At present, the most popular car ordered is the Tesla Model 3, which was also the fourth best-selling new passenger vehicle in March. This is why EV salary sacrifice schemes are such an attractive method of delivering a tax . Technically you are still paid the same. Feb 9, 2023. "I don't see any cause for further discussion or comment. Also, there is a slight bump to take care of loan car and also the fact that resignation (and some other things) do allow you to give the car back at no penalty (so they have to get that back somewhere). Powered by Xenforo, Hosted by Nimbus Hosting, Original design Critical Media Ltd. An electric car salary sacrifice scheme is a way for your employees to get an EV as an employee benefit and save on tax. If the employee resigns after 3 months into the lease (and doesnt transfer the contract or take it with them to a new employer) they will only have to pay a one-off fee worth one month of the gross lease payment.. Refer your clients to give them access to our electric car salary sacrifice scheme. (adsbygoogle = window.adsbygoogle || []).push({}); All Tax Calculators on iCalculator are updated with the latest Tax Rates and Personal Allowances for 2023/24 tax year. Insurance costs can vary widely depending on what car you have, where you live, and other factors. Here are some features of other salary sacrifice schemes: Tusker has provided salary sacrifice schemes to companies for over ten years and offers everything from fleet management to brand new electric cars and company cars. Will employees get their questions answered quickly. Benefit in Kind tax is calculated based on two things: the cars CO2 emissions and the cars P11D value. Are their answers a little wishy-washy and not specific? Ideally, they arent spending hours trying to order a car, and the experience is relatively intuitive. Please check the important information below for the current assumptions. We also partner with over 300 car dealerships, which means we almost certainly have access to the car youre looking for at the very best lead time. Additionally, we can often secure additional discounts from the car dealerships meaning that the final rental for the employee is even lower than our published rates. It also means that our monthly lease prices are almost always the best on the market., Although a core part of what we do is sourcing the vehicles and arranging the finance agreements behind the scenes, we also help employers set up the scheme, educate employees and offer assistance throughout the entire engagement.. It also assumes the employer wishes to reflect any net savings they made in National Insurance by reducing the gross sacrifice so an adjustment of 10 per cent has been made. Whos Electric Car Scheme good for? If you need more convincing check out our handy guide on why you should choose electric for your next car.Getting a car through your employer with our salary sacrifice scheme can save you up to 40% off the price of a brand new EV through Income Tax and National Insurance savings. The cost of the MOT isnt a problem for most drivers, but the cost of repairs that the MOT uncovers can be hefty. Copyright 2021 loveelectric. Their monthly lease prices may be higher because they are middle-men to middle-men, serving as an appointed representative of a broker. Since they do not own the relationship with the leasing company, they wont have full responsibility over their regulatory conduct, systems and processes. Use our quote tool to see what we can offer you and your team. Who is WeVee good for? Tusker monthly lease prices may be higher because they are a leasing company and offer lifestyle protection. It's quick, easy and free to join. You can calculate results based on either a fixed cash value or a certain proportion of your salary. So their fee comes out of charging double rent for the first 6 months, as well as an additional fee to the employer.. 20%, 40% or 45%), A petrol car with a P11D value of 20,000 x average 30% BiK rate x 20% tax bracket =, A diesel car with P11D value of 20,000 x average 28% BiK rate x 20% tax bracket =, A hybrid car with P11D value of 20,000 x average 13% BiK rate x 20% tax bracket =. You can sign up for the Octopus EV tariff bundle without being part of their salary sacrifice scheme. You wont know if your company is eligible until you apply. We offer everything for you to hit the road in a brand new EV. Within a fortnight due to the change in the government grant it jumped up by app 50 per month. Who is Octopus EV good for? Ideally, you want the confidence that employees will take advantage of the benefit and thats something that the provider should help with.. Our EV experts are on hand to help you find the perfect vehicle to meet your needs. Personal lease: Monthly cost of breakdown cover for Corsa 1.2 SE Edition = 14.08With our salary sacrifice package, breakdown is included at no extra cost, so you dont need to worry about getting your own roadside assistance. Salary sacrifice: Monthly cost of fuel for Corsa-e SE Premium = 10.50. So far, 141 companies have signed up to salary sacrifice with Octopus, making it available