Have you reviewed your benefits package recently? Did you know that there is a new Electric Vehicle Salary Sacrifice Scheme that you could now be offering your employees?
This specialist scheme is like the modern-day cycle to work scheme, available to help support your employees make the switch to driving electric. You can introduce this fantastic benefit as part of your small business benefits package at no extra cost to your company.
Not only will you be enhancing your flexible benefits package, but you will also be retaining and rewarding your talented employees.
Increasing uptake of more eco-friendly options
As we look towards greener energy and sustainable living, the BBC recently reported that new homes and buildings in England will be required by law to install electric vehicle charging points from next year.
It is understandable that with more charging points being introduced across the country and mandatory measures such as those for new homes, that UK electric cars sales are steadily growing. Around 10% of cars sold in 2020 were electric, up from 2.5% in 2018.
The switch to electric vehicles is part of the UK’s strategy to hit climate targets, with cars and taxis accounting for 16% of UK emissions in 2019. The new Electric Vehicle Salary Sacrifice Scheme is the perfect opportunity for you as a company to get on board with this great initiative and encourage your employees to make the switch.
So how does it work?
Octopus Energy Group has created Octopus EV, the experts on making the transition to clean, green transport. You – the employer – lease the electric vehicles and the additional vehicle services from Octopus EV. You, as a small business then agree to provide the use of the car to your employee in return for sacrificing an agreed amount from their gross salary.
The salary sacrifice will be taken before income tax and national insurance is deducted, allowing employees to save on that monthly cost.
Benefits of the Electric Vehicle Salary Sacrifice scheme
If you’re considering offering this benefit as part of your benefits package it is important to understand the risk and reward before taking the plunge.
- There are no set up costs or minimum requirements
- There are no additional costs for you, as a small business
- Due to insurance covers, the scheme is low risk
- Little administration involved in setting-up and taking advantage of the scheme
- Great incentive for your employees and a real boost for your company’s reputation, especially if there are any sustainability goals the business has set
- Charger incentives that can be taken advantage of
- Credit of 8,000 miles when switching to Octopus Go tariff at home
As an employee, you can save up to 40% on a brand-new electric car with maintenance, tyres and more. As an employer, you can transform your employee benefits package at no extra cost.
If you’d like to discuss your employee benefits package with one of our HR experts or have any other questions, you’d like to discuss book a call at a time convenient to you.