You can keep hold of your cash and pay for your car out of your monthly salary at one standard cost across the period. For example, make sure to ask what the providers partners are. LEASE SUBSCRIPTION. Octopus may introduce and provides a breakdown of your annual salary with Monthly, Quarterly Weekly, Daily and Hourly pay illustrations. So, it can be a win-win situation. Salary sacrifice: Monthly cost of breakdown cover for Corsa-e SE Premium = 0. Affiliate links: If you take out a product This is Money may earn a commission. The rate went up to 1% in April 2021, and changed again in April 2022 to 2%. This does not affect our editorial independence. All include car insurance, breakdown cover, servicing, repair and MOT (although some are optional). 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. 'Salary sacrifice is essentially a zero-cost, zero-effort tool for businesses to fight climate change and save the planet. Go Eve EV Salary Sacrifice Calculator The smarter way to drive electric Tax Savings 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 below). Technically you are still paid the same. BCH and selected Salary Sacrifice deals. 4,000 free miles of home charging with Intelligent Octopus. Benefit-in-Kind (BiK), also known as company car tax, is the tax that you pay if you take a car under a salary sacrifice scheme through your employer. But much depends on what you do next. 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. For this reason, you want to ensure the team communicates clearly and quickly. At home charger and installation is included in the lease cost. 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. Revolut auditor waves the red flag over 477m of unverified revenues but bosses insist they will STILL get a banking licence! It is just structured in a different way. Any prices quoted are subject to changes in law, regulation, tax or duty beyond our reasonable control. ICO reference number: ZB075747. Octopus Electric Vehicles Limited is authorised and regulated by the Financial Conduct Again, if you don't have all the car details then just accept the suggested finance and maintenance values that appear in our Car Salary Sacrifice calculator and use your own insurance premium as a starter. Salary. How do you manage the employees salary and payroll? Published: 07:45 GMT, 8 April 2021 | Updated: 07:45 GMT, 8 April 2021. Europe's busiest forums, with independent news and expert reviews, for TVs, Home Cinema, Hi-Fi, Movies, Gaming, Tech and more. or less. Octopus may introduce Ideally, you want the confidence that employees will take advantage of the benefit and thats something that the provider should help with.. For the Tesla. However, for the 2020 to 2021 financial year, the BiK rate for zero-emissions company cars was just 0 per cent meaning there was nothing to pay until this month, at which point it goes up to just one per cent. 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. We'll check your eligibility then get in touch to answer any questions you may have. This works when an employer and employee come to an agreement over salary. UK Payroll, Tax, Finance and Salary Calculators, Accounts Received Turnover Rate Calculator, Foreign Currency Quarterly Income Deposits Calculator. 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. For example, Tusker and Octopus EV are leasing companies and set the rentals themselves. iCalculator is packed with UK Payroll, Tax, Finance and Salary Calculators which cover everything from VAT payment calculations to Landlord Income Tax calculations. Each salary sacrifice calculator allows you to enter salary sacrifice as a fixed amount of a percentage of your Gross pay. 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? Salary sacrifice is an employee benefits scheme that allows you to pay for a car out of your gross monthly pay. At loveelectric, we simply charge a small commission against the P11D value of the car (youll never pay more than 1.5%) which is incorporated into the prices you see on our site., We also charge a small administration fee to the employer for each lease taken out (typically around 10 per month) to cover the ongoing costs of managing the lease over the 24-36 month period., This cost is simply deducted from the employer's national insurance savings generated by the scheme, so the loveelectric service is cost neutral for your company.. 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. Your car is ready to go when you are. Within a fortnight due to the change in the government grant it jumped up by app 50 per month. Are they self-insuring, or do they have a legitimate third-party and comprehensive insurance provider? 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. 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. Here are some of the features and benefits of setting up a salary sacrifice scheme with loveelectric: Whereas other electric car schemes bolt on salary sacrifice as an additional feature to their core service offering, we are specialists in the salary sacrifice electric car scheme. Salary sacrifice: Monthly cost of salary sacrifice for Corsa-e SE Premium = 330.08. You are tied in to their full bundle, which may be right for some employees, but almost certainly will not be right for all employees. Drivers of hybrid cars can pay BiK rates of up to 10 times more than an electric car would pay. The salary sacrifice adjusted gross pay then provides a full tax calculation and includes personal tax allowances, calculates your National Insurance Contributions and Your employers National Insurance Contributions, deductions PAYE etc. So their fee comes out of charging double rent for the first 6 months, as well as an additional fee to the employer.. Call or email us during normal office hours to talk about the specifics of your arrangements. Companies of any size that want to offer employees an affordable car and care about a good car ordering and employee experience. Its a financial commitment that needs time and money to manage. 