Electric Vehicle Scheme FAQs

No. For an employee to be able to take out an electric car salary sacrifice lease, there are a few requirements: 

• Must be a permanent employee. 
• Must be earning above minimum wage (after the salary sacrifice deduction has been made). 
• Having successfully completed probationary period. 
• Mustn’t have any at-fault claims or Category A convictions within the past 3 years. 
• Mustn’t have more than 6 points on their licence. 
• Staff employed by Imago or LSU are not eligible.

There are two options for staff to choose from when selecting vehicles:

a. Brand New EV: The salary threshold for brand new EV's sits at around £28K (spinal point 19 and above)

b. Nearly New EV: The salary threshold for nearly new EVs can reduce to £25K (spinal point 14 and above) for used EV's depending on what used car stock is available at the time. 

The Nearly New range is increasing all the time as first generation leases are coming to an end. This means the range and availability of these vehicles will bring the prices down in the future making the scheme accessible to more colleagues.

Unfortunately, staff that sit below those thresholds will not be able to participate in the scheme as their post sacrifice hourly rate would fall below National Living Wage. 

No, staff at LSU and Imago are not able to use the scheme.

You will only be able to participate in the scheme if your visa covers the entire duration of the lease. This is a strict requirement of the Octopus EV Insurance underwriters.

No. Supplementary payments (market, retention, recruitment or the Lboro RLW supplement) will not be included in the eligibility calculation as these are not contractual payments and are subject to review. 

You don't pay anything until you've received delivery of your car. 

If your car is delivered before the main payroll deadline date for that month, then your first salary deduction will occur that month. Otherwise, your salary deductions will start on the following pay date. 

Payday falls on the last working day of every month.

Where a salary sacrifice arrangement is used, your gross pay is affected, which in turn impacts upon your tax and National Insurance Contributions (NIC). As entitlement to some benefits is based on the amount of NICs that are paid and others on earnings, entering into a salary sacrifice arrangement may affect your current or future entitlement to a range of benefits. 

This depends on the pension scheme that you a member of. 

USS will accept pension contributions based on 'notional salary' i.e. your salary before any sacrifice is made and therefore the benefits of those in these schemes will not be affected. 

The LGPS does not allow purchase of vehicles to be pensionable. This means that your pension contributions will be taken from your reduced salary for the duration of the salary sacrifice arrangements and that means your pension banding might change during this time too. 

The standard lease durations have been carefully structured to provide clarity and flexibility for participants in the scheme. There are lease duration options that suit different needs, and you choose between 24 months (2 years), 36 months (3 years), or 48 months (4 years) commitment periods. 

Please note that the monthly costs vary depending on the length of contract selected. 

Through this scheme, employees can benefit from:

• Fully comprehensive motor insurance
• Servicing and maintenance, including all servicing, batteries, exhausts and tyres
• Breakdown cover
• Home Charge point and / or up to £4000 worth of Charging credit
• Road tax included
• Access to Octopus EV's support services

No. However, you will the opportunity to continue participating in the scheme by entering into a new agreement for another electric vehicle, subject to meeting the eligibility criteria and current scheme terms. 

Employees will have access to an extensive and diverse selection of electric vehicles available through Octopus EV's comprehensive platform. The platform offers a carefully curated range of vehicles to suit different preferences, budgets and driving needs. All vehicles in the program are:

• New and fully electric vehicles direct from manufacturers, featuring the latest technology and specifications.
• Nearly new vehicles from the used market, thoroughly inspected and certified for quality assurance.

The models on the platform will be subject to availability based on current market conditions and manufacturer production schedules.

We recognise that circumstances change and therefore you may not be asked to pay a charge of Early Termination for the following reasons:

• Resignation
• Redundancy, including voluntary redundance
• Unpaid extended parental leave, except for any statutorily entitled pay
• Accidental death that was not the result of self-inflicted injury, alcohol, solvent or drug abuse
• Loss of driving licence on medical grounds, for 6 months or more.

If you are not covered under early termination, you will receive an early termination charge equating to 50% of the due finance rentals. This will be discussed and payments terms agreed as part of the early exit.

To get a quote and see the range of cars available simply visit Octopus EV or Octopus EV Nearly New. 

Once you've submitted a request for a car through the portal, a notification will be sent to HR and Payroll to review the request and approve.

Depending on the car you choose delivery could be within a number of weeks. As soon as your new car arrives at the supplying dealer, they're register the car and contact you to arrange delivery. 

Participants in the Electric Vehicle Salary Sacrifice Scheme must fulfil the following essential responsibilities throughout the duration of their agreement:

• An up to date driving licence at all times, ensuring compliance with legal requirements.
• Report any accidents, incidents or damage to the vehicle promptly through the appropriate channels, including both the insurance provider and Octopus EV Support team.
• Adhere to the manufacturer's recommended servicing schedule and maintenance requirements to ensure optimal vehicle performance and warranty validity.
• Maintain the vehicle in good condition through regular cleaning, appropriate storage, and responsible usage practices that preserve its value.
• Carefully monitor and stay within the agreed annual mileage limits specified in the lease agreement to avoid additional charges.