Electric Vehicle leasing

scheme introduction
Points covered

• Why is this important?

• What is the leasing scheme?
• What are the employee benefits?
• What is the scheme process?
• What are the next steps?
Why is this important?
Preserving this planet for its inhabitants

The nine countries – Brazil, China, Germany,

India, Indonesia, Nigeria, South Africa, the UK
and the US – represent more than 70% of global
emissions and 50% of the global population.
Across these countries, meeting the Paris
Agreement obligations could result in an annual
reduction of 1.18 million deaths due to air
pollution, 5.86 million deaths due to diet-related
risk factors, and 1.15 million deaths due to
physical inactivity by 20401.

This species of chameleon was recently found

in Madagascar. The smallest lizard ever found;
21.6mm long 👀
Extreme weather events Geographical spread of
diseases

Breakdown of food and Hundreds of millions

water systems driven to migration
The latest environment news is brutal
• One in five deaths in the world are caused by
air pollution as a result of burning fossil fuels1
• We need to reduce emissions by 8% every
year until 2050 to meet the Paris Agreement
targets. The Covid-19 lockdowns have
reduced emissions by only that amount2
• 2020 was tied with 2016 as the hottest year on
record3 and the last decade was the hottest
since records began4
• Ocean temperatures have reached record highs
and are heating faster than anytime in the last
2,000 years5
• These increases in temperature result in record
numbers, and intensity, of storms6 7 and record
wildfires8 9
• Plastic production is set to increase by 40% by
203010
• COP25 ended without agreement on the
global carbon market11
Business changes
• $14.5tn in investments have been diverted
away from fossil fuels1
• A group of 11 pension and investment funds
managing more than £130bn have filed a
resolution for Barclays and HSBC to divest
from fossil fuels2
• The Bank of England is consulting on a
proposal to stress test banks on their response
to climate scenarios3
• Google have pledge to carbon free by 20304
• Microsoft have pledged $1bn to be carbon
negative by 20305
• 273 multinational companies named on the
CDP A-list for their climate impact aims6
• 310 (74%) of UK local authorities have
declared a climate emergency7
• 7.6 million people took to the streets during
the September 2019 climate strikes8
Sustainable futures for the planet:

We will be a force for good for the planet by decoupling our economic
growth from the degradation we cause to the planet.
One of the multiple ways we will do this is by removing barriers for
employees to reduce their personal carbon footprints. Joining this electric
vehicle scheme helps to remove one of those barriers.
What is the leasing
scheme?
Scheme introduction

• This is a salary sacrifice (before tax and national insurance) electric vehicle leasing scheme
• Employees will lease their chosen electric vehicle on the OctopusEV scheme via their company
• The vehicle is for personal use, it doesn’t have to be used as a traditional company car
• The salary sacrifice has a very low benefit in kind rate (for comparison, combustion engine vehicles
have a 30% rate):

Benefit in kind % rate FY21/22 Benefit in kind % rate FY22/23 - FY24/25

1% 2%
Scheme entry

• The Panoply Group has been credit checked and we as a group of companies will enter into one master
hire agreement, with each UK company as a subsidiary
• Octopus EV will take care of the following as part of the scheme:
– Setup assistance, including key approvals processes and employee documents
– Manage quotes, orders and collections / deliveries
– Provide payroll reporting and taxation
– Lunch and learn style presentation and Q&A to launch the scheme once we’ve signed up; along
with a complete marketing pack and an EV expert to help promote the scheme
Early termination

• Leaver protection is built in to reduce the risk to each company

• Each year a company is allowed to return 10 cars or 10% of the total fleet (whatever is greater)
• After that, early termination fees of 50% of remaining rentals due
• As the Group grows it is likely that we will breach the allowable termination ceiling and as such there
may well be termination fees. In order to protect the group from early termination fees we will be
asking employees to provide an indemnity to cover early termination costs should they cause them. We
will put this in place only when a certain amount of people have signed up
• Parental leave friendly arrangements are also available so as to not penalise those on parental leave
What are the employee
benefits?
What’s included?

• Maintenance, servicing and MOT costs

• 24/7 accident and breakdown call centre
• Breakdown assistance/recovery and relief vehicle
• One additional driver; partner or spouse living at the same address What do you spend on all of
these things added together
• Fully comprehensive insurance
at the moment?
• Replacement tyres
• Road tax
• Early termination protection (e.g. resignation, redundancy)
• Credit checks are at a company level (already done), not individual
Possible extras

• Access to an electric vehicle specialist Octopus energy tariff to get £100

worth of free overnight charging, equating to around 8,000 miles of
What do you spend on petrol
driving. After that, filling up the vehicle costs a tenth of what it costs to per month?
fill up a traditional vehicle

• Get a charge point installed from £545 (

this includes the government grant)
A worked example

• Based on a higher rate tax payer (40%) the below shows an example of a mid sized vehicle at £474 per month.

Before scheme Reduction In scheme

Annual gross salary £60,000 -£5,688 £54,312

Monthly gross salary £5,000 -£474 £4,526

Monthly net salary £3,136.67 -£289 £2,847.67

Monthly net salary after £3,136.67 -£9.54 £2,838.13

benefit in kind
• The net cost is lower because you’re not paying tax on the gross monthly cost. However, because of the salary
reduction, that is now your effective salary which needs to be used when applying for a mortgage or other
financial products
• The Panoply finance team will run through affordability scenarios with people if needed
What is the scheme
process?
 No company involvement

Scheme process diagram Company involvement

Scheme launch Employee visits the Employee contacts Employee signs driver’s OctopusEV contact
webinar OctopusEV portal to look OctopusEV to get a handbook company sign off person
in more detail at available personalised quote with the hire schedule and
16th April cars; gets an indicative details of the quote
quote

Post delivery invoices are sent
the month after delivery and for
the duration of the lease. These
will be consolidated if the
company has multiple leases
Vehicle is Order is placed Company confirms they are Company checks salary details,
delivered happy to lease, and then sub- minimum wage criteria,
lease, vehicle; thus authorising performance review and future
2-6 months after the order of the car employment plans
order

🌍
Invoices are paid, salary is reduced and Any issues with the car are dealt
asset is accounted for on balance sheet with between the employee and
OctopusEV
What are the next steps?
Next steps

• Feel free to read any the documentation provided; driver’s handbook, employer letter and master hire agreement

• Each company has already signed a DD mandate and The Panoply have signed the master hire agreement

• Each company need to decide who signs off on whether an employee can join the scheme; this is likely to be one of the
board because factors such as salary, membership of other salary sacrifice schemes, performance review and future
employment plans will all be factors in this decision

• The company also needs to decide who will receive the monthly reporting and invoices

• Until someone in your company signs up, we don’t need anything else. Once someone is signed up, there will be some
accounting administration related to the lease as an asset which Luke Hillier and Diana Hau will help with
thank you