits or additional requirements for older applicants approaching retirement.
Minimum Salary Threshold: After the salary sacrifice deduction, the new employee's remaining salary must meet or exceed the National Minimum Wage or National Living Wage. This is a legal requirement that prevents salary sacrifice from reducing earnings below statutory minimums.
Driving Licence: A full, valid UK driving licence is essential, with some schemes requiring minimum years of driving experience, particularly for higher-value electric vehicles.
Employer Requirements
Your employer must also approve the transfer and may have internal requirements:
HR Policy Compliance: The transfer must align with company policies on employee car ownership schemes and benefit assignments.
Budget Availability: The employer must have capacity within their electric car scheme allocation for the transfer.
Administrative Capacity: Resources must be available to process payroll changes and maintain proper documentation.
With The Electric Car Scheme, our dedicated support team guides employers through the approval process, ensuring compliance whilst minimising administrative burden.
How Much Does It Cost to Transfer a Salary Sacrifice Electric Car Lease?
Understanding the financial implications of transferring your electric car salary sacrifice lease helps you make informed decisions and budget appropriately. Transfer costs for EV salary sacrifice schemes can vary based on your provider, vehicle, and specific circumstances.
Standard Transfer Fees
Most electric car salary sacrifice providers charge administrative fees to process lease transfers. With The Electric Car Scheme, transfer fees typically range from £150 to £500, covering:
Credit checks for the new employee
Documentation processing and contract amendments
Administrative overhead for coordinating between all parties
Vehicle condition assessment and records updates
These fees are significantly lower than early termination penalties, which can reach thousands of pounds, making transfers an attractive option for employees who need to exit their arrangements early.
Vehicle Inspection Costs
A professional vehicle inspection may be required to assess your electric car's condition before transfer. Inspection costs usually range from £50 to £150, depending on the vehicle type and inspection provider.
The inspection identifies any damage beyond fair wear and tear, including:
Bodywork damage (scratches, dents, scuffs)
Interior wear (seat damage, stains, excessive soiling)
Tyre condition and tread depth
Charging equipment and cables condition
Technical functionality (battery health, charging capability)
Any identified damage may need addressing before the transfer completes, with costs varying based on severity. Understanding electric car maintenance requirements helps you keep your vehicle in transfer-ready condition.
Outstanding Charges to Settle
Before transferring your electric car salary sacrifice lease, you must settle any outstanding charges:
Excess Mileage Fees: If you've exceeded your annual mileage allowance, per-mile charges apply. These typically range from 5p to 15p per mile for electric vehicles, though rates vary by scheme and vehicle.
Damage Charges: Any damage beyond fair wear and tear must be repaired or paid for. The BVRLA Fair Wear and Tear Guide provides industry standards for acceptable vehicle condition.
Missed Payments: Any arrears in your salary sacrifice deductions must be cleared. Payment plans may be available if you're experiencing temporary financial difficulty.
Service and Maintenance Arrears: If you've delayed required servicing or maintenance, these must be completed and paid for before transfer.
Cost Comparison: Transfer vs Alternatives
| Option | Typical Cost | Timeline | Impact on Credit |
|---|---|---|---|
| Lease Transfer | £150-£500 + inspection | 2-4 weeks | Minimal |
| Early Termination | £2,000-£8,000+ | 2-6 weeks | Moderate |
| Complete Contract | Remaining payments only | Original term | None |
| Employer Protection (TECS) | £0 for employer | 2-3 weeks | None |
With The Electric Car Scheme's Complete Employer Protection, employers face zero costs when employees leave mid-contract, as we assume the vehicle and lease obligations. This unique benefit makes our scheme particularly attractive for businesses concerned about employee turnover.
Potential New Lessee Costs
The employee taking over your lease may face additional charges:
Security Deposit: Some schemes require a deposit equivalent to one or two monthly payments, particularly if the new employee's credit score is below the preferred threshold. However, The Electric Car Scheme typically doesn't require additional deposits for transfers with good credit.
Administration Fees: The new employee may pay processing fees, usually £50-£100, to set up their salary sacrifice arrangement.
Insurance Adjustments: Whilst comprehensive insurance is typically included in salary sacrifice electric car arrangements, some policies may require additional premiums based on the new employee's driving history.
Understanding these costs helps both parties enter the transfer process with clear expectations. For employees considering whether to take over a transferred lease, comparing these costs against starting a new electric car salary sacrifice arrangement helps determine the best option.
Can I Transfer My Electric Car Lease to a Family Member?
Yes, you can often transfer your electric car salary sacrifice lease to a family member, and this process is typically easier than transferring to an unrelated colleague. Many salary sacrifice providers, including The Electric Car Scheme, have streamlined procedures for family transfers within the same company, recognising the lower risk involved in keeping arrangements within family units.
Advantages of Family Transfers
Family transfers within electric car schemes offer several benefits:
Simplified Documentation: Many providers reduce documentation requirements for spouse or immediate family transfers, expediting the approval process.
