Octopus Electric Vehicles has launched a new leasing service – Electric Dreams – offering salary sacrifice schemes to cut the cost for employees if they switch to electric vehicles.
According to Octopus, drivers already signed up are saving an average of £14,445 over three years, by sacrificing some pre-tax salary in return for a new electric car.
The benefit is made possible due to the low Benefit in Kind (BiK) tax rates on electric cars, which is just 1% for tax year 2021-22, and 2% for the three years following.
Octopus has designed its scheme to be low effort and zero cost for businesses to set up. It provides advisors to help employees choose their cars and get set up with charge points and EV energy tariff, and there is support for businesses with scheme documents, approvals and payroll.
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.”
Fifteen companies are already live on the scheme, including Huel and Purplebricks, making it available to 1,491 employees across the UK.
James McMaster, CEO at Huel, said: “We’re not the sort of company that would go with a traditional car scheme. Being able to offer something that promotes cleaner transport has been a real benefit to helping our team live our mission of a more sustainable world – they are amazed at what a brilliant deal this is.”