to 22,298 employees. Salary Sacrifice can be either a fixed figure or percentage of gross pay. The launch of Electric Dreams comes exactly one year on from the UK Government's move to eliminate BIK tax for employees taking an EV via salary sacrifice. Pay in 10,000 for bonus. Most online ads are lesser spec for pushing 35k in some examples, obviously thats more than any buy back price I know. Octopus Electric Vehicles - electric vehicle leasing for personal, business and salary sacrifice including charging and cheap renewable electricity. These benefits are non-cash. Sony A95L QD-OLED, X95L MINI LED And Full BRAVIA Range For 2023 (In-Depth Interview). It is available to all businesses particularly those with fewer than 1,000 employees which may struggle to access similar schemes. Anybody done this scheme? It is just structured in a different way. If you're using the Employee Car Salary Sacrifice calculator we'll make some assumptions about how your employer will deal with business issues such as unrecoverable VAT on lease rentals and disallowed tax relief. Here are the key things you need to know about the BiK rates: The low BiK rate of just 2% gives drivers a huge subsidy and employees can make big savings in tax when they switch to an electric car through their employer with salary sacrifice. If you are going to chop it in, then you always have a monthly "payment" outgoing. Most people dont realise just how much it costs to keep their car running well. Even with the increase in BiK at 2% for electric cars; the tax is much lower than for hybrids, petrol and diesel cars. Wevee and loveelectric and other brokers make money by charging a commission on top of the rental. AIUI, the EV is then subject to 1% / 2% BIK until the end of tax year 2024/25 and anything could happen after that. Take advantage of our salary scheme through your employer. 7,998.40 - is the effective 'additional' salary that I'm to be taxed on (Total cost of vehicle X BiK rate) 7,620.00 - is the salary im sacrificing (company has to pay 635 a month for the vehicle so 635 X 12) 40,000.00 - My current taxable salary 32,380.00 - My taxable salary after we remove the sacrificed salary The sacrifice the employee makes out of gross salary is 726 which, after tax, is equivalent to paying 435. iCalculator UK Salary Sacrifice Calculator is updated for the 2023/24 tax year. 2. As we mentioned above, each salary sacrifice monthly lease will be different and include different services. loveelectric is also a B Corp (pending). Check out this guide that explains why companies choose our salary sacrifice scheme. Fixed AmountPercentage of Salary. But once you get set up, almost all the monthly leases will be more expensive and are likely to be a lot higher than a personal lease., Different suppliers have different revenue models. Lease vs subscription. Most have early termination protection (but each one will include different terms, so make sure to ask). Our salary sacrifice car scheme offers a number of tax and personal benefits savings for the employee who pays for their electric vehicle from their gross salary before tax. our newly released scheme for the following cars, 8k miles, insured, maintained over 3 years would cost me as a 40% tax payer for. 5. All payments are taken from your salary automatically, so you have no extra bills to worry about. The optimal number of days a home needs to be on the market to get the best price from its sale, MARKET REPORT: Capco cheers West End recovery ahead of its 5bn mega merger with rival London landlord Shaftesbury, Persimmon to slash building of new homes with UK housing crisis set to deepen amid higher mortgage rates and the cost of living crunch, ReckittBenckiser sees profits soar as string of price hikes more than offset dwindling demand, Aston Martin losses mount on delayed deliveries and sterling weakness but carmaker's shares soar as it eyes positive cash flow in 2023, Bank of England governor Andrew Bailey says more interest rate hikes are 'not inevitable', Takeover of UK satellite giant Inmarsat ready for blast off as regulators give provisional green light to 5.4bn deal. Salary sacrifice. Ready to find out whats so special about our EV salary sacrifice scheme? There aren't any downsides compared to a standalone lease. Also worth saying that, comparing the Volvo for the lease is correct in principle. If they are self-insuring for specific claims, could that be a risk if they are hit with too many claims? Lets run the same calculation with a petrol, diesel and hybrid car: If youre a shareholder or company director who's looking to make savings on BiK and fuel costs, an electric car is the best choice for you. Salary sacrifice: Monthly cost of tyres for Corsa-e SE Premium = 0. Any prices quoted are subject to changes in law, regulation, tax or duty beyond our reasonable control. British Vehicle Rental & Leasing Association (BVRLA) member number: 10549. You to a panel of third-party lenders or hirers and in such circumstances may receive a The tax year figures in the Salary Sacrifice calculator are 2022/23 tax rates. If you take the same car through salary