New EV leasing company to provide businesses the benefits of salary sacrifice schemes
Octopus Energy has launched a new electric vehicle (EV) leasing company to provide companies of all sizes the benefits of salary sacrifice schemes.
In return for a single monthly sacrifice tax-free from their salary, each employee who orders an EV will benefit from a fully insured and maintained EV, access to EV specialists and zero deposit costs.
The Electric Dreams scheme is available due to the low Benefit in Kind (BiK) tax rates for EVs. BiK tax is just 1% for the tax year 2021-22, and 2% for the three years following. In comparison, combustion vehicles are still subject to an average of 27% BIK tax when using salary sacrifice.
Drivers already signed up are saving an average of £14,445 over three years, by sacrificing some pre-tax salary in return for a brand new electric car.
Octopus has designed the scheme to be low effort and zero cost for a business to set up. Businesses of all sizes are eligible for the scheme.
So far 15 companies are already live on the scheme, including Huel and Purplebricks, making it available to 1,491 employees across the UK so far.
Drivers who place an order before July will also get a smart home charge point installed for free. And those with Octopus Energy will receive enough free renewable energy to drive 8,000 miles, enough to power the average UK driver for a year.
Over 30 cars are currently available on the scheme, including Porsche, Renault, Jaguar, Polestar and Tesla.
Fiona Howarth, CEO of Octopus Electric Vehicles, said: ‘Businesses and employees across the UK are searching for ways to do their bit for the environment. We have seen a seven-fold jump in salary sacrifice enquiries in the last year.
‘If businesses in the UK introduce a scheme like this, they have the power to significantly reduce transport emissions across the UK by 2030.’