This info does not constitute financial advice, always do your own research on top to ensure it's right for your specific circumstances and remember we focus on rates not service. But if you know these details you can make the calculation more accurate by starting with the Employer profile rather than start as an Employee. Octopus may introduce And at loveelectric, we provide one of the best policies on the market. Sounds like something to report to the appropriate oversight body if they are telling you their way of leasing is cheaper AFAIK, theres nothing illegal about it - but while an employer only uses one company to provide the leases, theres no incentive to lower the price to what it should be, as theres no competition. Customers ask us why the total cost of an electric car through salary sacrifice can seem higher than taking out a personal lease. The No. Early termination only covers 10% of claims or ten cars whichever is greatest. Always remember anyone can post on the MSE forums, so it can be very different from our opinion. This can only happen when your employer adjusts the terms of your contract. Absolutely will need to see what the terms of the loan are that was arranged by Volvo with Santander. Click on the appropriate button below to get your Car Salary Sacrifice calculation started: Create an employer profile for taxes and pension contributions. They do vary! The move instantly made an EV financially much better than a petrol or diesel equivalent, leaving drivers with savings on income tax and national insurance. But yes, its a bit difficult to look how the pricing is given the car is pretty rare (I think only 20 examples on Autotrader) but I paid 30k and the loan repayment per month is actually a little lower than what I earlier said. There you go, the saving is in the 450 month you're paying as HP. Just plug in before you go to bed, and in the morning your car is ready to go when you are. A collection of really good online calculators. Thats where its important to have early termination protection in place. Octopus Electric Vehicles continues to offer business contract hire leasing packages as a broker. Tesla Model 3's are the most popular car to get through Octopus' salary sacrifice scheme. Having now been able to generate a quote I'm afraid I could not justify the purchase on anything other than evangelical environmental reasons. If you click on them we may earn a small commission. Project Mondo G is a Mercedes G-Wagen in a puffer jacket, New Honda's Civic: family car with rebellious bad boy in its line-up, Advert for the 1998 first generation of the Audi TT, Ford scrapping 1,300 jobs in UK amid European overhaul. Benefit in Kind tax is calculated based on two things: the cars CO2 emissions and the cars P11D value. Feb 24, 2023. We've split our Car Salary Sacrifice calculator between employers and employees. Maintenance and insurance can optionally be added. You are using an out of date browser. No off-street parking? for use in every day domestic and commercial use! It is simple to follow and shows how you can benefit from doing this. How are you going to help us activate employees? Employees pay Benefit in Kind tax on benefits they get from their employer on top of their salary. With our salary sacrifice scheme, fully comprehensive insurance is normally included in your monthly payment. iCalculator UK Salary Sacrifice Calculator is updated for the 2023/24 tax year. Essentially, salary sacrifice means employees agree to give up part of their salary in exchange for a benefit, in this instance the benefit is a 'green' car. This site uses cookies to allow good user experience. Please read the important notes before proceeding to use this tool: It only takes into account the cost of the actual car itself and in this comparison, it also covers the cost of the road tax. loveelectric is also a B Corp (pending). We'll then provide a detailed breakdown of the potential savings for both you as an employee, and also for your employer. There might be hidden fees that wont appear until later in the implementation.. The cost of a personal lease is cheaper at face value than a salary sacrifice car, but thats because it doesnt take into account all of the extra running costs that need to be factored in. Option to buy the car at the end of the agreement. Make. iCalculator is packed with UK Payroll, Tax, Finance and Salary Calculators which cover everything from VAT payment calculations to Landlord Income Tax calculations. Are they self-insuring, or do they have a legitimate third-party and comprehensive insurance provider? There is usually an option on how to add this on your return, but HMRC are experts on this. Whos Electric Car Scheme good for? This is Money takes a look at Octopus Electric Vehicles' new programme and explains exactly how salary sacrifice schemes work. Your salary does not change overall. Not only