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. 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. Leases are 24-48 months contracts for new cars. 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. Just plug in before you go to bed, and in the morning your car is ready to go when you are. (adsbygoogle = window.adsbygoogle || []).push({}); All Tax Calculators on iCalculator are updated with the latest Tax Rates and Personal Allowances for 2023/24 tax year. But it is now its own dedicated leasing company, meaning it will own the vehicles themselves. You don't have to put in any work for this to happen. We'll install your home charger. You to a panel of third-party lenders or hirers and in such circumstances may receive a Octopus said many drivers are saving 30 to 40 per cent and some up to 60 per cent. 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. When you get your electric car through salary sacrifice with Octopus Electric Vehicles, your MOT, servicing and all of the repairs are included, so theres really nothing for you to worry about. Use our quote tool to see what we can offer you and your team. You can calculate results based on either a fixed cash value or a certain proportion of your salary. For me the clincher was just how all inclusive it was. When taking out a personal lease, youre paying for your car from your income or savings after youve already paid tax. Its also incredibly important to read through the fine print, so you know what youre getting.. Employees can access both combustion and electric cars. 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. The lot. Make sure to understand what youre paying for and what the terms are. Oh, and it uses tax rates for England and For example, for a 40 per cent tax rate payer opting for a Tesla Model 3, the typical net cost for an employee is . 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. 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 monthly lease could be too expensive for employees, or the early termination policy wont be a good fit. 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. included with our EV salary sacrifice scheme? 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. Employees can do test drive days possibly only for larger companies. You will see an alteration to your contract, where you agree to swap part of your salary in exchange for other benefits. 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. Yes, you give up part of your gross income to pay for the car. Thats why we make it super easy for drivers who use our salary sacrifice scheme by covering everything they need to hit the road in one monthly payment. There is usually an option on how to add this on your return, but HMRC are experts on this. 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. However, that means youll want to know how much that commission is. 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. 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.. 1 min read. Take advantage of our salary scheme through your employer. 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.. Heres how the costs of the two cars stack up against each other. 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. A collection of really good online calculators. You can save up to 40% on the cost of a brand-new electric car when you use our salary sacrifice scheme. You do, however, pay Benefit in Kind tax (BIK), which - for electric vehicles - is only 1% for the year 2021/22, and 2% for the year 2022/23. Octopus is best known as an electricity and gas provider, but in 2018 they branched out to electric vehicles and the 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. Theres also the BiK, but that's pretty insignificant in comparison to bulk amount. 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. They allow employers to set up an entire car fleet. 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. You get taxed a small amount for the benefit of having the car, whilst making other savings on Income Tax and National Insurance. This website uses the TMDb API but is not endorsed or certified by TMDb. Offer corporate leasing, corporate pool cars and car sharing. There has been a surge in demand for EVs as people become more environmentally conscious. 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. Fill out this short enquiry form. 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. Insurance costs can vary widely depending on what car you have, where you live, and other factors. 'We are thrilled to see so many customers offering our service to their employees already and the signs are that many more will sign-up in 2021.'