Octopus Electric Vehicles offers a “salary sacrifice” program, enabling drivers to save up to 40% on a new EV by deducting payments from their pre-tax salary, reducing income tax and national insurance costs.
Octopus Energy in the UK has obtained a £500 million loan to grow its program that enables employees of its corporate clients to buy electric vehicles (EVs) at a discount.
Through its “salary sacrifice” scheme, Octopus Electric Vehicles helps drivers save up to 40% on new EVs by making payments from their pre-tax earnings, thereby reducing income tax and national insurance. The firm announced securing £550 million (about $699 million) from Lloyds Banking Group, raising its total funds to £1.2 billion for scheme expansion.
Octopus EV CEO Fiona Howarth expressed enthusiasm about partnering with Lloyds to accelerate the shift from traditional gas vehicles to eco-friendly options.
Octopus EV has already financed EVs worth over £450 million in Britain. It offers a comprehensive package that includes the vehicle, a charger, and a discounted energy tariff.
The company provides access to over 85 different vehicle models from 28 brands. It boasts over 4,000 corporate participants in its salary sacrifice scheme, including prominent names like Dyson, McLaren, and Innocent Drinks.