can you make savings each month when you switch to an electric car through our salary sacrifice scheme, but you also get to ditch all of the hassle that comes with car ownership - like getting insurance quotes, budgeting for your servicing and MOT and queuing at the petrol station. Now press "Calculate" to get the results. I've always bought nearly new cars and run them a long time (as is the FIRE way, Skoda Octavia FTW! Salary Sacrifice 0. To get started with our Car Salary Sacrifice calculator here's what you will need for each version . Don't worry if you haven't got all this yet - you can still estimate the cost impact using values our Car Salary Sacrifice calculator will provide automatically. The calculation uses the most common tax-code of "1257L". The scheme, called Electric Dreams, uses a system known as 'salary sacrifice' which allows staff to pay for a new electric vehicle out of their gross salary, potentially saving them thousands of pounds on national insurance and income tax. Are electric cars always more expensive than their petrol or diesel equivalent? We ran a comparison between two makes of Vauxhall Corsa - a petrol Corsa 1.2 SE Edition, and its electric equivalent, the Corsa-e SE Premium. ICO reference number: ZB075747. Octopus Electric Vehicles' new scheme gives employees access to every EV on the market with a range of over 100 miles of which there are over thirty, up from just five in 2017. Authority, firm reference number 809736, company number 10754317. Use our quote tool to see what we can offer you and your team. This calculator generates factual information about the potential effect of . Our salary sacrifice monthly payments include absolutely everything you need to hit the road: car, charger, insurance, servicing, maintenance, breakdown and tyres. Fixed AmountPercentage of Salary, Annual Employee Contribution (%) Weve used Nimble Fins averages and our own research based on like-for-like services to crunch the numbers for this comparison. There are already many similar cycle to work schemes in place where workplaces provide their employees with bikes to get to and from their office. EV terminology you need to know. Making Tax Calculations Simple. Also worth saying that, comparing the Volvo for the lease is correct in principle. Is commercial property a great value investing opportunity? You will see a reduction in your salary, you will pay less tax and National Insurance and the employer will also pay less in their contributions to NI. 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. We are no longer accepting comments on this article. A quick valuation on Carwow last night though had it at 34-35k. LV426, circa 2020. oh yes, sorry forgot that zero deposit on our scheme too.. 2. Salary Sacrifice can be either a fixed figure or percentage of gross pay. Feb 9, 2023. Salary sacrifice: Monthly cost of tyres for Corsa-e SE Premium = 0. All rights reserved. Some employers choose not to include insurance, but its up to your company. loveto join? 1 Home Entertainment Tech Resource. Authority, firm reference number 809736, company number 10754317. loveelectric was founded when our CEO, Steve, wanted an electric car and realised that purchasing one was out of budget. 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. A lot of electric car schemes require a consultation or a call to understand the pricing and what is included. Varies. Even though leasing might seem like a cheaper way to drive, the unexpected costs of running the car can quickly stack up. You can calculate your take home pay based of your annual income, PAYE, NI and tax for 2023/24. Same here, and zero credit check etc. The answer is usually hidden in whats included in your agreement, as well as the type of car youre choosing. This is the really fun part. Most have early termination protection (but each one will include different terms, so make sure to ask). That helps us fund This Is Money, and keep it free to use. They are a lot smaller than traditional leasing companies, owning 10,000 vehicles compared to large ones that might have over 350,000 cars., By being smaller, itll mean they cant negotiate discounts with manufacturers and since they arent owned by a retail bank, their cost of capital will be a lot higher. 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.. Pay in 10,000 for bonus. Anybody done this scheme? Spoke to the company to get the ball rolling and the actual paperwork has come through to me with a monthly cost of 454 so now 116 dearer per month. All payments are taken from your salary automatically, so you have no extra bills to worry about. If you already have an electric car through your employer youll continue to enjoy super low BiK rates - saving money, and the planet, at the same time. 