How to get an electric car on the NHS with salary sacrifice

Looking for a smart way to drive a brand-new electric vehicle while working for the NHS? An NHS car lease via salary sacrifice could be exactly what you need. This guide explains how the scheme works, who’s eligible, and why it can be a fantastic deal - provided your NHS Trust takes part.

A salary sacrifice scheme allows you to pay for an electric car from your gross (pre-tax) salary. By doing so, you reduce your taxable income - which can result in substantial tax and National Insurance (NI) savings. However, keep in mind that not all NHS Trusts offer this option; we currently partner with select Trusts under CCS (Crown Commercial Service).

• Reduced monthly costs: Your lease payment comes out of your gross salary, helping you save on tax and NI.
• Convenient and all-inclusive: Insurance and other costs are often wrapped into the lease, making budgeting easier.
• Eco-friendly travel: EV-specific salary sacrifice schemes can help you get hold of the latest eco-friendly travel, cutting carbon emissions, and aligning with the NHS’s sustainability goals.
• Modern tech and comfort: You get to enjoy a brand-new EV, complete with the latest safety and infotainment features.

Exact eligibility criteria vary by Trust, but in general, NHS employees who meet certain employment conditions (e.g., minimum contract length, a gross basic salary above a certain threshold) can qualify. Always check with your HR department to confirm your Trust’s participation and any specific requirements.

Important: If your NHS Trust hasn’t opted into a CCS framework (or a similar arrangement) for salary sacrifice, you won’t be able to access these benefits. But you can always try to convince your Trust to sign up.

According to the Crown Commercial Service:

“CCS publishes commercial agreements for common goods and services so public and third sector buyers can find what they need and buy at competitive prices. We call these frameworks.”

If your Trust has chosen to procure services via CCS frameworks, you may be able to access an EV salary sacrifice scheme. This often means simpler processes, competitive rates, and a smooth path to getting behind the wheel of a low-emission vehicle.

Eligibility varies by Trust. Generally, you need:

• A qualifying employment contract
• A gross basic salary above a certain threshold
• Confirmation your Trust participates in a CCS framework or has a relevant salary sacrifice arrangement

Tip: Always check with your HR department to confirm your Trust’s involvement. If they’re not part of a relevant framework, you might not be able to access salary sacrifice benefits.

1. Reduced monthly costs

Lease payments come from your gross salary, lowering your taxable income and potential NI contributions.

2. Lower Benefit-in-Kind (BiK) rate

Electric cars typically have much lower BiK rates than petrol or diesel vehicles. At the moment, EVs can have a BiK rate as low as 2%.

3. Cheaper running costs

Charging an EV is often significantly cheaper than buying fuel. Plus, electric motors have fewer moving parts, making them cheaper to maintain.

4. Insurance and maintenance

Most salary sacrifice schemes wrap insurance and sometimes servicing or breakdown cover into a single monthly payment, streamlining your outgoings. For example, with Octopus EV’s salary sacrifice scheme, everything from insurance to tyres is included in your package.

5. Reducing your carbon footprint and contributing to cleaner air

EVs align perfectly with the NHS’s sustainability goals, helping reduce air pollution and contributing to a healthier environment for staff, patients, and the wider community.

1. Check your Trust’s status

Confirm whether your Trust has signed up for a CCS framework that includes an EV salary sacrifice scheme.

2. Review your eligibility

Meet the necessary employment criteria (e.g., contract length and salary level).

3. Select an electric car

Choose from our zero-emission models, considering factors like range and charging times.

4. Sign your agreement

Finalise the lease via salary sacrifice, and your monthly cost is taken out of your gross salary.

5. Drive and save

Enjoy reduced fuel and maintenance costs while making a positive impact on the environment.

A: It depends on your specific Trust. Only those Trusts procuring services through a relevant CCS framework (or another approved arrangement) can offer an NHS car lease via salary sacrifice. Speak to HR to learn your options.

A: Typically, these schemes focus on electric or low-emission vehicles. You’ll have a selection of EVs - but the exact range can differ based on your Trust’s agreements. With Octopus EV, we only offer electric vehicles.

A: Unfortunately, if your Trust hasn’t opted into these arrangements, you won’t be able to use the salary sacrifice benefits we offer. You can still check with HR to see if other lease or benefit schemes exist.

A: Many salary sacrifice programmes let you lease the car without a deposit; monthly costs are simply deducted from your gross salary. But always verify details with your HR department or scheme provider. With Octopus EV, we want to make it as hassle-free as possible - so you don’t need to pay a deposit or go through any personal credit checks when it comes to our salary sacrifice scheme.

A: Leaving mid-lease may require additional fees or buyout costs. Check your contract for specific terms.

Yes, if your NHS Trust is part of a relevant CCS framework.

By partnering with CCS, we can offer eligible NHS employees the chance to drive a brand-new electric car at a reduced cost through salary sacrifice. If you’re unsure whether your Trust is part of CCS, check with your HR department to see if you qualify.

Once confirmed, you can enjoy lower monthly payments, significant tax savings, and the satisfaction of driving a zero-emission car - all while supporting a greener NHS.