With Octopus EV’s salary sacrifice scheme, making the switch to electric has never been more cost-effective.
Employees can save up to 40% on a brand-new or nearly new EV, while also enjoying exclusive perks like a low-cost EV tariff, discounted solar panels, and heat pump solutions to make your salary go further.
- Choose £400 home charging credit, £400 off a home charger or £400 Electroverse credit
- Compatible with Octopus Energy's smart EV tariffs
- Approved Used vehicles available
- Early termination protection built into every lease
Whether you’re an employee looking to cut costs or an employer aiming to boost staff satisfaction and meet ESG goals, the Octopus EV salary sacrifice scheme is the ultimate win-win.
What is a Salary Sacrifice Scheme?
A salary sacrifice scheme is a simple and tax-efficient way to access valuable benefits while saving money. It works by allowing you to ‘sacrifice’ a portion of your pre-tax salary for a non-cash benefit, such as a brand-new EV.
MORE> What is an EV Salary Sacrifice Scheme?
Here’s the key benefit: because the amount you sacrifice comes out of your gross salary, it reduces the amount of Income Tax and National Insurance you pay. This means you’re effectively paying for your EV with money that would otherwise go to taxes.
This arrangement isn’t just great for employees, employers also benefit. By offering salary sacrifice, companies can reduce their National Insurance contributions, boost employee retention, and align with sustainability goals, creating a win-win for everyone involved.
How Octopus EV Makes EV Ownership Affordable
Switching to an electric vehicle doesn’t just help the environment, it can significantly reduce your costs. Unlike traditional leasing or purchasing options, the Octopus EV scheme combines financial savings with a host of exclusive perks to make your EV journey as smooth and cost-effective as possible.
The Full Octopus EV Package: Everything You Need To Go Electric
With Octopus EV, you’re not just getting an electric car, you’re getting the full package. Here’s what’s included:
- Choose Your Charging Reward: Rather than automatically including a home charger, Octopus EV now lets drivers select the option that best suits how they charge:
£400 home EV charging credit on an eligible Octopus Energy smart tariff.
£400 off a professionally installed home charger.
£400 Electroverse public charging credit. - 4,000 Free Miles of Charging: Octopus EV includes 4,000 miles of free charging at home or on the Electroverse public network to get you started on the road.
- Exclusive EV Tariff: With access to the Octopus Intelligent Go EV tariff, you can charge your car at ultra-low rates during off-peak hours, slashing your energy costs further.
- Nearly New Vehicles: For even more savings, you can choose from a selection of nearly new EVs, combining affordability with excellent performance.
- Maintenance and Insurance Included: All essential costs like maintenance, insurance, and breakdown cover are bundled into your monthly payment.
Why This Is Better Than a Free Home Charger
When Octopus EV first launched, most drivers needed a charger installing at home. Today, many households already own a charger, while others rely on the UK’s rapidly expanding public charging network.
By allowing drivers to choose between home charging credit, a discounted charger installation or Electroverse public charging credit, the scheme is now much more flexible and better suited to how people actually use electric vehicles.
Why the Octopus Intelligent Go Tariff is a Game-Changer
The Intelligent Go tariff is designed specifically for EV owners. By offering incredibly low rates during off-peak times, this tariff lets you fully charge your car overnight for a fraction of the cost of standard electricity rates. The tariff also integrates seamlessly with leading smart EV chargers, making it easy to schedule charging when it’s cheapest.
Green Power
Also a £500 discount for green home renewable technology such as heat pumps and solar panels are available for all employees of your organisation, even if they haven’t leased an EV!
Protection and Flexibility
Octopus EV’s salary sacrifice scheme offers Early Termination Protection. This ensures that if your circumstances change (such as leaving your job or going on extended leave) you won’t be left with financial penalties.
Save with Nearly New Vehicles
Octopus EV offers nearly new vehicles as part of the scheme. These cars come with all the benefits of a new EV but at a reduced cost, giving you more value for your money. As well as being even more sustainable.
Real Salary Sacrifice Savings in Action
To truly explore the value of Octopus EV’s salary sacrifice scheme, let’s break down the potential savings with a real-world example. By combining tax savings, exclusive perks, and bundled benefits, employees can dramatically cut the cost of owning and running an EV.
How Salary Sacrifice Works: An Example
Let’s break down how much you can save as a higher-rate taxpayer using Octopus EV’s salary sacrifice scheme. For this example, we’ll use an EV with a monthly lease cost of £700.
1. Monthly Lease Cost Before Tax Savings
- The initial monthly cost of the EV lease is £700.
- This amount includes the vehicle, insurance, maintenance, and breakdown cover, as part of the Octopus EV package.
2. Tax Savings Breakdown
As a higher-rate taxpayer, your salary sacrifice comes out of your gross (pre-tax) income. This means you save on both Income Tax (40% for higher-rate taxpayers) and National Insurance contributions (2% for earnings above the higher-rate threshold).
Here’s how the savings are calculated:
- Income Tax Saving:
- £700 × 40% = £280 saved in Income Tax per month.
- National Insurance Saving:
- £700 × 2% = £14 saved in National Insurance per month.
3. Net Cost After Tax Savings
After accounting for these savings, your monthly lease cost is reduced:
- £700 – (£280 + £14) = £406
4. Total Savings
By using salary sacrifice, you save:
- £700 – £406 = £294 per month
Employer Benefits: More Than Just Savings for Employees
Employers also gain significant advantages by offering this scheme.
- National Insurance Savings: Employers can save up to £500 annually per employee who participates in the scheme.
- Employee Retention: Offering EV salary sacrifice can enhance job satisfaction and encourage loyalty.
- ESG Contributions: Employers meet environmental goals while showing commitment to sustainability, an increasingly important factor for modern businesses.
- Choose £400 home charging credit, £400 off a home charger or £400 Electroverse credit
- Compatible with Octopus Energy's smart EV tariffs
- Approved Used vehicles available
- Early termination protection built into every lease
John is the Editor and Spokesperson for Electric Car Guide.
With over 20 years of writing experience, he has written for titles such as City AM, FE News and NerdWallet.com, covering various automotive and personal finance topics.
John’s market commentary has been covered by the likes of The Express, The Independent, Yahoo Finance and The Evening Standard.
