Leasing an EV
With savings on tax, fuel, maintenance and more, leasing an electric car through the workplace brings huge benefits for employers and employees
Published: 19 December 2019
This Article was Written by: Katie Hill - My Green Pod
This article first appeared in our Consumer Revolution issue of My Green Pod Magazine, released on 19 Dec 2019. Click here to subscribe to our digital edition and get each issue delivered straight to your inbox
‘We have to act now to avoid sleepwalking further into a health catastrophe’.
These are the words of Octopus Electric Vehicles CEO Fiona Howarth, who spoke out last month about ‘the need for speed’ within the electric revolution.
According to recent research, air pollution kills 100 people in the UK daily. We all know green is good and change is needed; paper straws are a great start, but one of the biggest factors behind the catastrophic climatic changes is transport.
Emissions from the UK’s transport industry have fallen just 3% since 1990, yet the energy sector has managed a 59% cut. The legally binding aim for ‘Net Zero’ by 2050 can feel a little suffocating (ironically), but it is achievable if we all work together.
Benefits of leasing an EV
- Payments taken through your gross salary, before tax and NI
- Savings are based on your tax bracket; a 40% tax payer can save 40% on
their monthly cost
- No deposit or up-front payment
- Price includes insurance, servicing and Europe-wide roadside assistance
- An incredible car with cutting-edge tech
- Cost-free savings with lower NI contributions
- Employee retention
- Your own account manager
- Bespoke test drive events at your workplace
- No financial outlay, and minimal impact on payroll
- Environmental kudos
- Workplace chargers
- Impartial and honest advice
Impartial EV advice
As electric vehicle (EV) owners who have worked in the industry for years, the team at Octopus Electric Vehicles is able to offer bespoke and unbiased advice on making the switch to an electric car.
‘I lease a Nissan LEAF through the salary sacrifice scheme at work and I really enjoy driving electric. The monthly amount comes directly out of my monthly gross salary. This covers the car, breakdown cover, servicing and maintenance, so it’s pretty much my full monthly motoring costs. As this payment comes out before tax and NI, it’s reduced by around 40%.
‘I have to pay ‘Benefit in Kind’ tax on this as it’s seen as a fringe benefit, though Benefit in Kind rates for electric cars drop to 0% next year, and my monthly costs will fall considerably as a result: the savings will be around £200. I didn’t pay anything up front, and everything was taken care of – it was all very easy.’
Head of fund management, Octopus Investments
The EV leasing company’s bundles include a free consultation that helps customers understand which EV is best for them and their lifestyle. This isn’t just about the car, but also the charging, energy tariffs and demystifying the experience of driving a vehicle that doesn’t run on petrol or diesel.
The goal is to ensure everyone has the smoothest possible transition to sustainable driving. There’s no catch: it’s just about getting more people into EVs and making sure they’re comfortable behind the wheel.
Going green can bring huge savings – whether in your transport choice or your energy tariff. While EV prices are trending towards the more luxury end of the car market, prices have come down massively and amazing new options have hit the forecourts in the last six months alone.
Leasing an EV on salary sacrifice
Offered by employers to their employees, salary sacrifice is an amazing opportunity to lease a brand new EV at a reduced cost. This tax-efficient method entails an all-in-one monthly payment for an EV, insurance, maintenance and roadside assistance, to be taken out of your salary prior to any tax reductions.
Unlike having a company car, salary sacrifice is open to every worker. Brilliantly, the government has set Benefit In Kind at 0% come April 2020, with annual increases of just 1% for the following couple of years.
Essentially, if you happen to work for a company and happen to have a car, it’s a no-brainer. No initial payments, huge savings during the lease term, access to experts as you get up to speed with your new EV and no obligation when the leasing term ends. The solution works for employers, too: with savings on NI payments and support from an Octopus EV accounts manager, it’s the future of sustainable business.