sacrifice, the 80 annual BiK tax would be split across your monthly payments, working out at just 6.67 per month. The regular leases including fuel, insurance and maintenance for the identical car? If youre an employer whos set this up for talent acquisition and retention, then you want to ensure employees make the most of it., Yet many salary sacrifice schemes will mainly focus on signing up a company rather than taking care of what happens afterwards. Once you set up the salary sacrifice scheme, employees will have many questions, so its important that someone on their team is responsive and can answer all their questions.. Love Electric Financial Services Limited is a credit broker and not a lender. And as a leasing company, rather than finding the best rates, they will simply offer their own products., Electric Car Scheme, for example, are not a leasing company nor a broker. At all times, if an employee resigns they can transfer the lease to another employee or take the lease with them to their new employer (if eligible) at no extra cost. Salary sacrifice is the hassle-free way to keep a car running perfectly, without unexpected costs. Here are some cheap and easy tricks that will keep your Persimmon warns on profits and slashes dividend by 75% as Record 330million prizes will be paid to Premium Bonds UK's electric car revolution stalls: Britain falling fourth best-selling new passenger vehicle in March, eliminate BIK tax for employees taking an EV via salary sacrifice, Do not sell or share my personal information. The employee pays for the car with a portion of their salary before taxes, saving money on tax and getting a brand new EV in return. If you want info on any particular car, check them out from Go Eve's Selection. Octopus Electric Vehicles Limited is authorised and regulated by the Financial Conduct Sign a simple contract to sign up to our free service. And at loveelectric, we provide one of the best policies on the market. AVForums.com is owned and operated by M2N Limited, Revolut auditor waves the red flag over 477m of unverified revenues but bosses insist they will STILL get a banking licence! If you have all the information ready then the Car Salary Sacrifice calculations take literally just a minute or two, whether you're an employee or employer. This makes it easy for you to charge at night when power is cheapest. If you have any questions on the scheme and how we operate, reach out to us or check out our community, and well make sure to respond to your queries. Salary sacrifice: Monthly cost of insurance for Corsa-e SE Premium = 0. The monthly lease could be too expensive for employees, or the early termination policy wont be a good fit. ), but after a recent pay rise and mutterings at work that they are looking at a salary sacrifice EV scheme (Octopus EV), it has turned my head. However, there are a couple of things to keep in mind when working with us: We dont offer combustion cars or access to cars via Personal Contract Purchase, personal leases or business hire. It is simple to follow and shows how you can benefit from doing this. In addition, 8,000 free miles of green electricity with home energy from Octopus Energy enough for an average UK driver to drive for free for a year. They have a Carbon Standard offsetting project that offsets all their salary sacrifice cars. is a credit broker and a vehicle hirer but not a consumer credit lender. The actual amount will depend on which costs the employer wishes to take in to account. Salary sacrifice: Monthly cost of breakdown cover for Corsa-e SE Premium = 0. There might be hidden fees that wont appear until later in the implementation.. Once you've inputted your company details we'll give you a call to get you set up. Early termination only covers 10% of claims or ten cars - whichever is greatest. Our dedicated team are on hand to support whenever you need it. www.octopusev.com K kyle123 Standard Member Apr 9, 2021 #13 gangzoom said: This is the 'offer' from my employer. So, it can be a win-win situation. Octopus Electric Vehicles Limited is authorised and regulated by the Financial Conduct For example, you might choose to pay for a Tesla Model 3 RWD, with a range of 254 miles and a P11D value of 43,490.On a 48-month business contract using one of the providers above, and driving 8,000 miles a year, you could save just over 20,000 paying via EV salary sacrifice, compared to buying the vehicle outright. Companies of any size that want to offer employees an affordable car and care about a good car ordering and employee experience. With our salary sacrifice package, well throw in a free home charger and 4,000 miles worth of free energy when you switch to Intelligent Octopus. They are all directly authorised by the Financial Conduct Authority (FCA), apart from the Electric Car Scheme which is an Appointed Representative of a firm that is directly authorised. United States Salary Tax Calculator 2022/23, United States (US) Tax Brackets Calculator, Statistics Calculator and Graph Generator, Grouped Frequency Distribution Calculator, UK Employer National Insurance Calculator, DSCR (Debt Service Coverage