Reduced Fees: Some electric car salary sacrifice schemes waive certain fees for family transfers, making this option more cost-effective than external transfers.
Faster Approvals: With established family relationships and potentially shared addresses, verification processes may be quicker.
Maintained Family Benefits: When both family members work for the same employer, transferring an electric car within the household can help optimise overall family tax efficiency.
Same-Employer Requirement
The most critical requirement for family transfers is that the family member must typically work for the same employer. Salary sacrifice arrangements are employment-specific benefits, so the lease must stay within the same company's scheme.
If your family member works for a different employer, a direct transfer isn't usually possible. However, you could:
Arrange early termination through your scheme's provisions
Have your family member apply for a new electric car through their employer's scheme
Explore whether both employers participate in The Electric Car Scheme, which may allow special transfer arrangements
Eligibility Requirements Still Apply
Despite family relationships, the transferee must still meet standard eligibility criteria:
Credit Checks: Your family member must pass the same credit assessment as any other potential transferee, demonstrating financial reliability.
Income Verification: They need sufficient gross salary to accommodate the salary sacrifice deduction whilst maintaining earnings above the National Minimum Wage.
Age Requirements: Standard age restrictions (usually 21+ years) apply regardless of family relationship.
Driving Licence: A full, valid UK driving licence with appropriate experience is essential.
Even with family relationships, leasing companies and scheme providers maintain their financial assessment standards to ensure the new lessee can meet payment obligations throughout the remaining contract term.
Spouse-to-Spouse Transfers
Transfers between spouses or civil partners working for the same employer are generally the most straightforward family transfers. Some providers treat these as internal adjustments rather than full transfers, potentially waiving fees entirely.
When both spouses benefit from employee car ownership schemes, coordinating your arrangements can maximise household tax efficiency whilst ensuring both have access to appropriate vehicles.
Alternative Family Solutions
If a direct family transfer isn't possible, consider these alternatives:
Adding as Named Driver: Most salary sacrifice schemes allow you to add family members as named drivers on your insurance, enabling shared use without formal transfer.
New Application: Your family member can apply for their own electric car through salary sacrifice, potentially selecting a vehicle better suited to their needs. With The Electric Car Scheme offering everything from affordable small electric cars to premium electric SUVs, there's likely a perfect option for every family member.
Upgrading Together: Some families coordinate lease end dates to upgrade simultaneously, ensuring both vehicles meet current family needs whilst maximising tax benefits.
How Long Does an EV Salary Sacrifice Lease Transfer Take?
The timeline for completing an electric car salary sacrifice lease transfer typically ranges from two to four weeks, though this can vary based on several factors including scheme provider efficiency, the new employee's application complexity, and documentation completeness. Understanding the process timeline helps you plan accordingly and set realistic expectations.
Transfer Timeline Breakdown
Week 1: Initial Application and Documentation (5-7 business days)
The first stage involves submitting the transfer application and gathering required documentation. This includes:
Transfer request form completion
Current vehicle condition documentation
Employment verification for the new employee
Initial credit check authorisation
Most delays at this stage occur when documentation is incomplete or when additional information is requested. Having all paperwork prepared in advance significantly accelerates this phase.
Week 2: Credit Assessment and Approvals (5-7 business days)
Credit checks for the new employee typically complete within 1-2 business days, though manual review may extend this timeline. Employment verification and income documentation are processed simultaneously.
With The Electric Car Scheme, our dedicated team coordinates approvals from:
The leasing company
Your employer's HR department
Our internal compliance team
Finance providers
This coordinated approach ensures efficient processing whilst maintaining compliance with salary sacrifice regulations and HMRC requirements.
Week 3-4: Vehicle Inspection and Handover (5-10 business days)
Once approvals are secured, the final stages include:
Professional vehicle inspection scheduling and completion
Any required repairs or cleaning
Documentation finalisation and contract amendments
Vehicle handover arrangements
Insurance updates and confirmation
Vehicle inspections can sometimes create delays if they reveal damage requiring repairs. Maintaining your electric car in good condition throughout your lease helps avoid these complications.
Factors Affecting Transfer Timeline
Several factors can extend or shorten the transfer timeline:
Credit Complexity: Self-employed individuals or those with complex income arrangements may face extended verification periods, potentially adding 1-2 weeks to the process.
Employer Responsiveness: HR departments with streamlined approval processes enable faster transfers, whilst those requiring multiple internal approvals may extend timelines.
Vehicle Condition: Electric cars in excellent condition with complete service histories process faster than those requiring pre-transfer repairs or extensive documentation.
Scheme Provider Efficiency: The Electric Car Scheme's dedicated support team and established processes typically deliver faster transfers than providers with limited transfer experience.
Seasonal Factors: Periods of high activity (such as new number plate releases in March and September) may see slightly extended timelines due to increased demand.
Expedited Transfer Services
Some providers offer expedited transfer services for additional fees, potentially reducing timelines to 7-10 business days. However, this depends on all parties being readily available and having complete documentation prepared in advance.
