The way it works is something like this (rough/
made up figures). You get a car allowance of say £500 per month, insurance, maintenance etc is covered & a list of cars to choose from. eg
Zoe - £300/month
e-Niro / ID3 - £400
M3LRAWD - £700
The first 2 would either mean wasted allowance or some companies may pay it to you (but taxed at 20-50% if NI/Social Insurance is included)
With salary sacrifice you might choose to pay an extra £200 of GROSS pay (
Tesla Stretch). This might equate to £100-150 of NET pay. The Employer also saves on Employer NI/Social costs (12%?). It really adds up in large organisations. Also, charging infrastructure for non-Teslas isn't great, so if you have
road warriors (sales, consultants, managers) who need to get places with little hassle, Tesla is the way to go, Good for
tech companies, sales egos as conversation starters, green etc
Edit: I didn't read the whole article before posting. Some other bits
NB: although it looks more expensive than above, it depends on whether PURE salary sacrifice or (as I had it in the old days) I had a salary and a separate car allowance on my payslip & contractual obligations that I had to provide a car that should be less than 4 years old, 4 doors, business use insurance and able/insured to carry colleagues/equipment in comfort. I think my car allowance was around £3,500/yr, others had £6,000 depending on legacy contracts. Later I think it was £5,000 per year (in another job).
"Octopus said many drivers are saving 30 to 40 per cent and some up to 60 per cent.
For example, for a 40 per cent tax rate payer opting for a Tesla Model 3, the typical net cost for an employee is £435 every month with the gross sacrifice from salary coming in at £726 per month.
This provides savings of £290 per month, inclusive of income tax and national insurance with just £14 in BiK tax and equates to savings of £13,920 over a four year period. Inclusive of this is insurance, servicing and maintenance"
and
"141 companies have signed up to salary sacrifice with Octopus, making it available to 22,298 employees.
Some 15 companies are already live on the scheme, including Huel and Purplebricks, making it available to 1,491 employees across the UK."
Octopus Electric Vehicles has revealed a new 100 per cent electric car leasing service for businesses looking to become more environmentally friendly.
www.thisismoney.co.uk