How does salary sacrifice work?

If you don't have a corporate fleet, you could still incentivise your staff to transition to electric vehicles by offering a salary sacrifice scheme, allowing your team to access a fantastic range of electric vehicles with no upfront cost by paying for their vehicle from their salary before tax.

Because of this reduction in salary, there is a subsequent reduction in income tax and national insurance payments for your employees, as well as in Employers' National Insurance payments for you - so money that would normally go straight to HMRC now goes towards your employee's car payments.

Our partner, Octopus EV, offers a salary sacrifice scheme with a number of tax and personal benefits savings for employees.

The salary sacrifice scheme is totally free for employers to set up - so you get to bolster your employee benefits package, while your team are able to save up to 40% on a new electric vehicle lease plan.