Top 5 EV salary sacrifice benefits for employees

Looking to boost employee happiness but not quite sure how our salary sacrifice scheme fits into the picture? We’re here to help. In this blog, we’ll take you through the incredible perks of our scheme - like major cost savings and alignment with sustainability goals - and how they’ll make a real difference to your team.

Let's dive in:

Switching to an electric car through electric car salary sacrifice schemes allows your employees to save. From tax savings to lower running costs, here's how they can save money while driving a premium EV:

Leasing an EV through a salary sacrifice scheme can make driving electric significantly more affordable for employees:

• Lower lease costs through salary sacrifice: Payments are taken from your pre-tax salary, reducing your taxable income and saving you up to 40%, depending on your tax bracket.
• Benefit in Kind (BiK) tax savings: As part of a salary sacrifice scheme, employees pay BiK tax on their EV at just 2% until April 2025 - much lower than up to 37% for petrol or diesel vehicles. This makes driving a company-provided EV much more cost-effective.

Want to see how much you could save? Try our salary sacrifice calculator.

Beyond tax and salary savings, EVs offer significantly lower running costs compared to petrol or diesel cars. Charging an EV at home can cost as little as 3p per mile - just £8 for a full charge on an MG4 EV, compared to around £50 to fill up a petrol Renault Clio for the same journey.

Additionally, EVs have fewer moving parts, reducing long-term maintenance costs.

And with schemes like the Octopus EV salary sacrifice scheme, all costs are included - from maintenance and insurance to road tax, saving you even more. This means no unexpected expenses, just a predictable monthly cost for everything.

The UK government is actively encouraging the switch to electric vehicles by offering several valuable benefits:

• Vehicle Excise Duty (VED) exemption: EVs are exempt from road tax until April 2025, saving drivers around £200 per year.
• Congestion charge exemptions: EVs are exempt from charges in clean air zones like London and Birmingham until December 2025, potentially saving up to £15 per day.

Salary sacrifice schemes make it easier for employees to access the best electric vehicles on the market. By offering EV leasing as part of a green employee benefits package, employees can stretch their vehicle payments over time, making them more affordable and accessible.

The best part? With Octopus EV, the process is even simpler. Employees can skip the hassle of large deposits or personal credit checks, making the transition to an EV stress-free. It’s a win-win: your employees enjoy a brand new EV, while your business boosts its appeal as an eco-savvy and sustainability-driven company.

"My MG4 was then delivered on the day expected with no problems at all. The whole experience was excellent." - Magda

Electric vehicles are a game-changer for the planet and a step forward for employees passionate about sustainability. EVs produce fewer carbon emissions than petrol or diesel vehicles, making them the perfect fit for eco-savvy individuals looking to reduce their carbon footprint.

By opting for an EV, employees can feel good on their daily commute as they're taking proactive steps to live more sustainably. And that's not all; driving an EV makes the air cleaner since they release zero tailpipe emissions. This results in better air quality in public spaces, improving the health of employees, their families, and society in general!

Octopus EV's salary sacrifice scheme takes the hassle out of going electric with our all-inclusive package. Everything is wrapped up in one simple payment, making it easy for your team.

Here's what's included:

• An electric car
• Discounted energy tariff
• A free home charger
• 4,000 miles of free charge when they switch to Intelligent Octopus Go (or 4,000 free miles with Electroverse if they choose the public charging offer as opposed to the home charging offer)
• Fully comprehensive insurance
• Servicing, maintenance, repairs, and breakdown cover

And it's really easy to sign up. All we need to do is a quick background check of your business finances to determine how many electric vehicles you can lease. Once that's sorted, we'll send over a bit of paperwork for you to sign, and you'll be on your way to offering EVs as a sustainable employee perk in no time. It's that simple!

"One of the things I really like about the Octopus EV scheme is that it’s the full package. The charger, plus the Octopus Energy tariff - I think the whole offer is really attractive."- Neil Clark

Planet Officer at TPXimpact

The UK government has announced that it will ban petrol and diesel cars by 2035 as part of its fight against climate change.

For drivers, this means that switching to EVs is no longer a question of "if" but "when".

By offering EVs through salary sacrifice arrangements, you're ensuring your employees are prepared for these future legislation changes, which allows them to stay ahead of the curve. By driving an EV now, employees not only future-proof their commute but also enjoy the financial and eco-friendly benefits electric vehicles have to offer.

Ready to electrify your employee perks with Octopus EV's salary sacrifice scheme? From significant cost savings to being prepared for future legislation changes, EVs are your ticket to fuelling employee happiness.