Octopus Electric Vehicles has launched salary sacrifice scheme Go Green Car Scheme for businesses and workplaces.
Salary sacrifice schemes work by allowing employees to purchase a new car from their salary before tax or NI has been deducted.
This means employers save on national insurance contributions for every staff member on the scheme, while employees save on national insurance and income tax contributions.
Octopus said the new benefit-in-kind rates for 2020/21, which sees zero tax for drivers of fully electric cars, means its salary sacrifice scheme enables price parity for EVs with equivalent petrol or diesel vehicles while EVs, although typically more expensive upfront, are the most affordable cars to run.
Fiona Howarth, CEO of Octopus Electric Vehicles, says: 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 CO2 a year.
“EVs aren’t just good for our planet, they’re unparalleled in their cheap running costs.
“If you’re a business owner or employee, you can benefit from the new tax break to support a cleaner transport system.”
Octopus says if the tax savings are combined with the potential running cost savings from fuel and maintenance, an average car driving employee could retain up to £7,000 in a four-year period compared to a petrol or diesel car.
Howarth says the Octopus scheme offers every EV available with a range of at least 100 miles.
Octopus Electric Vehicles, which is part of the Octopus Energy Group, was launched in 2018 and also offers charge point installations and specific electricity tariffs for EV owners.
In January it launched a new bundle for fleets to make the switch to plug-in vehicles.