Drive Electric the Smart Way: Why We’ At Grid Labs are All in on the Octopus EV Salary Sacrifice Scheme

Lets start by saying this: if you’re not looking into salary sacrifice for your next EV, you might be leaving thousands of pounds on the table—literally.

I’ve been deep-diving into the Octopus Electric Vehicles Salary Sacrifice Scheme, and what I’ve uncovered is a game-changer for both employees and employers. Whether you're a sustainability advocate, a company owner looking to offer real perks, or just EV-curious, here's everything you need to know.

How the Octopus EV Scheme Works

Octopus EV Scheme

At its core, this is a salary sacrifice lease model, similar to a cycle-to-work scheme. You sacrifice a portion of your gross salary in exchange for a brand-new electric vehicle (EV), and because the lease payment is taken from your pre-tax income, you pay less Income Tax and National Insurance.

What do you get in return? benefits includes:

• The EV lease

• Insurance

• Servicing and maintenance

• Breakdown cover

• Free home charger (Ohme ePod)

• Standard installation

• Optional public charging credits or home energy incentives

Real Savings for Employees and Employers

Let’s talk numbers. Here's where things get juicy:

For Employees:

• Save 30–60% compared to a regular lease, thanks to income tax and NIC reductions.

• £600 public charging credit or 4,000 free miles of home charging if you switch to Octopus Energy.

• Pay Benefit-in-Kind (BiK) tax at just 2% (frozen until April 2025).

Example: A £40,000 EV might cost just £300/month net, instead of £600+ on a personal lease.

For Employers:

• Save up to 13.8% in National Insurance Contributions per participating employee.

• Attract and retain talent with a sustainable, meaningful benefit.

• Zero setup cost and fully managed onboarding from Octopus.

Home Charger? Covered.

Yes, you’ll get a free Ohme ePod home charger with standard installation. If your setup is more complex (e.g., long cable runs), you may incur a small extra cost. Already have a compatible charger? You can opt out, though it won't reduce your monthly lease.

Energy Tariffs: Do I Have to Switch to Octopus Energy?

No, you don’t. But if you do switch, you get:

• Access to Intelligent Octopus Go, offering 6 hours of off-peak charging at around 7.5p/kWh.

• 4,000 miles of free home charging (Octopus will credit your energy bill).

Prefer to stay with your current supplier? You'll get £600 of Electroverse public charging credits instead—still a win.

Can I Transfer My Lease If I Change Jobs?

Yes! Through a process called novation, your lease can transfer to your new employer—if they’re willing to onboard with Octopus. Here are the conditions:

• Your current employer agrees to release the lease.

• Your new employer must enrol in the Octopus scheme.

• Typically, your lease must have run for at least 6 months.

If novation isn't possible, you might face an early termination fee (usually 50% of remaining payments). However, Octopus waives fees for major life events like:

• Redundancy

• Long-term illness

• Parental leave

• Loss of driving licence (medical)

• Death

What About Nearly New EVs?

Octopus also offers nearly new EVs with reduced pricing and shorter lease terms (from transfers or early terminations). These come with the same benefits and are ideal if you're looking for a shorter commitment.

How to Join

For Employees:

You can’t sign up directly—your employer must enrol first, Octopus Salary Sacrifice. Once they do, you’ll access your company’s Octopus EV portal to choose your car and begin the process.

For Employers:

There’s no cost to sign up, and Octopus handles everything. Just have a UK PAYE scheme and be ready to offer a great benefit to your team.

Referral Program: Earn While You Share

If you’re an affiliate like me, you can refer employers to Octopus and earn £100 for every EV delivered as a result. Just make sure:

• The employer signs up using your referral link.

• Their employees then lease EVs through the salary sacrifice scheme.

Even if you’re not a business, sharing your link can lead to real rewards once companies act on it.

Which EVs Are Available?

Pretty much everything you could want, including:

• Tesla Model 3 / Model Y

• Kia EV6

• Hyundai Ioniq 5

• Polestar 2

• Cupra Born

• MG4

• Volkswagen ID.3 / ID.4

• And many more...

All available in custom colours, trim levels, and configurations. Just pick and drive.

Lease Term Options

Choose from 2 to 4 years, depending on your needs and budget. Lower mileage and longer leases generally reduce your monthly cost.

Final Word

The Octopus EV salary sacrifice scheme is not just a way to get an electric car—it’s a smart, tax-efficient strategy to lower your carbon footprint and save serious money. At Grid Labs we are deeply embedded in the energy sector and we find this program aligns perfectly with the transition we're seeing across homes, businesses, and the grid.

Octopus EV Scheme

Whether you're an employer looking to empower your team or an employee wanting to drive greener for less, this is the future of company car schemes—and it's already here