How to prepare a business case for EV salary sacrifice

Did you know that three quarters of employees want an electric vehicle (EV) salary sacrifice scheme, but over half don’t feel comfortable asking their employer for it?

Brilliant benefits are a no-brainer when it comes to keeping your team happy, but it’s up to business leaders to take the lead. That means spotting opportunities, making the case, and getting key stakeholders on side.

A clear, well-structured business case will get you a long way. But too many proposals fall flat because they don’t connect the numbers with what employees really want.

By combining data on cost savings and emissions reductions with direct feedback from your team, you’ll transform a nice-to-have perk into a strategic, board-room-ready proposal that everyone can get behind.

Salary sacrifice schemes let employees exchange part of their gross pay for non-cash benefits – in this case, an EV. Rather than buying or leasing a car outright, employees agree to a reduced salary that covers the cost of the vehicle, insurance, maintenance and charger installation, all bundled into one monthly payment.

Many companies are under pressure to meet net-zero targets and demonstrate real progress on their corporate social responsibility (CSR) strategy. At the same time, employees increasingly expect their employers to take meaningful climate action, and they want benefits that reflect those values.

An EV salary sacrifice scheme lets you do both in one go: you’ll cut your carbon footprint and show your people you care about them and the planet. In doing so, you’ll make your business more attractive to top talent and your employees more likely to stick around.

For employees, tax efficiency is another big draw: EVs benefit from lower Benefit-in-Kind rates, meaning they pay less tax on their benefit than they would for conventional company cars. And because EVs often cost less per mile than petrol or diesel alternatives, the savings add up quickly.

Building a business case doesn’t need to be a painful task. With the right approach, you can create a clear, compelling proposal that ticks every box for every team in your business – from finance to HR to sustainability. Here’s how to break it down into four simple steps.

1. Set out your objectives

Start by defining your aims: are you reducing carbon emissions or improving your benefits offering? Tie these objectives back to broader strategic goals, such as your net-zero roadmap or wider employee engagement plans. Clear objectives keep your business case focused and make it easier to measure success.

2. Calculate the costs and benefits

When new employee benefits are being weighed up, cost is usually the first question on everyone’s mind. Good news: this one’s easy. From the employer side, our EV salary sacrifice scheme is completely free to set up and run. You could also model the potential environmental impact, or forecast how improved retention and engagement could give your bottom line a boost. And to show how much employees can save, use our salary sacrifice calculator to compare the cost of an EV with a similar petrol or diesel car.

3. Get an idea of employee interest

Including data on employee preferences will give your stakeholders confidence that the scheme will be popular. You could gauge this through a short survey, or by holding benefits focus groups with a diverse selection of employees. Make sure you weave in statistics – like the fact that more than one in four cars sold worldwide this year is set to be electric – to demonstrate that demand is real and rising.

4. Spot any risks and issues

Most schemes come with a few “what ifs”, but the good news is, with Octopus, those worries are well and truly covered. From resignations to sick leave, we protect your business from the unexpected – leaving you with the confidence that your scheme will run smoothly, without any hidden surprises. When you’re building your business case, that kind of reassurance matters. It means you can present a low-risk proposal that ticks every box.

When it comes to presenting your case, it’s not just about what you say; it’s how you say it. A clear, confident proposal that speaks directly to what matters most for each team will go a long way in winning support.

First, tailor the proposal to key stakeholders. Different teams care about different things. Finance will zero in on cost and ROI, HR on employee engagement, and sustainability on carbon targets. Structure your document so each section speaks directly to these interests, using clear, evidence-backed data.

Next, turn complex figures into easy-to-digest graphs and infographics. For example, a chart showing projected CO₂ savings over five years, or a side-by-side comparison of employee savings, can cut through jargon and make your case more persuasive. Include case studies or testimonials from other businesses that successfully rolled out EV salary sacrifice.

And finally, anticipate common questions like “How much admin is involved?” or “What happens if our tax obligations change?” and prepare concise answers. Emphasise that Octopus EV handles the heavy lifting, from payroll integration to vehicle maintenance, so internal teams can stay focused on their core responsibilities.

To make your job even easier, we’ve created a handy guide on how to hit net zero with EV salary sacrifice. It’s a great tool to share with your sustainability team and show exactly how this scheme fits into your wider climate goals.

Building a strong business case for an EV salary sacrifice scheme is all about tying clear objectives to hard data and demonstrating the value to every stakeholder. With benefits spanning financial savings, carbon reduction and employee engagement, the business case practically writes itself. And when you partner with us, it really couldn’t be easier.

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