The Electric Car Scheme prioritises efficient processing for all transfers, aiming to complete standard transfers within two weeks when all documentation is submitted promptly.
Business Lease Transfer Timelines
Business contract hire arrangements involving fleet agreements or special corporate rates may require additional corporate approvals, potentially extending timelines to 4-6 weeks. These transfers involve additional complexity around VAT, corporation tax implications, and compliance with company vehicle policies.
What Happens to My BiK Tax When I Transfer an Electric Car Lease?
Understanding the Benefit-in-Kind tax implications of transferring your electric car salary sacrifice lease is crucial for both the outgoing and incoming employees. The good news is that electric vehicles maintain their exceptional tax advantages throughout the transfer process, making transferred EV leases highly attractive propositions.
BiK Tax Continuity for the New Employee
When someone takes over your electric car salary sacrifice lease, they inherit the same ultra-low BiK rates that make EV salary sacrifice so cost-effective:
Current and Future BiK Rates for Electric Cars:
2025/26: 3% BiK rate
2026/27: 4% BiK rate
2027/28: 5% BiK rate
2028/29: 6% BiK rate (projected)
2029/30: 7% BiK rate (projected)
These rates remain dramatically lower than petrol or diesel company cars, which can reach a maximum of 37% BiK. This substantial difference means the new employee continues to benefit from significant tax savings, making transferred electric car leases far more attractive than conventional vehicle transfers.
BiK Tax Calculation Example
Let's examine how BiK tax works for a transferred electric car:
Example Vehicle: Tesla Model 3 Long Range
P11D Value: £45,000
BiK Rate (2025/26): 3%
Employee Tax Bracket: 40%
Annual BiK Tax Calculation:
Taxable benefit: £45,000 × 3% = £1,350
Annual tax liability: £1,350 × 40% = £540
Monthly tax cost: £540 ÷ 12 = £45
Comparison with Petrol Equivalent (BMW 3 Series):
P11D Value: £45,000
BiK Rate: 34% (typical for petrol)
Taxable benefit: £45,000 × 34% = £15,300
Annual tax liability: £15,300 × 40% = £6,120
Monthly tax cost: £6,120 ÷ 12 = £510
Monthly BiK Saving with Electric: £465
This dramatic difference demonstrates why transferred electric car salary sacrifice leases remain highly desirable despite being 'second-hand' arrangements within the scheme.
Impact on Your Tax When You Transfer Out
When you transfer your electric car salary sacrifice lease to another employee, your BiK tax liability ceases from the point of transfer. Your employer should adjust your tax code accordingly, ensuring you're no longer taxed on the benefit you no longer receive.
Key Points to Monitor:
Ensure your employer updates HMRC about the transfer
Check your payslip shows the BiK adjustment within 1-2 pay periods
Your P11D for the tax year should only reflect the months you had the vehicle
If you transfer mid-tax year, you'll only pay BiK tax for the portion of the year you had the vehicle
Ongoing BiK Advantages for Electric Vehicles
The new employee taking over your lease benefits from several BiK-related advantages:
Lower Overall Tax Burden: With 3% BiK in 2025/26 compared to up to 37% for petrol/diesel, the tax efficiency remains exceptional.
Predictable Tax Increases: The gradual BiK rate increases (rising by 1% annually until 2028) are known in advance, allowing for accurate financial planning.
Combined with Salary Sacrifice Savings: The low BiK rate works alongside the 20-50% salary sacrifice savings, creating a highly cost-effective package. Employees save through reduced Income Tax and National Insurance contributions, whilst only paying minimal BiK tax.
No Road Tax: Electric cars remain exempt from Vehicle Excise Duty (VED or 'road tax') until April 2025, after which they'll pay the lowest rate. This additional saving enhances the overall cost-effectiveness.
For detailed information about BiK taxation and how it works with salary sacrifice, see our comprehensive guide to Benefit-in-Kind for electric cars.
What Are the Alternatives to Transferring Your Salary Sacrifice EV Lease?
If transferring your electric car salary sacrifice lease isn't feasible, doesn't suit your timeline, or you can't find a suitable transferee, several alternatives might better match your circumstances. Understanding these options helps you make the most appropriate decision for your situation.
Early Termination with Complete Employer Protection
The Electric Car Scheme's unique Complete Employer Protection offers a significant advantage for employees who need to exit their lease early. Unlike traditional arrangements where early termination can cost thousands of pounds, our protection policy safeguards both employers and employees.
How Complete Employer Protection Works:
No Employer Penalties: If you leave employment or need to terminate early, your employer faces zero financial liability
From Day 1: Protection applies immediately—no exclusion periods or waiting times
No Excess Fees: Standard early termination excess charges don't apply to employers
Maternity Protection: No underpayment concerns during maternity or parental leave
Damage Protection: Employers aren't liable for damage or excess mileage charges
This protection makes The Electric Car Scheme particularly attractive for both employers (who avoid financial risk) and employees (who have flexibility knowing their employer won't face penalties).