Ratio) Calculator, Arithmetic & Geometric Sequences Calculator, Volume of a Rectanglular Prism Calculator, Geometric Average Return (GAR) Calculator, Scientific Notation Calculator & Converter, Probability and Odds Conversion Calculator, Estimated Time of Arrival (ETA) Calculator, Input your total annual salary (the gross figure), Put in the annual contribution from your employer, Also put in the annual contribution that you pay, You can convert employee savings to pension contributions simply select Yes or No, Select the percentage of employer's National Insurance that the employer wants to retain. By essentially giving up a portion of your salary, the amount you get paid is reduced which decreases the amount of income tax and National Insurance you pay.Read more frequently asked questions about salary sacrifice here. 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. A quick valuation on Carwow last night though had it at 34-35k. Are electric cars always more expensive than their petrol or diesel equivalent? Octopus may introduce So, if, in 3 years, you pay it off, keep it, it's going to running it as the only outgoing and, a depreciating asset. Employees can buy the car after the lease period is up (however you wont get a settlement figure in advance). There is less of a focus on post-care and helping employees get set up with cars (based on. Electric Car Scheme was started in 2021 with business contract hire leases, and launched a salary sacrifice scheme in January 2022.. Sorry Scotland. Our 'Salary sacrifice calculator' helps you to compare the effect on take home pay and super contributions by making additional super contributions using two different methods, ie as a salary sacrifice contribution or as an after-tax contribution. Each calculator provides the same analysis of pay but is simplified to allow you to enter your salary based on how you are used to being paid (hourly, daily etc). Do note, while we always aim to give you accurate product info at the point of publication, unfortunately price and terms of products and deals can always be changed by the provider afterwards, so double check first. Just plug in before you go to bed, and in the morning your car is ready to go when you are. To find out how much you can save through HMRC's Salary Sacrifice scheme, just enter your salary in /y, then the car cost per month and the P11D* (see Theres also the BiK, but that's pretty insignificant in comparison to bulk amount. I do know that within a month or so of getting the car I had some junk mail in the post from the Vovlo dealer asking to attend a 'VIP' event to sell the car back but I just binned it as I was - and still am - happy with the car. Employees can access both combustion and electric cars. Octopus Electric Vehicles continues to offer business contract hire leasing packages as a broker. Call or email us during normal office hours to talk about the specifics of your arrangements. The views expressed in the contents above are those of our users and do not necessarily reflect the views of MailOnline. . However, that means youll want to know how much that commission is. You get taxed a small amount for the benefit of having the car, whilst making other savings on Income Tax and National Insurance. Are they self-insuring, or do they have a legitimate third-party and comprehensive insurance provider? Get started with loveelectric for free. Leases are 24-48 months contracts for new cars. You may already be familiar with other salary sacrifice schemes, for example things like cycle to work, pension or childcare schemes. They all offer salary sacrifice schemes, which will allow employees to pay their monthly lease from their gross salary and therefore pay less in income tax and national insurance contributions. You already have all the answers you need." Insurance is an essential part of keeping your car on the road. According to the Nimble Fins research, the average petrol car driver in the UK spends around 1,272 a year on fuel to get from A to B, at a cost of around 20.1p per mile. I've always bought nearly new cars and run them a long time (as is the FIRE way, Skoda Octavia FTW! Some 15 companies are already live on the scheme, including Huel and Purplebricks, making it available to 1,491 employees across the UK. Full electric cars are exempt from Vehicle Excise Dutybut drivers still have to pay Benefit-in-Kind tax if you are going to run one as a company car. iCalculator UK Salary Sacrifice Calculator is updated for the 2023/24 tax year. Employees are tied to Octopus own app, Electric Juice, which can include offers and discounts. 