Top 5 EV salary sacrifice benefits for employees

Thinking about offering an EV salary sacrifice scheme, but not totally sure what your team actually gets out of it? 

Basically, it’s a way for employees to drive a brand-new electric car without the usual cost. Payments come out of their gross salary, so there are tax savings baked in, and most of the big costs are rolled into one tidy monthly amount.

Here are five of the biggest benefits it brings to your employees.

Let’s start with the obvious one.

For most employees, cost is the biggest question mark when it comes to driving a new car. An EV salary sacrifice scheme can change the maths in their favour. The savings usually show up in four main ways:

• Lower tax and National Insurance: Payments come from pre-tax salary, reducing taxable income and potentially saving drivers up to 40%. EVs also come with just 4% Benefit-in-Kind tax until April 2027, compared to up to 38% for petrol or diesel cars.
• Lower running costs: EVs usually cost less to run, because home charging can be very cheap. In fact, if you’re on our salary sacrifice scheme, you’ll get our exclusive rate of just 8p/kWh on our Intelligent Octopus Go tariff. But even using public chargers, running costs are often lower than petrol or diesel. Fewer moving parts also means less maintenance over time.
• Government perks: The Electric Car Grant gives many drivers a discount of between £1,500 and £3,750 on eligible cars priced at or under £37,000. EV drivers get discounts on Vehicle Excise Duty (road tax), and often pay reduced or no fees in clean air zones. 

Whether they’re buying, leasing, or using salary sacrifice, drivers save an average of £5,850 over the car’s lifetime. Home charging delivers the biggest savings, but even public charging can beat petrol or diesel, depending on usage and local tariffs.

Let’s be honest: EVs can be pretty pricey. So, one of the best things about salary sacrifice is that it lets your employees drive one without the heart-stopping upfront deposit. Spreading the payments over time makes a brand-new EV more doable for many people.

We offer a range of EVs, from the MG4 and the Hyundai Kona Electric to the Volkswagen ID.3, so there’s plenty of choice for different needs.

And because we keep the paperwork simple and don’t do credit checks, getting behind the wheel of a better car is usually super smooth and pain-free.

For Ben Burrows, Interim Chief Medical Officer at Sirona Care & Health, the combination of a nicer car and big cost savings made the switch a no-brainer.

“Before getting my electric car, I had a Golf GTI,” he says. “The BMW i4 is far more rapid, enjoyable, and comfortable. And when I charge at home on Octopus Energy’s agile tariff, it costs just £6 or £7 for a full charge. It’s a huge saving compared to petrol.”

For most people, salary sacrifice makes driving a nicer, greener car more realistic than they might have expected.

We know that getting a new car can be stressful. Big deposits, unexpected maintenance costs, confusing paperwork… it’s enough to put anyone off. With our salary sacrifice scheme, most of the big costs are bundled into a single monthly payment, which can make life a little easier for your team.

Maintenance

Servicing, maintenance and repairs to keep your car in top condition.

Breakdown cover

At home or on the road breakdown assistance included.

Insurance

Comprehensive insurance included as standard.

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Of course, it won’t work for everyone. Some people prefer having more control over their car and how they pay for it. But for Sarah Whurr, Head of Sustainability at GB Railfreight, it’s made the process much simpler.

“Salary sacrifice has been a really good deal for myself financially,” she says. “The payment I make also includes all my insurance, my maintenance. I don't have to think about anything.”

With the sale of new petrol and diesel cars banned from 2030, and hybrids banned from 2035, we’ll all be driving EVs in the near future.

Offering EVs through a salary sacrifice scheme gives your employees a head start. It helps them get familiar with electric driving, adapt to new charging routines, and enjoy the savings and eco-friendly benefits that come with EVs. 

Not every employee will switch immediately, but those who do can future-proof their commute and feel more prepared for the changes ahead.

One of the biggest motivations for driving an EV is helping the planet. Every mile on electricity instead of fuel is a tiny high-five to the environment.

James at Vegner Group has noticed a difference in staff morale since signing his business up to the scheme. “Our employees love being able to get a nice car that’s sustainable and affordable,” he explains.

Sure, they’re still commuting and stuck in traffic sometimes, but now they can feel a little better about it.

Our salary sacrifice scheme makes it easier for employees to drive an EV, with bundled costs, potential savings, and a head start on future driving regulations. It’s not a solution for every challenge, and not every employee will take part. But for those who do, it’s a practical, sustainable perk that can make their daily commute and running costs a little easier.

Ready to get started?

Sign your company up today.