HSBC Offers UK Staff to Lease Teslas & Other EVs with Pretax Pay

by Eva Fox May 31, 2022

HSBC Offers UK Staff to Lease Teslas & Other EVs with Pretax Pay

Photo: filmyak/Imgur

HSBC Holdings Plc has offered its UK employees the opportunity to rent Teslas and other brands of EVs with their pre-tax paychecks as it represents a way for workers to cut travel emissions.

One of the world's largest financial conglomerates, the UK's largest bank by assets and market capitalization, HSBC Holdings Plc, has made a good offer to its employees, people familiar with the matter said Bloomberg. All of the bank's 35,000 employees are eligible to lease the new electric car for two to four years, with the option to buy it from HSBC at the end of the contract.

More than 200 models are available for lease, including vehicles from market leader Tesla. Tesla cars are very popular in the UK and its Model 3 has repeatedly been the best-selling car in the country, outselling the most popular cars with internal combustion engines. Obviously, a lot of HSBC employees will want to take advantage of the opportunity and buy a Tesla car.

The agreement offers big savings as the UK income tax rate reaches 45%. Under UK tax rules, electric or hybrid vehicles are also subject to a low benefit-in-kind tax, making them particularly cost-effective. The current tax for employees using such a benefit is 2% for a vehicle with an electric range of 130 miles or more.

“Supporting the transition to net zero is a vital part of our UK strategy,” said Ian Stuart, chief executive officer of HSBC UK, the bank’s British retail banking subsidiary.

© 2022, Eva Fox | Tesmanian. All rights reserved.


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Article edited by @SmokeyShorts, you can follow him on Twitter

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