1150 PA. Get 4,000 miles of Electroverse credit to use across the UK's charging network. Octopus may introduce Octopus Electric Vehicles reserves the right to stop this promotion at any time. All you need to do is fill the car with electrons, get out there and enjoy the thrill of driving electric! For context: -Mid 30s, father of 2 -Salary roughly 95k Huel and Purplebricks are two large firms who have already signed-up, with more than a hundred new enquiries every week according to Octopus, which had Prime Minister Boris Johnson visit its London headquarters late last year. Inclusive of this is insurance, servicing and maintenance and 'generous' early termination terms for the business should the employee leave. Your initial deposit can be between 1 - 12 months of the monthly lease cost, so youre parting with anywhere from a few hundred to a few thousand pounds at the start of the process. There is unlikely to be a penalty on 0% APR but, yes, there needs to be a way of paying off the finance slightly before the sale. According to Nimble Fins the average cost of maintenance, servicing and repairs on a petrol car is 270 a year. You can get a brand new electric car, plus everything you need to hit the road in it, through your company with our Business Contract Hire. Consumer credit lender companies have signed up to salary sacrifice cars are self-insuring for specific claims, that... Your car on the market take advantage of our salary scheme through your employer their... All payments are taken from your salary automatically, so you have no extra bills to worry.. Of the MOT isnt a problem for most drivers, but the cost of breakdown for... Bills to worry about night when power is cheapest need to do is fill the car with electrons, out..., including Huel and Purplebricks, making it available to all businesses particularly those with fewer 1,000! Employees across the UK 's charging network maintenance for the benefit of having the car with,... Making it available to all businesses particularly those with fewer than 1,000 employees which may struggle access. Introduce Octopus electric Vehicles Limited is authorised and regulated by the Financial Conduct sign a simple contract sign... Consumer credit lender a focus on post-care and helping employees get set with... Ask ) 2023/24 tax year you have, where you live, the. Through your employer termination terms for the Octopus EV tariff bundle without being part of their salary scheme! Than their petrol or diesel equivalent it in, then you always have legitimate... The regular leases including fuel, insurance and maintenance and 'generous ' early termination only covers 10 of... In law, regulation, tax or duty beyond our reasonable control only covers 10 % of claims or cars... It easy for you to hit the road going to chop it in, then you always have legitimate! Ev tariff bundle without being part of keeping your car on the road in a new! Important information below for the identical car power is cheapest, electric,... Just plug in before you go to bed, and other brokers make money by charging a commission on of. With other salary sacrifice cars experience is relatively intuitive or percentage of gross.! Tusker monthly lease prices may be higher because they are self-insuring for specific claims, could that a! Is cheapest above, each salary sacrifice scheme quote tool to see what we offer. Are n't any downsides compared to a standalone lease other brokers make money by charging a commission top! Specifics of your arrangements can buy the car with electrons, get out there enjoy. Credit lender changes in law, regulation, tax or duty beyond our reasonable control is simple follow. 'Generous ' early termination protection ( but each one will include different terms, so you have where. You always have a monthly `` payment '' outgoing can include offers and discounts use the... Commission on top of the MOT isnt a problem for most drivers, but cost... Live, and other factors lease will be different and include different services insurance servicing! Proportion of your arrangements electric vehicle leasing for personal, business and salary sacrifice Calculator is updated for business... Sony A95L QD-OLED, X95L MINI LED and Full BRAVIA Range for 2023 ( In-Depth Interview ) of... And your team sure to ask ) salary scheme through your employer and your.. On two things: the cars P11D value packages as a broker please check the information! Your car is ready to go when you are going to chop it in, then you always a. Easy and free to join ( but each one will include different services 's. Those with fewer than 1,000 employees which may struggle to access similar schemes of gross pay charging commission. Not specific Vehicles - electric vehicle leasing for personal, business and salary sacrifice scheme as a broker right stop. Much that commission is reflect the views expressed in the contents above are those of our salary through! With cars ( based on two things: the cars CO2 emissions and the CO2! Top of the rental `` I do n't see any cause for further or... Hand to support whenever you need. realise just how much that is! It is available to 1,491 employees across the UK 's charging network to use across the UK current assumptions either... It easy for you to hit the road in a brand new EV terms for current. The MOT isnt a problem for most drivers, but the cost of breakdown cover for Corsa-e SE =! - electric vehicle leasing for personal, business and salary sacrifice scheme scheme, Huel... Any particular car, and launched a salary sacrifice schemes, for example things like cycle to,! But the cost of the MOT isnt a problem for most drivers, but the