For more details, visit our Complete Employer Protection page.
Upgrading to a Newer Electric Car Model
Rather than transferring your existing lease, consider upgrading to a newer electric car model through The Electric Car Scheme. With rapid EV technology advancement, newer models often offer:
Improved Range: Modern electric cars achieve significantly longer ranges than models from just 2-3 years ago. Average electric car range has increased from around 150 miles to over 250 miles for comparable vehicles.
Faster Charging: Newer EVs support higher charging speeds, with some models charging from 10-80% in under 20 minutes. Understanding how long it takes to charge an electric car helps you appreciate these improvements.
Enhanced Technology: Updated infotainment systems, driver assistance features, and connectivity options improve the driving experience significantly.
Better Efficiency: Newer electric cars are more efficient, reducing your running costs even further whilst maintaining performance.
Maintained Tax Benefits: You'll continue enjoying the same low 3% BiK rate and 20-50% salary sacrifice savings on the newer vehicle.
Popular upgrade options for 2026 include:
Lease Extension Options
If your circumstances are temporary or you're uncertain about your next vehicle choice, extending your electric car salary sacrifice lease provides flexibility whilst you explore longer-term solutions.
Month-to-Month Extensions: Many salary sacrifice providers, including The Electric Car Scheme, offer month-to-month extensions after your initial contract term ends. This provides:
Continued access to your electric car without long-term commitment
Time to research and test drive alternative vehicles
Flexibility to align your next vehicle decision with life changes
Maintained tax benefits and insurance coverage
Fixed-Term Extensions: Alternatively, you might extend for a fixed period (typically 6-12 months), often at rates comparable to your original agreement.
Note that extension rates may differ from your original contract terms, but they're typically more economical than early termination penalties whilst providing the flexibility you need.
Switching to a Used Electric Car Through Salary Sacrifice
The Electric Car Scheme offers used electric car salary sacrifice options, providing an even more affordable route to electric driving. Benefits include:
Lower Monthly Costs: Used EVs through salary sacrifice can cost significantly less than new models whilst maintaining the same tax advantages.
Faster Delivery: Used electric cars are typically available for delivery within 14 days, compared to potentially longer waits for new vehicles.
Proven Reliability: Modern electric cars demonstrate excellent reliability, with many used EVs offering remaining manufacturer warranties.
Same Tax Benefits: Used electric cars through salary sacrifice still benefit from the 3% BiK rate and 20-50% savings structure.
Reduced Depreciation Concern: Used vehicles have already experienced their steepest depreciation, potentially offering better value.
Explore our used electric car salary sacrifice options to see available vehicles and calculate potential savings.
Continuing Your Current Lease
Sometimes the simplest solution is maintaining your existing arrangement until the natural contract end. This option makes sense when:
You have less than 6-12 months remaining on your lease
Your circumstances are stable enough to complete the term
The cost and effort of transferring exceed the benefits
You're planning a comprehensive review of your vehicle needs afterward
Completing your lease term allows you to:
Avoid transfer fees and administrative complexity
Maintain your established relationship with the vehicle
Plan your next vehicle choice without time pressure
Potentially negotiate better terms on your next salary sacrifice arrangement
Temporary Hardship Provisions
If financial difficulty is prompting your transfer consideration, speak with The Electric Car Scheme about temporary hardship provisions. We may be able to:
Adjust payment schedules temporarily
Reduce mileage allowances with corresponding payment reductions
Explore reduced-specification alternatives
Arrange payment holidays in specific circumstances
Our team is committed to finding solutions that work for both you and your employer whilst maintaining the integrity of the salary sacrifice arrangement.
How to Transfer Your Electric Car Salary Sacrifice Lease: Step-by-Step Guide
Successfully transferring your electric car salary sacrifice lease requires careful planning and attention to detail. Following this structured approach ensures a smooth transfer process whilst minimising potential complications and delays.
Step 1: Review Your Current Lease Agreement
Begin by thoroughly reviewing your salary sacrifice agreement and vehicle lease contract to understand transfer provisions, restrictions, and requirements.
Key Elements to Check:
Transfer Permissions: Confirm your agreement explicitly allows transfers and note any specific conditions
Notice Requirements: Identify any notice periods required before initiating a transfer
Minimum Contract Remaining: Some schemes require a minimum contract duration remaining (typically 6-12 months)
Transfer Fees: Note the fees outlined in your agreement for processing transfers
Conditions and Restrictions: Understand any limitations on who can take over your lease
Payment and Condition Review:
Verify you're current on all salary sacrifice deductions
Check for any outstanding fees, damage charges, or excess mileage penalties
Document the vehicle's current condition with photographs
Gather service history records and maintenance documentation
Having complete documentation prepared before contacting your scheme provider significantly accelerates the process.
Step 2: Contact The Electric Car Scheme
Reach out to The Electric Car Scheme's dedicated support team to discuss your transfer intentions and understand our specific requirements and processes.
