How much does an electric car cost through salary sacrifice? And what’s included?
Our electric car salary sacrifice scheme is a great employee benefit that allows teams to get the best new electric cars, paid for through their gross salary. This means they can make big tax savings on the cost of the car.
As an employee, with salary sacrifice, you pay for your brand new electric car from your gross salary. This reduces your take-home pay, which lowers the amount of Income Tax and National Insurance you have to pay overall. You can save up to 40% on the cost of a brand new car using salary sacrifice, depending on how much tax you pay.
The payment for your car comes out of your salary each month and includes the whole package. The car, maintenance, insurance, tyres, MOT and roadside assistance from the AA. We even throw in a free home charger or (if you don’t have off-street parking) 5,000 free miles on with Octopus Electric Universe to get you on the road.
With our electric car salary sacrifice scheme, all of your car running costs are covered. So when you take into account the savings made through Income Tax and National Insurance and the savings on running costs, salary sacrifice almost always makes leasing a brand new electric car cheaper than buying a car.
Joining our salary sacrifice scheme is easy and completely free for employers to set up.
How much does an electric car cost through salary sacrifice?
How much you’ll pay for your salary sacrifice car depends on a few factors. These include your:
- Annual salary
- Expected annual mileage
- Length of the agreement
The savings you’ll make by paying for your car through salary sacrifice depends on how much tax you pay. Depending on your salary, you could save up to 40% off the whole EV package.
Because your electric car is a benefit through your employer, you’ll have a small amount of Benefit in Kind (BiK) tax to pay. This is currently 1% and increases to 2% in April 2022 for electric cars. It’s set at 2% until 2025. This is a lot less than you’d pay for a hybrid car, which attracts a BiK of 13% on average, or a petrol or diesel car which you’d pay a BiK rate of up to nearly 40% for.
Use our handy quote tool to see how much you could save on your favourite electric car.
What’s included in an electric car salary sacrifice scheme?
We offer absolutely everything that you need to hit the road in your new electric car. There’s nothing for you to think about, other than getting charged up to get from A to B.
Brand new electric car
Take your pick from our 28 makes and 67 models of brand new electric cars to suit your needs. Seem like a daunting choice? No worries. Our EV experts will help you understand how driving electric can work for you, whatever your lifestyle.
Unlike a typical lease, you won’t make an upfront payment for a car on our salary sacrifice scheme. So you’ll know exactly how much you’ll be paying for your car out of your monthly income, without needing to factor in a lump sum at the start.
Electric car charger and installation
We’re part of the Octopus Group, so we’re lucky to have a sister company dedicated to installing electric car chargers. Working with Octopus Energy Services, we’ll provide and install your home charger completely free of charge. We’ll take care of everything, so there’s no hassle for you having to buy the charger and find a professional to install it.
If you don’t have a driveway or the off-street parking needed for a home charger, we’ll give you 5,000 miles worth of credit with Electric Universe. The public charging network in the UK has over 50,000 charging points, which makes switching to electric easy for those without a driveway.
The Intelligent Octopus tariff from Octopus Energy is designed especially for electric car drivers. The tariff gives you 6 hours of super-off peak green energy from 11.30pm to 5.30am. Simply plug your car in when you go to bed and wake up with a topped up vehicle in the morning. Your car is ready to go when you are.
Most employers choose to take our insurance as part of their salary sacrifice scheme, so you’ll never have to worry about renewals or additional monthly payments for fully comprehensive insurance on your new electric car. It’s all included in your monthly payment.
Servicing, maintenance and repair
Our salary sacrifice scheme includes servicing of the car to keep it in tip-top shape. Your maintenance is covered by your monthly payments, so you don’t have to worry about any unexpected repair bills.
With our salary sacrifice scheme, you’ll get access to roadside assistance for breakdown and recovery from the AA, so you’ll always be well looked after on the road.
We cover punctures and sidewall damage, and we’ll replace all four tyres on your car within Fair Wear and Tear conditions within 20,000 miles, free of charge.
Nobody wants to worry about an unexpected bill when they return their car at the end. We give you a £500 damage waiver over and above any Fair Wear and Tear on return so you’re covered for any minor scrapes, scratches or repair work.
With our electric car salary sacrifice scheme, all you need to do is charge the car, get out on the road, and enjoy it! We’ve covered everything else for you in one easy payment, all while saving you money.
With Octopus Electric Vehicles you get absolutely everything under one roof. You never have to find another insurance broker to cover your car, or garage to do your repairs. We’ve got it all covered for you.
Salary sacrifice is the hassle-free way to keep your car pristine and running in tip-top shape.
Joining our salary sacrifice scheme is easy and it’s totally free for employers to join.