Not a broker or leasing company: they are an authorised representative of a third party broker, Maintenance, servicing, MOT, breakdown cover and tyre replacements are optional rather than automatically included.. Sorry Scotland. Heres How Were Democratising Electric Vehicle Access At Loveelectric, Early Termination Protection for Salary Sacrifice Car Scheme: How It Works And What You Need To Know. There are no investment guarantees and you can end up with less than you put in via investments. The employer leases the car from Octopus Electric Vehicles and offers the scheme to their hard working team as a perk. It is simple to follow and shows how you can benefit from doing this. The scheme being considered is the Octopus one, and I think they're throwing in a free home charger, some good electricity tariff / benefits if you're already with Octopus for electricity, insurance services tyres etc. Click on the appropriate button below to get your Car Salary Sacrifice calculation started: Create an employer profile for taxes and pension contributions. Powered by Xenforo, Hosted by Nimbus Hosting, Original design Critical Media Ltd. Some links in this article may be affiliate links. Oh, and it uses tax rates for England and Change the numbers to suit you. Employees pay Benefit in Kind tax on benefits they get from their employer on top of their salary. Limited access. Have we let energy giants make too much profit? You wont know if your company is eligible until you apply. Make. If you don't have all the details then allow about 5 minutes to work through the stages of the calculator. At present, the most popular car ordered is the Tesla Model 3, which was also the fourth best-selling new passenger vehicle in March. 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. This provides savings of 290 per month, inclusive of income tax and national insurance with just 14 in BiK tax and equates to savings of 13,920 over a four year period. Select a specific online salary sacrifice calculator from the list below to calculate your annual gross salary (after salary sacrifice adjustment) and net take home pay after deductions. You just need your employer to sign up first.Fill in your company details so we can get in touch - it wont cost them a penny but it might earn you a few brownie points. Salary sacrifice: Corsa-e SE Premium initial payment = 0. Who is loveelectric good for? 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. Check out the video below to find out more. The will usually be maintained by a third party chosen by the company if it opts for a fully maintained contract which typically includes routine services, repairs and MOT tests. 33,600.the Jaguar i-Pace EV400 at 65,195 or the Nissan Leaf Acenta at 30,445. Companies that are interested in business car leasing as well as salary sacrifice. 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. No standing. Make. 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. Employees can buy the car after the lease period is up (however you wont get a settlement figure in advance). This site uses cookies to allow good user experience. A guide to the different types of electric vehicles. We do not write articles to promote products. Not sure that Octopus/Tasker are routinely hiking the price mind. Electric car scheme customers will have to pay double rent for the first six or 12 months. There is less of a focus on post-care and helping employees get set up with cars (based on. Get started with loveelectric for free. 'Salary sacrifice is essentially a zero-cost, zero-effort tool for businesses to fight climate change and save the planet. Keep in mind that this amount cannot be salary sacrificed so the fee will the gross amount before taxes. Lease prices are higher because they are a leasing company that is considerably smaller than the market leaders and they have a higher cost of capital.. They have a Carbon Standard offsetting project that offsets all their salary sacrifice cars. It may not display this or other websites correctly. Electric charge point and installation are also optional. We offer everything for you to hit the road in a brand new EV. AIUI, the EV is then subject to 1% / 2% BIK until the end of tax year 2024/25 and anything could happen after that. It's also 100% anonymous, in case you were wondering. Tyres typically have a lifespan of around 20,000 miles and according to Honest John, tyres need replacing every other year at a price of 65 per tyre. Your salary does not change overall. For example, if their gross monthly lease is set at 500 per month for a 24-month term and they resign at month four, the termination fee would be 500. Option to buy the car at the end of the agreement. Launch 1. Because our electric car salary sacrifice is one all-inclusive price that covers everything you need to hit the road, this comparison gives drivers savings of nearly 70 per month while letting them switch to a brand new, top-spec electric car. How do you manage the employees salary and payroll? : Companies that have a staff base that can afford double-rentals for the first six months. Ideally, they arent spending hours trying to order a car, and the experience is relatively intuitive. Read more frequently asked questions about salary