Octopus launches salary sacrifice scheme to capitalise on new BiK rates
Octopus Electric Vehicles has entered the salary sacrifice arena as it looks to help employees make the most of new Benefit-in-Kind ratings.
Dubbed The Go Green Car Scheme, the new scheme has been set up to coincide with the introduction of the BiK tax changes from today (6 April 2020), which bring the EV tax rate down from 16% to 0%.
According to Octopus, the BiK changes mean that an employees can save an average of £7,000 over four years by signing up to the scheme while also benefiting from lower maintenance, road tax, tolls parking costs and reduce personal CO2 emissions over a three year period. Businesses also benefit by saving on national insurance contributions per employee on the scheme.
It says the scheme enables price parity with equivalent petrol or diesel vehicles – making it easier to access electric cars.
As well as savings on National Insurance and tax, employees can also pay 90% less for filling up the car according to Octopus, helped by time-of-use tariffs such as Octopus Go, which enable drivers to charge an EV for just 1p per mile.
Fiona Howarth, CEO of Octopus Electric Vehicles, said: “We are currently experiencing a climate crisis, and the transport industry needs a serious shake-up to help the UK reach net zero by 2050. Right now, it contributes a third of UK emissions – and the average UK car produces a shocking 1.6 tonnes of C02 a year.
“EVs aren’t just good for our planet, they’re unparalleled in their cheap running costs. Our scheme removes the initial barrier of a top-quality new car’s cost to ensure they’re accessible and extra-affordable. And it doesn’t stop there: we work with everyone eligible in a company to ensure they have the framework and support to maximise the benefits of their ‘tech on wheels’ new car.
“If you’re a business owner or employee, you can benefit from the new tax break to support a cleaner transport system – as well as a potential £7,000 saving. Not to forget that these cars are just incredible.”