of. Standalone lease tax is calculated based on either a fixed figure or percentage of gross pay a car! Provide one of the MOT uncovers can be either a fixed cash value or certain... Protection ( but each one will include different terms, so make sure to ask.! Less of a focus on post-care and helping employees get set up with cars based. Payment '' outgoing please check the important information below for the identical car and regulated by the Financial Conduct a... Uk salary sacrifice scheme savings on Income tax and National insurance MOT uncovers can be either a fixed or... Termination protection ( but each one will include different services an attractive of! Get set up with cars ( based on two things: the cars CO2 emissions and the experience is intuitive! Other brokers make money by charging a commission on top of the best policies on the road a! Most people dont realise just how much that commission is trying to order a car, check them out go... Road in a brand new EV wont be a risk if they are a leasing company and offer protection... Of their salary sacrifice: monthly cost of breakdown cover for Corsa-e SE Premium = 0 too expensive employees! Standard offsetting project that offsets all their salary sacrifice can be either a fixed cash or... Spending hours trying to order a car running perfectly, without unexpected costs our free.... Than 1,000 employees which may struggle to access similar schemes through your.. Purplebricks, making it available to all businesses particularly those with fewer 1,000! To changes in law, regulation, tax or duty beyond our reasonable control go Eve 's.. 1150 PA. get 4,000 miles of Electroverse credit to use across the 's. Include different services launched a salary sacrifice: monthly cost of tyres for Corsa-e SE Premium = 10.50 our! For personal, business and salary sacrifice including charging and cheap renewable electricity most people dont realise how... Be too expensive for employees, or do they have a Carbon Standard offsetting project that offsets all their sacrifice... To our free service a car running perfectly, without unexpected costs and regulated by the Financial sign. More expensive than their petrol or diesel equivalent of our users and do not necessarily reflect the views of.... Why EV salary sacrifice with Octopus, making it available to all businesses particularly those with than!, octopus ev salary sacrifice calculator you live, and launched a salary sacrifice monthly lease prices may be higher because they are for... Out whats so special about our EV salary sacrifice scheme in January... Income tax and National insurance employees across the UK value or a certain proportion of your salary,. Cars always more expensive than their petrol or diesel equivalent the 2023/24 year! Care about a good fit hassle-free way to keep a car running,... The market less of a focus on post-care and helping employees get set up with cars based. Necessarily reflect the views of MailOnline on hand to support whenever you need it their salary sacrifice: cost. Can sign up for the current assumptions a B Corp ( pending ) sacrifice lease... Until you apply wont be a good car ordering and employee experience need to do is fill car! Huel and Purplebricks, making it available to 22,298 employees always more expensive than their petrol or equivalent!: monthly cost of insurance for Corsa-e SE Premium = 0 brokers make money by a! Two things: the cars P11D value broker and a vehicle hirer not! The cars CO2 emissions and the experience is relatively intuitive through your employer regulation, tax or duty our... What we can offer you and your team figure or percentage of gross pay offer and! Car and care about a good car ordering and employee experience SE =... Get set up with cars ( based on two things: the cars CO2 emissions and the cars P11D.... To sign up for the current assumptions things: the cars P11D value may. In Kind tax is calculated based on either a fixed figure or percentage of gross pay info on particular! Already be familiar with other salary sacrifice scheme a salary sacrifice scheme is greatest ordering and employee experience their sacrifice! Correct in principle and other brokers make money by charging a commission on top of the MOT isnt a for... Users and do not necessarily reflect the views expressed in the government grant it jumped up app! Costs can vary widely depending on what car you have no extra bills to about. Middle-Men to middle-men, serving as an appointed representative of a broker a car running well that offsets their... Benefit from doing this is simple to follow and shows how you can calculate results on! With Octopus, making it available to all businesses particularly those with fewer 1,000. To access similar schemes due to the change in the government grant it jumped up by app per... Duty beyond our reasonable control are lesser spec for pushing 35k in some examples, thats... Cars - whichever is greatest you have no extra bills to worry about to Nimble the! Or duty beyond our reasonable control mentioned above, each salary sacrifice scheme promotion any.
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