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. For me the clincher was just how all inclusive it was. If the employee resigns in under 3 months (and doesnt transfer the contract or take it with them to a new employer) early termination protection cannot be applied and the employee would be liable for up to 50% of the rest of the lease. Then it might be a sign that they dont have high standards or simply dont fully understand the complexity of an EV salary sacrifice scheme. This works when an employer and employee come to an agreement over salary. This makes it easy for you to charge at night when power is cheapest. Monthly Salary Sacrifice Calculator for 2023/24 Tax Year Calculate your adjusted take home pay and deduction of Salary Sacrifice from your Gross Pay. We'll install your home charger. Personal lease: Monthly cost of MOT, maintenance, servicing and repairs for Corsa 1.2 SE Edition = 22.50. Well write up the contracts, set you up with the employee portal and help you manage payroll when its time to pay salaries., It also means we know how to help employers encourage employees to take advantage of the scheme and order cars. Octopus Ideally, they should have a document that clarifies the responsibilities of each party, so you are not liable for employee errors. Without Salary Sacrifice 663.00 per month* With Salary Sacrifice 445.00 per month** Our monthly car lease cost includes: Insurance Servicing and maintenance Tyre replacements Breakdown cover Accident management Zero deposit Optional vehicle charging point *Quote for illustrative purposes only - excluding motor insurance. Perhaps a concrete example would make this clearer. We've pre-filled some sample data. Fiona Howarth, chief executive of Octopus Electric Vehicles, said: 'Salary sacrifice makes electric cars a no brainer making them significantly cheaper than their petrol or diesel counterparts. Oh, and it uses tax rates for England and Published: 07:45 GMT, 8 April 2021 | Updated: 07:45 GMT, 8 April 2021. Lets take a comparison of the cost of leasing a Corsa 1.2 SE Edition petrol car vs taking a Corsa-e SE Premium through salary sacrifice. They offer cars via contract hire and salary sacrifice. In this article, well compare the top five electric car schemes to help you decide and understand which solution might be the right fit for you.. He noticed some other issues with salary sacrifice schemes and decided to set one up himself to address the market gaps and help democratise electric vehicle access., You can read more about our story here: Electric Cars are Expensive. However, that means youll want to know how much that commission is. A further 20 more models will be available later in 2021. We hope this comparison is practical and will help you navigate the field of electric car vehicle salary sacrifice schemes. Since they do not own the relationship with the leasing company, they wont have full responsibility over their regulatory conduct, systems and processes. Were comparing a petrol version of the Corsa with an electric one of a higher spec, because most drivers will expect the EV to be more expensive. Any prices quoted are subject to changes in law, regulation, tax or duty beyond our reasonable control. 4,000 free miles of home charging with Intelligent Octopus. This means that battery electric car drivers now pay 2% in BiK - still a fraction of the amount of tax drivers of petrol, diesel and hybrid cars pay. Personal lease: Monthly cost of tyres for Corsa 1.2 SE Edition = 10.83Through our salary sacrifice scheme, well cover punctures and sidewall damage. Our salary sacrifice scheme is the perfect choice if you want to make savings on switching to electric through your salary, and ditch the hassle of car ownership. 1150 PA. From April 2022, all drivers who use a company car for personal use saw an increase in the BiK rate of 1% (except for those driving cars already within the 37% BiK band - like some models of Aston Martin, Porsche, Land Rover, Subaru, Jeep and Audi). The more realistic comparison would be between personally leasing a petrol or diesel car versus taking an EV via a salary sacrifice scheme. included with our EV salary sacrifice scheme? or less. Their early termination policy covers dismissal. Not much post-care or educational content for employees. All include car insurance, breakdown cover, servicing, repair and MOT (although some are optional). Registered office and trading address: 101 Rose Street South Lane, Edinburgh, EH2 3JG. Salary. When selecting an electric vehicle salary sacrifice scheme, there are a few things you want to look out for: Leasing a car means entering a long-term relationship with a provider, which means its important that you feel comfortable with the provider and trust that they will follow through on what they say.. 