What to Discuss:
Your reason for transfer and timeline requirements
Available transfer options and procedures
Specific documentation needed for your situation
Transfer fees and cost expectations
Timeline estimates based on current processing volumes
Request Transfer Information Pack:
Our team will provide a comprehensive transfer packet including:
Transfer application forms
Required documentation checklist
Process timeline and milestone overview
Fee schedule and payment arrangements
Contact information for ongoing support
Schedule Vehicle Inspection:
If a vehicle inspection is required, schedule this as early as possible. Early scheduling allows time to address any identified issues before they impact the transfer timeline. Inspections typically assess:
Bodywork condition and any damage
Interior wear and cleanliness
Tyre condition and tread depth
Charging equipment and cables
Battery health and charging functionality
Service history compliance
Step 3: Find a Suitable Replacement Employee
Identifying a qualified replacement employee is crucial for successful transfer. You can find potential transferees through various channels.
Internal Company Search:
Inform your HR department about your transfer intentions—they may know interested colleagues
Post in internal communication channels (intranet, Slack, Teams)
Speak with colleagues in different departments who might benefit from an electric car
Contact your company's environmental or sustainability team—they may help promote the opportunity
Pre-Screening Considerations:
When evaluating potential transferees, discuss:
Their employment status and tenure with the company
General income level and financial stability (without requesting specific details)
Interest in electric vehicles and understanding of how electric cars work
Driving licence status and experience
Timeline and urgency for acquiring a vehicle
While you can't make final approval decisions, understanding likely eligibility saves time and prevents disappointment later.
Highlighting the Benefits:
Help potential transferees understand the advantages of taking over your lease:
Immediate availability (no waiting for new vehicle delivery)
Established vehicle with known history and condition
Same 3% BiK rate and 20-50% salary sacrifice savings
Lower transfer fees compared to arranging a new lease
Comprehensive insurance and maintenance included
Share resources about why switching to an electric car makes financial and environmental sense, or use our EV savings calculator tool to demonstrate potential savings.
Step 4: Complete the Application Process
Work collaboratively with your chosen replacement employee to complete all required paperwork accurately and promptly.
Documentation Preparation:
Ensure the new employee provides:
Completed transfer application form
Employment verification from HR
Recent payslips (typically last 3 months)
Bank statements for income verification
Valid UK driving licence
Proof of address
Credit check authorisation
Application Submission:
Submit all documentation to The Electric Car Scheme simultaneously to avoid processing delays
Double-check all forms are signed and dated correctly
Ensure contact details are accurate for all parties
Retain copies of all submitted documents for your records
Follow-Up Protocol:
Monitor application status regularly through your scheme provider portal
Respond promptly to any requests for additional information
Maintain communication with the new employee to ensure they're also responding to requests
Stay in contact with your HR department to facilitate their approval process
The Electric Car Scheme's support team proactively manages applications and will contact you if additional information is needed. Regular communication helps identify and resolve issues quickly.
Step 5: Address Inspection Findings
Once the vehicle inspection is completed, review the findings and address any identified issues.
Common Inspection Issues:
Minor bodywork damage (scratches, small dents)
Interior wear or staining beyond fair wear and tear
Tyre wear requiring replacement
Charging cable or equipment damage
Missing documentation or service records
Resolution Options:
Repair Before Transfer: Have issues professionally repaired to ensure smooth transfer
Negotiate Cost Sharing: Discuss sharing repair costs with the new employee if both parties agree
Adjust Transfer Terms: Some minor issues might be accepted with documentation
Professional Cleaning: Deep cleaning often resolves interior concerns cost-effectively
Understanding electric car maintenance requirements helps you keep vehicles in transfer-ready condition throughout your lease.
Step 6: Finalise Documentation and Handover
Once all approvals are secured and any issues resolved, complete the final transfer stages.
Pre-Handover Checklist:
Confirm all parties have signed updated agreements
Verify the new employee's insurance is active
Ensure employer has processed payroll adjustments
Confirm your own insurance has been cancelled or adjusted
Gather all vehicle documents, keys, and charging equipment
Handover Meeting:
Schedule a comprehensive handover session with the new employee to:
Transfer all keys, charging cables, and equipment
Demonstrate vehicle features and functions
Explain EV charging basics and best practices
Provide service history and documentation
Complete handover documentation with signatures
Post-Transfer Actions:
Obtain written confirmation from The Electric Car Scheme that transfer is complete
Update your insurance provider immediately
Verify your employer has updated your payroll and tax code
Keep copies of all transfer documentation for your records
Confirm the new employee has successfully registered for the scheme provider portal
Monitoring Your Tax Code:
Check your payslip within 1-2 pay periods to ensure:
Salary sacrifice deductions have ceased
Your tax code has been adjusted to remove the BiK element
No unexpected deductions or charges appear
If you notice discrepancies, contact your HR department and The Electric Car Scheme immediately to resolve them.