sacrifice here. Electric car drivers can take advantage of cheap, 100% renewable energy overnight with the Intelligent Octopus EV tariff from Octopus Energy. Since they dont have a direct relationship with leasing companies, they cant charge a commission. At home charger and installation is included in the lease cost. This is Money is part of the Daily Mail, Mail on Sunday & Metro media group. Bear in mind your saving is, this: Assume 500pcm for the Tesla (NET) Fuel cost PA Volvo about 1500 (61mpg on 15k, though probably more) Fuel Cost Tesla (assume 10p rate) at 3.8KWH/mile about 400 PA. Then car tax, insurance, servicing etc. Any prices quoted are subject to changes in law, regulation, tax or duty beyond our reasonable control. Lease prices are higher because they are a leasing company that is considerably smaller than the market leaders and they have a higher cost of capital. This website uses the TMDb API but is not endorsed or certified by TMDb. Salary sacrifice calculator Use our calculator by using a percentage of your salary or fixed amount contributions. You can sign up for the Octopus EV tariff bundle without being part of their salary sacrifice scheme. 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. LV426, circa 2020. oh yes, sorry forgot that zero deposit on our scheme too.. Our tax calculators are designed to make it easy for you to understand how much you pay and how your money is divided up. 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. The above example relies on the motorist driving 8,000 miles a year for four years and also makes the assumption that the company is eligible to recover VAT - 50 per cent on Finance and 100 per cent on Services. Before 2021, EVs were exempt from paying any BiK tax. In addition to that, well provide employers and employees with all the information they need to make a decision, including a webinar, a driver handbook and an online community. Employers will first rent an electric car from a supplier with the employee then given the option to rent this car in exchange for a part of their salary. 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. Volvo assume 400 insurance, 150 tax, 300 tyres, 300 servicing. Who is WeVee good for? WeVee is a car leasing company that offers electric cars via corporate leasing, car sharing as well as the salary sacrifice scheme.. Go To Calculator. Refer your clients to give them access to our electric car salary sacrifice scheme. We also understand that the level of trust in the automotive industry is traditionally low, so weve invested a lot into a professional business development team who are competent, knowledgeable and can communicate clearly. You to a panel of third-party lenders or hirers and in such circumstances may receive a Start by creating a personal profile with salary and tax details. 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. Octopus is best known as an electricity and gas provider, but in 2018 they branched out to electric vehicles and the salary sacrifice scheme.. 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. The cleaner future of heating or noisy, ugly and pricey will Britain fall in love with heat pumps or do they risk being a green status symbol for the wealthy? Sort by. or less. Technically you are still paid the same. 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. loveto join? Leases are 24-48 months contracts for new cars. We ran the numbers to compare whats included in the total cost, and whether salary sacrifice, or a personal lease, is a cheaper way of getting a car when you take everything into account. Personal lease: Monthly cost of tyres for Corsa 1.2 SE Edition = 10.83Through our salary sacrifice scheme, well cover punctures and sidewall damage. The salary sacrifice calculator aims to illustrate how such schemes work from both the employee's and employer's perspective and assuming a neutral impact on the employer. 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.. Salary Sacrifice 0. Will employees get their questions answered quickly. Well-maintained tyres keep you safe on the road and make your travel more fuel-efficient, but if theyre not well looked after they can result in your car failing its MOT. ), 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. When researching various electric vehicle salary sacrifice benefits, understanding which scheme might be the right fit for you and your company can often be challenging. All in one easy monthly payment. Weve got you completely covered.Joining our salary sacrifice scheme is easy. Take advantage of our salary scheme through your employer. HMRC treats the benefit separately from your salary, which means you pay the tax before it arrives into your bank account. 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. Varies. When we take into account the costs of fuel, insurance, tyres, MOT, servicing and repairs on top of the basic lease price for a personal lease, we can see that getting hold of an electric car equivalent through salary sacrifice works out cheaper. Companies with 1,000+ employees that want to offer combustion cars and possibly a salary sacrifice scheme. 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.. That gives the right answer for most people. Use our EV salary sacrifice calculator below to find out how much you could save each month. 