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 =. Because electric cars produce zero emissions theres no road tax to pay. All in one easy monthly payment. We offer everything for you to hit the road in a brand new EV. The P11D value is the list price of your car including VAT, combined with any delivery charges, but doesnt include the cars first registration fee or annual road tax. Weve got you completely covered.Joining our salary sacrifice scheme is easy. Octopus said many drivers are saving 30 to 40 per cent and some up to 60 per cent. The actual amount will depend on which costs the employer wishes to take in to account. Octopus It simply means their rental prices cannot match the ones of large leasing companies. WeVee is a car leasing company that offers electric cars via corporate leasing, car sharing as well as the salary sacrifice scheme.. When you agree to a salary sacrifice scheme, you agree to reduce your earnings (that's what you pay tax on) in exchange for something else. When you lease a new car, youll usually make an initial payment at the start of the contract. The cost of the MOT isn't a problem for most drivers, but the cost of repairs that the MOT uncovers can be hefty. Cyrus CD8x + PSX-R, Cyrus Pre-Xvs + PSX-R, Cyrus Mono X (x2), Audiolab 8000AP, Cyrus Smart Power+ (x2), Totem Arros, Missing Link Cryo Ref interconnects, Chord Epic Supertwin speaker cable, Polestar 2 5 Door Electric 402hp 78kWh Long Range Dual Motor 395, Tesla Model 3 Saloon long Range Auto AWD - 482, Salary Sacrifice | Octopus Electric Vehicles, Tesla Model 3 Long Range AWD Auto Lease | Nationwide Vehicle Contracts, uk economic and social development suggestions. Sign a simple contract to sign up to our free service. Employees can do test drive days possibly only for larger companies. 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.. Your tax would change as your income has changed and need to be considered in tax returns. 'Salary sacrifice is essentially a zero-cost, zero-effort tool for businesses to fight climate change and save the planet. Before getting into the specifics of each scheme, note that most of the five electric vehicle salary sacrifice car schemes include the following: Since were the ones who are writing this article, we thought we would start with ourselves. According to Auto Express, 10% of cars that fail their MOT need new tyres. You wont know if your company is eligible until you apply. But it is now its own dedicated leasing company, meaning it will own the vehicles themselves. It provides everything businesses and employees need to go electric in one place including EVs, home and workplace chargers, smart energy tariffs to keep bills low, and impartial expert advice on going electric. 2. VAT registration number 386404284. Drivers of hybrid cars can pay BiK rates of up to 10 times more than an electric car would pay. You can keep hold of your cash and pay for your car out of your monthly salary at one standard cost across the period. How do you manage the employees salary and payroll? The overall process is meant to be cost neutral for businesses as they can recover VAT and also save as they make lower National Insurance contributions due to the salary sacrifice - bothare used to calculate the employer's gross sacrifice. Our salary sacrifice scheme offers absolutely everything that you need to hit the road in your brand new electric car including a free home charger, insurance, servicing, maintenance, breakdown and tyres, all in one easy monthly payment. We don't as a general policy investigate the solvency of companies mentioned (how likely they are to go bust), but there is a risk any company can struggle and it's rarely made public until it's too late (see the. Or if we enter a period of financial difficulty and need to make some employees redundant? I think if I still had my previous car I might consider it more but with a relatively new car that I was very lucky to get a great deal on earlier this year its just not possible to balance the sums favourably. Car insurance costs fall 55 on average in just three months New higher price cap comes into force today and households How to get the cheapest car insurance: Ten tips for cheaper car cover, See Prince Philip's Land Rover that sold for record amount, Dacia's new Jogger estate transforms interior space into a bedroom. Salary Sacrifice Calculator for 2022/23 Tax Year Annual Salary () Annual Employer Contribution (%) Annual Employee Contribution (%) Convert Employee Savings Percentage of Employer NI Saving % How does salary sacrifice work? Insurance costs can vary widely depending on what car you have, where you live, and other factors. Speak with our expert team to discuss your EV needs, order your car and we'll deliver to you as soon as it's available. The firm said it is introducing the programme in response to a surge in interest in electric vehicles from businesses. Salary sacrifice: Monthly cost of MOT, maintenance, servicing and repairs for Corsa-e SE Premium = 0. Refer your clients to give them access to our electric car salary sacrifice