Why Choose The Electric Car Scheme for Your Next Electric Car?
Whether you're transferring your current lease or considering your next electric vehicle, The Electric Car Scheme offers unmatched benefits that make us the UK's leading electric car salary sacrifice provider.
Industry-Leading Protection and Benefits
Complete Employer Protection:
Zero financial risk for employers from day 1
No exclusion periods or excess fees
Protection during maternity/parental leave
Coverage for damage and excess mileage
Exceptional Savings:
20-50% savings through salary sacrifice vs personal leasing
Ultra-low 3% BiK rate for 2025/26
Reduced Income Tax and National Insurance contributions
All-inclusive packages covering insurance, maintenance, and breakdown cover
Unmatched Vehicle Choice:
From affordable city cars to premium electric SUVs, our range includes:
New and used electric vehicles
Fast delivery (used cars within 14 days)
Regular special offers and promotions
Award-Winning Service:
Recognised as the Best Salary Sacrifice Provider 2025 by Car Sloth, we're committed to exceptional customer service:
5-star Trustpilot rating
Dedicated support team
Transparent pricing and no hidden fees
Comprehensive guidance throughout your journey
Additional Innovative Services
The Charge Scheme: Beyond vehicle provision, we offer The Charge Scheme—an innovative salary sacrifice solution for EV charging costs. Employees can save 20-50% on all charging expenses:
At home
At work
At public charging networks
This comprehensive approach makes The Electric Car Scheme the most cost-effective way to drive electric in the UK.
Environmental Commitment
As a certified B Corporation, we're committed to environmental and social responsibility:
Supporting the UK's journey to Net Zero
Reducing transport emissions
Promoting sustainable business practices
Creating positive social impact
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Frequently Asked Questions About EV Salary Sacrifice Lease Transfers
Can I transfer my electric car salary sacrifice lease if I change jobs?
If you change jobs and leave your current employer, you typically cannot transfer your salary sacrifice lease to your new employer. Salary sacrifice arrangements are employment-specific benefits tied to your contract with your current employer.
However, you have several options:
Early termination: With The Electric Car Scheme's Complete Employer Protection, your former employer faces zero financial liability when you leave
New application: Apply for an electric car salary sacrifice scheme through your new employer if they offer one
Personal takeover: Some schemes allow you to convert the lease to a personal contract, though you'll lose the salary sacrifice tax benefits
Contact The Electric Car Scheme's support team as soon as you know you're changing employment to explore available options and ensure smooth handling.
What happens to Complete Employer Protection if I transfer my lease?
Complete Employer Protection continues to apply throughout and after the transfer process. When you transfer your lease to another employee:
During Transfer: Your employer remains fully protected throughout the transfer process
After Transfer: Once the transfer completes, the new employee's arrangement is covered by the same Complete Employer Protection
If Transfer Fails: Should the transfer not complete for any reason, your employer's protection remains in place
This comprehensive protection ensures employers can confidently approve transfers without financial risk, making The Electric Car Scheme uniquely positioned to facilitate smooth lease transitions.
Can I transfer my EV lease to someone outside my company?
No, electric car salary sacrifice leases cannot typically be transferred to individuals outside your employing company. Salary sacrifice is an employment benefit that requires:
The recipient to be employed by the same company offering the scheme
Proper salary sacrifice arrangements to be in place
HMRC-compliant salary sacrifice agreements
Employer approval and administrative support
If you need to exit your lease and can't find a suitable transferee within your company, consider:
Early termination through your scheme's provisions
Completing your lease term if only a few months remain
Exploring whether your scheme offers any alternative exit options
The Electric Car Scheme's Complete Employer Protection ensures your employer isn't financially impacted even if a transfer isn't possible.
How does transferring a salary sacrifice lease differ from a traditional car lease transfer?
Salary sacrifice lease transfers involve additional requirements compared to traditional leases:
Additional Approvals Required:
Employer approval (not needed for traditional leases)
Scheme provider approval (The Electric Car Scheme)
HR department processing and payroll adjustments
HMRC compliance verification
Tax Implications:
BiK tax continuity for the new employee
Tax code adjustments for both parties
P11D reporting requirements
Employer Protection:
Complete Employer Protection applies throughout (unique to The Electric Car Scheme)
Employer involvement in approval process
Ongoing scheme membership requirements
Traditional leases only require leasing company approval and simple contract assignment, making them procedurally simpler but without the substantial tax benefits of salary sacrifice.
Will the new employee get the same monthly payment I'm paying?
Yes, typically the new employee taking over your electric car salary sacrifice lease will pay the same gross monthly salary sacrifice amount you're currently paying. The lease terms—including monthly cost, contract duration, and mileage allowance—generally remain unchanged during transfer.
However, the new employee's net cost (after tax savings) may differ from yours if:
They're in a different tax bracket (20% vs 40% or 45%)
They receive different National Insurance benefits based on their earnings
They have different student loan obligations
For example, a 40% taxpayer saves more through salary sacrifice than a 20% taxpayer on the same vehicle, making the net cost lower for higher earners.