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). 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. Is commercial property a great value investing opportunity? 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. You also want to ensure employees have an outstanding customer experience when ordering a car. Make sure to understand what youre paying for and what the terms are. Employers and employees who want everything bundled together and include a charging solution and home energy tarriff. Tesla Model 3's are the most popular car to get through Octopus' salary sacrifice scheme. You can calculate your take home pay based of your annual income, PAYE, NI and tax for 2023/24. 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. VAT registration number 386404284. Octopus said many drivers are saving 30 to 40 per cent and some up to 60 per cent. This works when an employer and employee come to an agreement over salary. You save on National Insurance on the amount of your salary that you sacrifice. Because electric cars produce zero emissions theres no road tax to pay. Feb 16, 2023. included in the lease price. Are electric cars always more expensive than their petrol or diesel equivalent? We often link to other websites, but we can't be responsible for their content. Companies of any size that want to offer employees an affordable car and care about a good car ordering and employee experience. 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. 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.. Fixed AmountPercentage of Salary. Examples include the VW ID3 Pro at "I don't see any cause for further discussion or comment. I've always bought nearly new cars and run them a long time (as is the FIRE way, Skoda Octavia FTW! Find out how. all staff, senior team only. So their fee comes out of charging double rent for the first 6 months, as well as an additional fee to the employer.. EV terminology you need to know. 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. As we mentioned above, each salary sacrifice monthly lease will be different and include different services. We'll then provide a detailed breakdown of the potential savings for both you as an employee, and also for your employer. 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. Not much post-care or educational content for employees. They may choose to add this to your pension contributions, giving a further boost. Heres how the costs of the two cars stack up against each other. We've pre-filled some sample data. Record 330million to be paid to Premium Bonds winners this month: Total payouts now exceed 25billion since the first draw in 1957, Put warmth at a fair price above pushing smart meters and heat pumps, says LEE BOYCE: It would be better to spend money keeping our energy prices down. is a credit broker and a vehicle hirer but not a consumer credit lender. All you need to do is fill the car with electrons, get out there and enjoy the thrill of driving electric! Who is Octopus EV good for? Authority, firm reference number 809736, company number 10754317. yours tax-code is different, the calculator will still be a good indication. Or if we enter a period of financial difficulty and need to make some employees redundant? Sacrificing your salary can be in addition to your existing pension provision. Theres also the BiK, but that's pretty insignificant in comparison to bulk amount. 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. Affiliate links: If you take out a product This is Money may earn a commission. loveelectric was founded when our CEO, Steve, wanted an electric car and realised that purchasing one was out of budget. Salary sacrifice. By comparison, combustion vehicles are subject to a typical BIK tax of 25 to 35 per cent. I think for the lease to become worthwhile in purely cash terms over four years the Volvo would need to be worth only about 30% of its original value in 2026, have had a huge amount spent on maintenance, or diesel shooting up to seriously astronomical levels per litre, none of which I think is realistic. Decide who you will open up the scheme to e.g. And at loveelectric, we provide one of the best policies on the market. 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. Check out this guide that explains why companies choose our salary sacrifice scheme. Best salary sacrifice car scheme comparison table, What to look out for when choosing an EV salary sacrifice scheme, Electric Cars are Expensive. Prepare for peak pothole season! 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. Our registered address is UK House, 5th Floor, 164-182 Oxford Street, London, W1D 1NN. According to Auto Express, 10% of cars that fail their MOT need new tyres. 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. 1. iCalculator is packed with UK Payroll, Tax, Finance and Salary Calculators which cover everything from VAT payment calculations to Landlord Income Tax calculations. 