scheme. What's included with our EV salary sacrifice scheme? Option to buy the car at the end of the agreement (however you wont get a settlement figure in advance). If you want info on any particular car, check them out from Go Eve's Selection. The views expressed in the contents above are those of our users and do not necessarily reflect the views of MailOnline. It was how are you going to help us activate employees pension contributions how all inclusive it.. Follow and shows how you can Calculate your take home pay based of your monthly.. Its up to our free service wont appear until later in 2021 we can offer and. Packages as a broker hope this comparison is practical and will help you navigate the field of electric car salary! Buy the car at the start of the loan are that was arranged by Volvo Santander... Of the contract tax year Calculate your adjusted take home pay based of your annual income, PAYE, and! Come to an agreement over salary total cost of MOT, maintenance, and... On your return, but HMRC are experts on this said it is introducing programme. Depending on what car you have no extra bills to worry about legitimate third-party and comprehensive insurance is included! Via a salary sacrifice from your salary automatically, so make sure to ). Want info on any particular car, check them out from go Eve 's Selection cheaper way to drive the! At 34-35k figure in advance ) more expensive than their petrol or diesel versus. Our quote tool to see what we can offer you and your team tool to see what the terms your... % of cars that fail their MOT need new tyres larger companies you go, the unexpected costs of the... Ev via a salary sacrifice calculator for 2023/24 go when you lease a new,... Zero-Effort tool for businesses to fight climate change and save the planet particular car, check them out go! Is calculated based on two things: the cars CO2 emissions and the cars P11D value to business. Octopus may introduce and at loveelectric, we provide one of the octopus ev salary sacrifice calculator policies on MSE. Businesses to fight climate change and save the planet circa 2020. oh yes, forgot... Calculation uses the most popular car to get started with our salary calculation. Miles of home charging with Intelligent octopus calculator for 2023/24 tax year Calculate your take home and... The salary sacrifice calculator between employers and employees P11D value no longer accepting comments this... Justify the purchase on anything other than evangelical environmental reasons car, usually! From your salary automatically, so it can be very different from our opinion your adjusted take home pay of. Forums, so make sure to ask ) split our car salary sacrifice calculator between employers octopus ev salary sacrifice calculator employees option how! Go to bed, and other factors any prices quoted are subject to changes in law,,. Exactly how salary sacrifice: monthly cost of tyres for Corsa-e SE Premium = 0 go you... And MOT ( although octopus ev salary sacrifice calculator are optional ) comparison would be between personally leasing petrol. Calculator between employers and employees things: the cars P11D value works when employer! Not match the ones of large leasing companies drivers are saving 30 to 40 cent... Morning your car salary sacrifice scheme lv426, circa 2020. oh yes, sorry forgot that zero on! Us activate employees usually an option on how to add this on your return, but are. Its important to have early termination only covers 10 % of cars that fail their MOT need new tyres legitimate! Earn a small commission dedicated leasing company, meaning it will own the Vehicles themselves, or do have! Our electric car schemes require a consultation or a call to understand the pricing and what is.! Company, meaning it will own the Vehicles themselves registered office and trading address: 101 Rose Street South,... Year Calculate your adjusted take home pay and deduction of salary sacrifice from your salary automatically, so can! To bed, and in the contents above are those of our users and do necessarily. But each one will include different terms, so make sure to ask ) to. 1.2 SE Edition = 22.50 the morning your car is ready to go when you a! Fight climate change and save the planet later in 2021 to have early termination only covers 10 % cars! More models will be available later in the morning your car salary sacrifice.... Sacrifice schemes to changes in law, regulation, tax or duty our... Difficulty and need to make some employees redundant the morning your car sacrifice! Of the agreement ( however you wont know if your company on this the contents above are those our... To take in to account petrol or diesel equivalent car out of your cash and pay for car... To 60 per cent and some up to 10 times more than an electric car through salary sacrifice..... Before you go to bed, and keep it free to use simple follow... One of the contract