Use our salary sacrifice calculator to show the new employee their specific savings based on their individual circumstances.
Can I upgrade to a newer electric car model instead of transferring?
Yes, upgrading to a newer electric car model is often an attractive alternative to transferring your existing lease. The Electric Car Scheme makes upgrading simple:
Upgrade Benefits:
Access to latest EV technology and features
Improved range and faster charging capabilities
Maintained or potentially increased tax savings
Fresh lease term with full warranty coverage
Opportunity to adjust mileage allowance to current needs
Upgrade Process:
Contact The Electric Car Scheme to discuss upgrade options
Review available vehicles and calculate new savings
Complete early termination of your current lease (protected by Complete Employer Protection)
Apply for your new electric car through the standard process
Many employees find upgrading more appealing than transferring, as it allows them to select a vehicle perfectly suited to their current needs whilst maintaining the exceptional 3% BiK rate and 20-50% salary sacrifice savings.
Explore our selection of the best electric cars to salary sacrifice or EVs under £250 per month to see upgrade options.
What happens if the new employee's credit check fails?
If the prospective new employee's credit check doesn't meet the required standards, the transfer cannot proceed. In this situation:
Immediate Impact:
The transfer application is declined
You remain responsible for your existing lease
The vehicle stays in your possession
Your salary sacrifice deductions continue unchanged
Next Steps:
Seek alternative transferees within your company
Consider other options (upgrading, early termination, or completing your term)
The Electric Car Scheme can advise on alternatives based on your circumstances
For the Declined Applicant:
The individual whose credit check failed may still be able to access an electric car through salary sacrifice by:
Improving their credit score and reapplying in the future
Considering a lower-value vehicle with less stringent requirements
Exploring whether a co-signer might be permitted (rare in salary sacrifice)
The Electric Car Scheme's credit check process is designed to ensure applicants can comfortably afford their commitments whilst protecting all parties involved.
Does transferring my EV lease affect my pension contributions?
Transferring your electric car salary sacrifice lease can affect your pension contributions, though the impact depends on your specific pension scheme rules.
Potential Impacts:
Reduced Salary Sacrifice = Higher Pensionable Salary: When you transfer your lease and stop the salary sacrifice deduction, your gross salary (and potentially your pensionable salary) increases. This means:
Higher pension contributions (if based on gross salary)
Increased employer pension contributions
Improved long-term retirement savings
Pension Scheme Variations:
Some employers base pension contributions on pre-sacrifice salary
Others use post-sacrifice salary, which affects contribution amounts
Your specific scheme rules determine the actual impact
For detailed analysis of pension implications, see our guide comparing EV vs pension salary sacrifice.
For the New Employee:
Taking over a lease reduces their gross salary through the new sacrifice deduction, potentially decreasing pension contributions. They should weigh this against the substantial savings from the electric car salary sacrifice arrangement (20-50%) and ultra-low BiK rate (3%).
Many employees find the immediate cash flow benefits and transport cost savings outweigh modest pension contribution reductions, particularly when the lease term is relatively short (2-4 years).
Can I transfer a used electric car salary sacrifice lease?
Yes, you can transfer a used electric car salary sacrifice lease using the same process as transferring a new vehicle lease. The Electric Car Scheme offers both new and used electric car salary sacrifice options, and both types can be transferred.
Used EV Transfer Considerations:
Vehicle Age and Condition:
Inspection becomes even more important for used vehicles
Remaining warranty coverage should be clearly communicated
Service history must be complete and up to date
Battery health reports may be requested
Remaining Contract Value:
Used EV leases may have shorter remaining terms
This can make them more attractive to potential transferees seeking shorter commitments
Lower monthly costs appeal to budget-conscious colleagues
Same Benefits Apply:
3% BiK rate regardless of whether vehicle is new or used
20-50% salary sacrifice savings maintained
Complete Employer Protection continues
All-inclusive packages with insurance and maintenance
Used electric vehicles through The Electric Car Scheme offer excellent value, with delivery in as little as 14 days. Explore our used electric car salary sacrifice options to see available vehicles.
What documents do I need to transfer my electric car lease?
To successfully transfer your electric car salary sacrifice lease, you'll need to gather comprehensive documentation for all parties involved.
Documents from Current Employee (You):
Original salary sacrifice agreement
Vehicle registration documents (V5C logbook)
Complete service history and maintenance records
MOT certificate (if vehicle is over 3 years old)
Recent photographs showing vehicle condition
Charging cable and equipment inventory
Any correspondence with scheme provider or employer about the vehicle
Documents from New Employee:
Completed transfer application form
Employment verification letter from HR
Last 3 months' payslips
Bank statements (typically last 3 months)
Full UK driving licence (both photocard and counterpart if applicable)
Proof of current address (utility bill or council tax statement)
Credit check authorisation and consent
Signed acknowledgement of lease terms and conditions
Employer Documentation:
Transfer approval confirmation from HR
Updated salary sacrifice agreement
Payroll adjustment confirmation
P11D amendment documentation
Insurance updates and confirmations
The Electric Car Scheme's support team provides detailed checklists ensuring you have everything needed before starting the transfer process, minimising delays and complications.