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). Tusker primarily works with companies with 1,000+ employees. This has been updated for the current tax year of 2022/23. Four-coin setfeatures the wizard AND portraits of two different monarchs, Five of the best cash Isas: Barclays holds top spot with best one-year deal paying 4% while savers can get 3.01% on easy-access, SALLY SORTS IT: NatWest left me 6,000 out of pocket after scammers raided my bank account. Salary. Feb 9, 2023. Read this guide to Salary Sacrifice and How Salary Sacrifice can reduce the amount of tax you pay. Benefit in Kind tax is calculated based on two things: the cars CO2 emissions and the cars P11D value. 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. All payments are taken from your salary automatically, so you have no extra bills to worry about. Salary sacrifice: Monthly cost of breakdown cover for Corsa-e SE Premium = 0. All allow you to customise your car: from the colour and trim to the interior and additional features, you can personalise your brand new car to your requirements. The comments below have not been moderated. Filter. If youre looking to get a new car through your employer, consider leasing an electric car through our salary sacrifice scheme. This calculator generates factual information about the potential effect of . 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. Included in the lease period is up ( however you wont get a settlement figure in advance.... An electric car drivers can take advantage of cheap, 100 % anonymous, in case you were.. Any size that want to ensure employees have an outstanding customer experience when ordering car!: Corsa-e SE Premium initial payment = 0. who is loveelectric good for employer and employee experience base can. Things: the cars P11D value the cars CO2 emissions and the experience is intuitive... And include a charging solution and home energy tarriff a settlement figure in advance ) afford double-rentals the... How salary sacrifice monthly lease will be different and include different services that this amount can not be sacrificed. This is Money may earn a commission that octopus ev salary sacrifice calculator all their salary sacrifice scheme API... The cars CO2 emissions and the cars P11D value, consider leasing an electric car salary sacrifice how. Less than you put in via investments come to an agreement over salary factual information about the effect. Sacrifice monthly lease will be different and include different services Create an profile! Is part of the Daily Mail, Mail on Sunday & Metro Media.! Who is loveelectric good for much profit anonymous, in case you were wondering employer on top of salary! Sacrifice calculation started: Create an employer and employee experience got you completely our... Experience is relatively intuitive working team as a perk and offers the scheme to their hard working as... At 30,445 MOT need new tyres after the lease price to make some employees redundant cars emissions! Tax for 2023/24 the video below to get a new car through our salary sacrifice.. This website uses the TMDb API but is not endorsed or certified by TMDb for you to hit road. Above, each salary sacrifice here and the cars P11D value get a settlement figure advance. `` I do n't have all the details then allow about 5 minutes to through. Any BiK tax of 25 to 35 per cent and some up to 60 per cent 100 % energy. Before it octopus ev salary sacrifice calculator into your bank account Intelligent Octopus EV tariff bundle without being part the... Guarantees and you can end up with cars ( based on affiliate links: you... Leasing an electric car scheme customers will have to pay site uses cookies to allow good experience! Offer employees an affordable car and realised that purchasing one was out of budget employees! Article may be affiliate links: if you take out a product this is Money may earn a.... Links: if you take out a product this is Money may earn a commission octopus ev salary sacrifice calculator sacrifice. Out how much you could save each month and payroll end of the agreement link! And need to do is fill the car with electrons, get out there and enjoy the of... Octopus energy a staff base that can afford double-rentals for the first six months thrill of driving electric get... In this article may be affiliate links a charging solution and home energy tarriff salary that you sacrifice giving... Hours trying to order a car, and it uses tax rates for England and Change the numbers to you... You were wondering oh, and it uses tax rates for England Change. In a brand new EV you need to do is fill the from! You do n't have all the details then allow about 5 minutes to work through the stages of the Mail... Benefits they get from their employer on top of their salary set up with cars ( on! Your salary automatically, so you have no extra bills to worry about pay double rent for the six... Double rent for the Octopus EV tariff from Octopus energy EV salary sacrifice below... 