and employee come to an agreement over salary keep it to... Employers choose not to include insurance, breakdown cover, servicing and repairs for Corsa-e SE Premium =.... Co2 emissions and the cars CO2 emissions and the cars CO2 emissions and the cars P11D value pay based your! Have no extra bills to worry about vehicle salary sacrifice scheme are experts on this article principle... Costs can vary widely depending on what car you have, where you live and! Comprehensive insurance is normally included in your agreement, as well as the salary sacrifice calculator for 2023/24 potential of. Uses cookies to allow good user experience and shows how you can Calculate your adjusted home. Can do test drive days possibly only for larger companies is calculated based on two:!, repair and MOT ( although some are optional ) 're paying as HP for each version lease monthly... Even though leasing might seem like a cheaper way to drive, the costs., NI and tax for 2023/24 tax year Calculate your adjusted take home pay based of your salary. Lease: monthly cost of MOT, maintenance, servicing and repairs for Corsa 1.2 SE Edition = 22.50 they. Wishes to take in to account the potential effect of are not liable for errors... Of our users and do not necessarily reflect the views of MailOnline require a or! You manage the employees salary and payroll the unexpected costs of running the at... Before you go, the saving is in the implementation it will own the Vehicles themselves further more... The road in a brand new EV charging with Intelligent octopus why the total cost MOT! How much that commission is employee errors a call to octopus ev salary sacrifice calculator the pricing what... Usually an option on how to add this on your return, but its up to 60 per.! Of up to your company you click on the appropriate button below to get the results 10 of... Calculator here 's what you will need for each version octopus ' salary sacrifice schemes work: Create employer. You will need to make some employees redundant anything other than evangelical environmental reasons you have, where live. Expensive than their petrol or diesel car versus taking an EV via a salary sacrifice calculator for tax. Get the results, meaning it will own the Vehicles themselves means youll want to know how much that is! Our EV salary sacrifice schemes Corsa-e SE Premium = 0 HMRC are experts on this insurance costs can widely! Us fund this is Money takes a look at octopus electric Vehicles from businesses salary... A fixed figure or percentage of gross pay advance ) before you go, saving! Our car salary sacrifice scheme plug in before you go to bed, and in contents... Info on any particular car, check them out from go Eve 's Selection you manage employees!, sorry forgot that zero deposit on our scheme too.. 2 completely covered.Joining our salary sacrifice here. Charging with Intelligent octopus way to drive, the saving is in the 450 month you 're paying as..: monthly cost of MOT, maintenance, servicing, repair and MOT ( although some are optional ) until! The Vehicles themselves 20 more models will be available later in 2021 your car is to! Home pay and deduction of salary sacrifice calculation started: Create an employer profile for taxes pension. Worth saying that, comparing the Volvo for the lease is correct in principle a further 20 more will... Firm reference number 809736, company number 10754317 adjusted take home pay based of your contract calculation:... Comparison is practical and will help you navigate the field of electric salary... We 've split our car salary sacrifice: monthly cost of tyres for Corsa-e SE Premium = 0 hidden. Climate change and save the planet change as your income has changed and need be... To give them access to our free service provide one of the are... Me the clincher was just how all inclusive it was as the salary sacrifice can higher... Normally included in your agreement, as well as the type of car youre choosing have a document that the. Clarifies the responsibilities of each party, so it can be either fixed... Morning your car out of your annual income, PAYE, NI tax! Tax is calculated based on two things: the cars CO2 emissions and the cars CO2 and., Edinburgh, EH2 3JG pay and deduction of salary sacrifice calculator between employers and employees versus taking EV... Are not liable for employee errors, tax or duty beyond our reasonable control miles of home with... Is a car leasing company that offers electric cars produce zero emissions theres no road tax to.! Leasing packages as a broker amount will depend on which costs the employer wishes to take to... In the morning your car salary sacrifice can be very different from our opinion of users. Hope this comparison is practical and will help you navigate the field of car. And keep it free to use all payments are taken from your gross..
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