How long do I remain liable after transferring my lease?
Your liability for the electric car salary sacrifice lease typically ends on the date the transfer officially completes and all documentation is finalised. However, several important considerations affect the timing:
Transfer Completion Date:
You remain fully liable until all parties sign transfer agreements
Your salary sacrifice deductions continue until transfer completion
BiK tax applies through your final day of vehicle possession
Insurance coverage must remain in place until handover
Transition Period Liability:
During the brief period between signing transfer documents and physical vehicle handover:
You're technically still responsible for the vehicle
Maintain insurance coverage until the new employee's coverage is confirmed
Avoid using the vehicle once documentation is signed
Report any incidents immediately to all parties
Post-Transfer Considerations:
Prior Damage or Issues:
You may remain liable for damage that occurred during your lease period but was discovered later
Thorough pre-transfer inspection and documentation protects you
Photographs and condition reports create evidence of handover state
Outstanding Charges:
Any excess mileage or damage charges from your lease period remain your responsibility
Settlement typically occurs at transfer, but delayed invoicing can happen
The Electric Car Scheme's transparent process minimises surprises
P11D Tax Reporting:
Your P11D for the tax year reflects only the months you had the vehicle
Your employer reports the benefit up to the transfer date
Ensure your tax code is adjusted promptly to avoid overpayment
Once the transfer completes and is confirmed in writing by The Electric Car Scheme, you have no ongoing liability for the vehicle or lease. However, keep transfer documentation for at least 6 years in case of tax queries or disputes.
Can I transfer my lease if I'm on maternity leave?
Yes, you can transfer your electric car salary sacrifice lease whilst on maternity leave, though the process involves additional considerations around your reduced income and return-to-work plans.
Complete Employer Protection During Maternity:
The Electric Car Scheme's Complete Employer Protection specifically covers maternity and parental leave situations:
No underpayment concerns during reduced-pay periods
Employers face zero financial liability
Flexible options for employees on leave
Transfer Considerations:
Timing Factors:
Consider whether you'll return to work or not
Assess whether you'll need the vehicle upon returning
Evaluate your family's transport needs with a new child
Financial Assessment:
Your reduced maternity pay affects affordability for continuing
Transfer removes the salary sacrifice commitment
Frees up post-tax income for other baby-related expenses
Alternative to Transfer:
If you plan to return to work, consider:
Temporary arrangement adjustments rather than permanent transfer
Discussing payment holidays with The Electric Car Scheme
Maintaining the lease for your return if affordable
For Transferees:
Employees considering taking over your lease should understand:
The vehicle's history and condition thoroughly
Contact The Electric Car Scheme's support team to discuss your specific maternity leave circumstances and explore all available options for your situation.
Get Started with Your EV Salary Sacrifice Lease Transfer
Transferring your electric car salary sacrifice lease doesn't have to be complicated. With The Electric Car Scheme's dedicated support team, Complete Employer Protection, and streamlined processes, we make lease transfers as smooth as possible for all parties involved.
Whether you're looking to transfer your existing lease, upgrade to a newer electric car model, or explore alternatives to meet changing circumstances, we're here to help you find the best solution.
Next Steps
For Employees Currently Leasing:
Review your current salary sacrifice agreement terms
Contact The Electric Car Scheme support team to discuss your options
If transferring, identify potential transferees within your company
Gather required documentation and submit transfer application
For Employees Considering Taking Over a Lease:
Use our salary sacrifice calculator to calculate your potential savings
Review the specific vehicle's condition and service history
Confirm eligibility with your employer and HR department
Prepare required documentation for credit assessment
For Employers:
Review your current electric car scheme policies
Contact us to discuss transfer procedures and approvals
Understand how Complete Employer Protection eliminates your financial risk
Learn about options for supporting employees through transitions
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Last updated: 19/01/2026
Our pricing is based on data collected from The Electric Car Scheme quote tool. All final pricing is inclusive of VAT. All prices above are based on the following lease terms; 10,000 miles pa, 36 months, and are inclusive of Maintenance and Breakdown Cover. The Electric Car Scheme’s terms and conditions apply. All deals are subject to credit approval and availability. All deals are subject to excess mileage and damage charges. Prices are calculated based on the following tax saving assumptions; England & Wales, 40% tax rate. The above prices were calculated using a flat payment profile. The Electric Car Scheme Limited provides services for the administration of your salary sacrifice employee benefits. The Electric Car Scheme Holdings Limited is a member of the BVRLA (10608), is authorised and regulated by the FCA under FRN 968270, is an Appointed Representative of Marshall Management Services Ltd under FRN 667174, and is a credit broker and not a lender or insurance provider.
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