THE EV specialist broker, Octopus EV, says it has seen a boom in salary sacrifice since the April changes to benefit in kind.
The leasing broker says it has seen the number of drivers opting to lease an electric vehicle almost double since the tax change compared with the six months prior to April.
The impact has been staggering. The tax changes have been a financial game changer for EV leasing. We are seeing a huge boom, with the number of companies ordering EVs via our salary sacrifice scheme growing five-fold since April.Fiona Howarth, CEO, Octopus Electric Vehicles
According to Howarth, the combination of salary sacrifice and 0% BIK typically cuts monthly leasing payments by 30-40% and eliminates all upfront costs.
A typical example is Octopus EV customer, Steve Smith, who commented:
“I’ve long been interested in EVs, but only just convinced my boss about the salary sacrifice scheme, which has allowed me to drive a Tesla Model 3. The savings from the scheme and the 0% tax mean the cost of my car and electricity are far less than I was paying for my old diesel car and fuel.”
“As employers tighten their belts and employees look for clean and safe ways to travel, our salary sacrifice scheme is a meaningful and low-risk perk for staff. In return for just a few minutes of admin time each month, employers can offer their team huge savings on brand new electric cars, and a personalised service to make the switch easy – from choosing the right car, to getting a charger installed at home, and even selecting an energy tariff designed just for EV drivers. It’s extraordinary value and makes it pay to go electric.”
Ralph Morton is the leading journalist in the leasing broker sector and editor of Broker News, the website which provides information and news for BVRLA-registered leasing brokers. He also writes extensively on the fleet and leasing market in both the UK and Europe.