Electric Vehicle Scheme Policy

This page gives information about the policy between Loughborough University and Octopus, as well as outlining the steps in the process.

The University has partnered with Octopus EV to enable employees to lease an electric vehicle out of their pre-tax income. The scheme is offered through salary sacrifice which means monthly payments will be taken from your gross salary before Income Tax and National Insurance deductions, therefore reducing the amount of tax and NI you pay. 

There are so many benefits to driving electric, for you and for the environment. As well as being cheaper to run you can also do your bit to reduce your carbon footprint. Electric car salary sacrifice packages can vary, but our salary sacrifice package gives you everything you need to hit the road.

  • Fully comprehensive motor insurance  
  • Servicing and maintenance, including all servicing, batteries, exhausts and tyres 
  • Breakdown cover 
  • Home Charge point and/or Charging credit 

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. 

The salary threshold for brand new EV’s sits at around £28k and this in some case can reduce to £25K (spinal point 16 and above) for used EV’s depending on what used car stock is available at the time. 

Through this scheme, employees can benefit from:

  • Reduced Income Tax and National Insurance contributions 
  • Fully comprehensive motor insurance  
  • Servicing and maintenance, including all servicing, batteries, exhausts and tyres 
  • Breakdown cover 
  • Home Charge point and/or Charging credit 
  • Road tax included 
  • Access to Octopus EV's support services

The standard agreement terms have been carefully structured to provide clarity and flexibility for participants in the scheme. These terms include: 

  • Lease duration options that suit different needs: Choose between 24 months (2 years), 36 months (3 years), or 48 months (4 years) commitment periods 
  • Monthly payments are conveniently and automatically deducted directly from gross salary, ensuring a seamless payment process and tax advantages 
  • Early termination provisions are available in specific circumstances, providing flexibility should your situation change during the agreement period 
  • Annual mileage limits are established at the start of the agreement to maintain vehicle value and ensure fair usage

Employees 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 
  • Subject to availability based on current market conditions and manufacturer production schedules 
  • Come with comprehensive manufacturer's warranty coverage for peace of mind

OEV - Octopus Electric Vehicle

1 - Quoting Obtain quotes directly from OEV and select your amazing new car and associated term and mileage. Please note that OEV only accounts for the impact of your marginal rate of income tax, your National Insurance Contributions and benefit in kind when calculating the Net Cost to You in their Driver Agreement.
2 - Quoting Sign a Driver Agreement and Driver Handbook, which will include a number of terms and conditions that you should read through carefully to ensure that you are happy with them. 
3 - Quoting LU HR/Payroll will confirm that you meet the eligibility criteria and that by taking a salary sacrifice car your salary will not fall below the National Minimum Wage or Lower Earnings Limit.  
4 - Ordering LU HR/Payroll will authorise your order with OEV. 
5 - Ordering OEV will place the order with their preferred dealership and confirm all of this for you when it’s done. Once the order has been authorised you will have committed yourself to the Scheme and you may be liable for any cancellation charge from this point if you change your mind.  
6 - Ordering The dealership will contact you directly to confirm the specification of your car, including make, model, trim, colour and option extras. Your car will not be ordered without this step, so please let OEV know if you don’t hear from the dealership - this should happen within 7-10 days of OEV placing the order.  
7 - Delivery OEV will keep you updated on the estimated delivery of the car. Car supply is subject to manufacturer order lead-times and OEV will give you an estimate of the likely lead-time when the dealership finalises your order. The dealership will deliver from stock where they can, but most EVs are delivered subject to factory order. They will keep you updated if there is a significant change to the estimated lead time on your car.  
8 - Delivery When your car comes into stock, you’ll hear from OEV or the dealership to organise delivery or collection of your vehicle at a convenient time.  
9 - Collection Enjoy and look after your car! OEV are on hand both before and after delivery of your car should you have any questions or need any help.  
10 - Renewal Once your car reaches the last 6 months of the contract term, OEV will contact you to talk about ordering a new car on the Scheme and to organise the return of your current car. 

 

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

We recognise that circumstances change and therefore you may not be asked to pay a charge (at our absolute discretion) on Early Termination for the following reasons: 

  • Resignation
  • Redundancy, including voluntary redundancy 
  • Unpaid extended parental leave, except for any statutorily entitled pay 
  • Unpaid Long-Term sickness leave lasting 4 weeks or more, 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

Upon reaching the conclusion of your agreement period, the following procedures and considerations apply:

  • The leased vehicle must be returned in good condition, meeting industry-standard fair wear and tear guidelines. This includes ensuring the vehicle is clean, mechanically sound, and free from significant damage or modifications. 
  • A thorough assessment of mileage will be conducted, and charges may be applicable if you have exceeded the pre-agreed mileage limits specified in your contract. These charges will be calculated based on the excess mileage rate outlined in your agreement.
  • You will have 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.

 

This policy will undergo a comprehensive review on an annual basis to ensure it remains current and effective. Additionally, reviews will be conducted whenever there are meaningful modifications to relevant legislation that impacts the salary sacrifice scheme, changes to university procedures that affect policy implementation, or other significant developments that warrant policy updates. This regular review process helps maintain the policy's alignment with both regulatory requirements and institutional objectives. 

Note: This policy is subject to change. The university reserves the right to amend or withdraw the scheme at any time