What is Octopus Electric Vehicles salary sacrifice?
Energy Efficient You is an official partner of Octopus Electric Vehicles. That means we can help you and your business access their market‑leading salary sacrifice scheme for electric vehicles.
But what is it, how does it work, and what’s included? Everything you need to know is below.
What Is Octopus EV Salary Sacrifice?
Salary sacrifice is an employee benefits scheme that allows employees to pay for a car out of their gross monthly pay (before tax). Think of it like the Cycle to Work scheme, but for electric vehicles.
It gives employers and their team the chance to save up to 40% (or more) on the monthly cost of driving electric, while boosting the company’s sustainability credentials.
It’s a win‑win. Employers supercharge their benefits package. Employees make huge savings.
It costs employers zero to set up and is easy to run. No catch. Just great value.
How do the tax savings work?
The employer signs up to the scheme and leases the car on behalf of the employee. Octopus EV bills the vehicle to the business, and the employer provides access to that vehicle as a benefit, recharging the rental through salary sacrifice (payroll deductions).
Employees pay a small amount of Benefit in Kind (BiK) tax, which is currently fixed at 2% until April 2025. After that, it increases by just 1% per year until 2028:
- 2% (until April 2025)
- 3% (April 2025 – April 2026)
- 4% (April 2026 – April 2027)
- 5% (April 2027 – April 2028 and then fixed)
What’s included with Octopus EV salary sacrifice?
- Brand‑new electric vehicle of their choice
- Free home charger with standard installation (by expert Octopus engineers)
- Fully comprehensive insurance (subject to eligibility)
- Servicing, maintenance, and tyre replacement
- Breakdown cover
- 4,000 free miles of home charging (or public charging credit if no off‑street parking)
- Access to Intelligent Octopus Go – the perfect EV tariff (off‑peak rate as low as 10p/kWh)
No driveway? No problem
If an employee doesn’t have off‑street parking for a standard home charger, Octopus EV offers 4,000 free miles of public charging credit on the Octopus Electroverse network instead.
EV energy tariffs from Octopus
Intelligent Octopus is the perfect tariff for EV drivers. Using cutting‑edge technology, it gives drivers super-cheap, green energy overnight (typically 11:30pm – 5:30am) so they can charge their cars when they’re least likely to be using them. Drivers wake up to a fully charged car at a low rate of 10p per kWh.
