More than 1,500 companies have joined Octopus Electric Vehicles salary sacrifice scheme since it launched just over a year ago.
The salary sacrifice scheme for electric cars provides an all-in-one service for drivers looking to make the switch. The scheme is the next step in the company’s mission to help businesses reduce their carbon footprint and drive the UK’s transition toward zero emission transport. Since launching to the market, it has grown by 22% on average each month, with companies of different sizes and sectors joining the scheme, including household names such as McLaren, Dyson, RES and Nando’s.
To manage growing demand, Octopus Electric Vehicles has also expanded its team significantly, hiring 126 new staff across its offices in London and Weybridge over the past year.
An EV salary sacrifice scheme is an attractive employee benefit where employers can offer their staff the use of a brand new electric car with a saving of 30% or more by paying through their gross salary, saving thousands of pounds on both national insurance and income tax. There is a small amount of Benefit-in-Kind (BiK) tax to pay, but it is very low compared to the savings, with the BiK rate for EVs set at 2% until 2025.
Due to these favourable tax rates, salary sacrifice on an EV works out cheaper than a personal lease of a petrol or diesel car. Encouraging staff to go electric also reduces their impact on the environment and provides a visible commitment by the employer to the planet and reducing local air pollution.
Octopus Electric Vehicles offers companies over 65 models to choose from, all with an average of 215 miles in a single charge. The package includes servicing and maintenance, breakdown cover with the AA, as well as a free charge point at their home or 5,000 miles on the public charging network. Octopus also offer an energy tariff designed for EV drivers for those who charge at home, making it a one-stop-shop for those looking to make the switch to electric. The tariff takes advantage of low cost green power when the UK sleeps, making it cheaper to fuel an EV by up to 87% vs an equivalent petrol car.
Fiona Howarth, CEO of Octopus Electric Vehicles, said: “Demand for electric cars is soaring, with more than 65 great models now available, especially with petrol prices on the rise. It’s great to see so many businesses want to take a leading role in helping their employees discover the benefits of making the switch.
“Launching a salary sacrifice scheme saves their employees money, letting them drive great cars, while cleaning up the local air in their communities and helping the planet. 2021 was a tipping point for EVs, and now the switch to electric transport is really accelerating. We’re delighted to be helping our clients and their employees as they make the switch.”
Rebecca Constable, Director, People Experience, McLaren Racing, said: “We’re delighted to be using the Octopus Electric Vehicles salary sacrifice scheme. McLaren fully supports the UK’s transition towards zero emission transport and we’re passionate about doing our bit to help. This is a fantastic benefit that our employees love and aligns with our internal goals to become a more sustainable business.”
Octopus Electric Vehicles sits within the wider Octopus Energy Group, which is expanding rapidly having received $900m in funding over the last year, giving it a valuation of approximately $5bn.
Image courtesy of Octopus Electric Vehicles.