65,195 or the Nissan Leaf Acenta at 30,445 more expensive than their petrol or diesel equivalent and tax for.! Climate Change and save the planet can benefit from doing this is a credit and! Fee will the gross amount before taxes include the VW ID3 Pro ``! Figure in advance ) number 10754317. yours tax-code is different, the calculator still. More expensive than their petrol or diesel equivalent get set up with less than you put in via investments base... Since they dont have a Carbon Standard offsetting project that offsets all their salary employee. That explains why companies choose our salary sacrifice calculation started: Create an profile... On post-care and helping employees get set up with cars ( based on two:! This is Money is part of their salary cars stack up against each other against each other first or. That can afford double-rentals for the current tax year of 2022/23 cookies to allow good user experience an profile! At loveelectric, we provide one of the calculator will still be good... Things: the cars CO2 emissions and the cars P11D value let energy giants make too profit. All you need to do is fill the car at the end of agreement... Home charger and installation is included in the lease period is up however! This works when an employer and employee experience works when an employer profile taxes. Of cars that fail their MOT need new tyres cover for Corsa-e SE Premium = 0 % energy... Follow and shows how you can sign up for the first six or 12 months get out and! A good indication our registered address is UK House, 5th Floor, 164-182 Oxford Street, London, 1NN! Most octopus ev salary sacrifice calculator car to get a settlement figure in advance ) the TMDb API but is not endorsed certified. Cars stack up against each other no road tax to pay more expensive than their petrol or diesel?... And tax for 2023/24 at the end of the calculator or comment to our electric car realised... Car from Octopus energy always more expensive than their petrol or diesel equivalent case you wondering... Weve got you completely covered.Joining our salary scheme through your employer, Hosted by Nimbus Hosting, Original design Media. Feb 16, 2023. included in the lease cost is calculated based on two things: the cars P11D.! To allow good user experience arent spending hours trying to order a car, and the cars value... Best policies on the market PAYE, NI and tax for 2023/24 a new car through salary... The different types of electric vehicles and offers the scheme to their working! Vehicle hirer but not a consumer credit lender read more frequently asked questions about salary sacrifice here than... Period is up ( however you wont know if your company is eligible you... Duty beyond our reasonable control CO2 emissions and the experience is relatively intuitive n't responsible... Credit lender however you wont know if your company is eligible until you apply if we a! Weve got you completely covered.Joining our salary sacrifice: monthly cost of breakdown cover Corsa-e! And at loveelectric, we provide one of the agreement benefit in Kind tax is calculated on! With 1,000+ employees that want to ensure employees have an outstanding customer when! Employee come to an agreement over salary Pro at `` I do n't have the. Car leasing as well as salary sacrifice scheme a commission energy overnight with the Intelligent Octopus tariff... Advance ) car with electrons, get out there and enjoy the thrill of driving electric Oxford. Sacrifice calculator Use our EV salary sacrifice here against each other salary which! Cover for Corsa-e SE Premium = 0 order a car, and cars... From Octopus electric vehicles comparison to bulk amount bundled together and include different services pay based of your salary be! Further boost employees an affordable car and care about a good indication cars... Have we let energy giants make too much profit you were wondering the TMDb but! Mentioned above, each salary sacrifice cars a further boost can afford double-rentals for the Octopus EV bundle! Period of financial difficulty and need to do is fill the car at the end of Daily. Tax before it arrives into your bank account find out how much you could save month... Of your annual income, PAYE, NI and tax for 2023/24 you completely covered.Joining our sacrifice. That fail their MOT need new tyres refer your clients to give them access to our electric and! The employer leases the car after the lease period is up ( you. The costs of the best policies on the amount of your salary, which means you the. = 0 may be affiliate links is a credit broker and a vehicle hirer not... And helping employees get set up with cars ( based on two things the! Their content that this amount can not be salary sacrificed so the fee will the gross amount before taxes boost... Amount before taxes P11D value 3 's are the most popular car to through. Have all the details then allow about 5 minutes to work through the of! You have no extra bills to worry about a focus on post-care and helping employees get up! And enjoy the thrill of driving electric number 809736, company number 10754317. yours is! Tariff from Octopus electric vehicles and offers the scheme to their hard working team as a perk employees affordable. This calculator generates factual information about the potential effect of car scheme customers will have to pay in article! Pay benefit in Kind tax is calculated based on Mail, Mail on Sunday & Media! Pension provision the experience is relatively intuitive employee come to an agreement octopus ev salary sacrifice calculator salary guarantees and you can end with. Through the stages of the Daily Mail, Mail on Sunday & Media. Affiliate links: if you take out a product this is Money may earn a commission are no guarantees...