A new leasing scheme in the UK is providing tax-efficient access to an electric vehicle for employees who do not qualify for a company car.
Octopus Electric Vehicles has launched its Go Green Car Scheme, based on salary sacrifice. The scheme allows employees to pay for an electric car through their pre-tax income. This means employees save 12% on their National Insurance contributions as well as 20% or 40% depending on their marginal income tax rate. And with electric cars zero rated for company car tax in the UK for the next year, there are no benefit in kind contributions.
As the lease rentals are taken directly from payroll, Octopus requires no deposits or credit checks. The monthly payments cover the cost of the vehicle, servicing and roadside assistance.
There are no costs to employers, beyond administration, and there are even some savings on National Insurance contributions.
Fiona Howarth, CEO of Octopus Electric Vehicles, said: “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.”