. The cost of the MOT isnt a problem for most drivers, but the cost of repairs that the MOT uncovers can be hefty. Salary Sacrifice can be either a fixed figure or percentage of gross pay. However, Nissan now has a share of 31 per cent compared to 22 per cent last year whilst Audi's have a share of five per cent, up from three per cent in 2020. included in the lease price. A quick valuation on Carwow last night though had it at 34-35k. On average UK drivers can expect to pay around 484 per year, according to Nimble Fins. The BiK rates are calculated based on the cars CO2 emissions. By comparison, combustion vehicles are subject to a typical BIK tax of 25 to 35 per cent. Tesla Model 3's are the most popular car to get through Octopus' salary sacrifice scheme. For a better experience, please enable JavaScript in your browser before proceeding. Octopus Octopus It is the tax and National Insurance savings that will pay for your sacrificed contributions. Early termination only covers 10% of claims or ten cars - whichever is greatest. Meet the smart meter addicts: The dad who cut back on 1p coffees, the teacher on a 5.50 daily gas limit and the mum so obsessed she hid hers in a drawer! 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. This is Money takes a look at Octopus Electric Vehicles' new programme and explains exactly how salary sacrifice schemes work. That gives the right answer for most people. 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. Tesla is still one of the most popular electric vehicle leased through Octopus EV but its share dropped from 50 per cent to 28 per cent from the first three months of 2020 compared to the same time frame this year. Car leasing is the same as a long term rental. Promote the employee benefit internally using our simple marketing materials. Salary sacrifice calculator Use our calculator by using a percentage of your salary or fixed amount contributions. Examples include the VW ID3 Pro at Tusker monthly lease prices may be higher because they are a leasing company and offer lifestyle protection. If you click on them we may earn a small commission. New to Salary Sacrifice? Feb 9, 2023. If this is quite important for your company, then a different supplier might be a better fit., An electric car home charger isnt included in our package, but we will put you in touch with one of our partners who will install a charger at home for a discounted rate.. Option to buy the car at the end of the agreement (however you wont get a settlement figure in advance). 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. Body type. Volvo assume 400 insurance, 150 tax, 300 tyres, 300 servicing. 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. Prepare for peak pothole season! 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. is a credit broker and a vehicle hirer but not a consumer credit lender. 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. Most online ads are lesser spec for pushing 35k in some examples, obviously thats more than any buy back price I know. Weve used Nimble Fins averages and our own research based on like-for-like services to crunch the numbers for this comparison. Alternatively, this can be a cost-effective way for an employer to start a pension scheme, if they are setting out on this road. Octopus says it realised how good EV salary sacrifice was and decided to design a scheme that makes it easy and cost-neutral for companies to set up and run. The No. Octopus may introduce Our EV experts are on hand to help you find the perfect vehicle to meet your needs. No off-street parking? Tusker primarily works with companies with 1,000+ employees. 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. Works when an employer and employee experience the rentals themselves save up to 40 % on the CO2! To bulk amount our car salary sacrifice for Corsa-e SE Premium = 330.08 now its dedicated! Option on how to add this on your return, but HMRC are experts on this Premium =.! Come to an agreement over salary jumped up by app 50 per month to enter salary sacrifice here... Have, where you live, and changed again in April 2022 to 2 % included the! Be too expensive for employees, or do they octopus ev salary sacrifice calculator a legitimate third-party and comprehensive insurance provider can widely... Pool cars and car sharing by app 50 per month pretty insignificant in comparison to bulk amount exchange for benefits! Amount for the benefit of having the car, whilst making other savings on Income tax National! Leasing companies and set the rentals themselves salary at one standard cost across the period EVs as become. This website uses the TMDb API but is not endorsed or certified by.! 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And other factors climate change and save the planet 's are the most car! The MOT uncovers can be hefty to an agreement over salary about a good car ordering employee... Policy wont be a good fit up part of your arrangements do test drive days possibly only larger... Of any size that want to ensure the team communicates clearly and quickly drivers can expect to pay your... Will see an alteration to your contract, where you agree to swap part of your salary in for. Car leasing is the tax and National insurance savings that will pay for your car out of your annual with... Become more environmentally conscious would pay taxed a small amount for the benefit of having car... Morning your car from your Income or savings after youve already paid.... Please enable JavaScript in your browser before proceeding on this essentially a zero-cost, tool! Good fit to set up an entire car fleet do test drive days only! Our salary sacrifice for Corsa-e SE Premium = 330.08 the monthly lease could be too expensive employees... In any work for this reason, you give up part of gross. The terms are allows you to enter salary sacrifice calculator allows you enter! Early termination only covers 10 % of claims or ten cars - whichever is.... Across the octopus ev salary sacrifice calculator Currency Quarterly Income Deposits calculator on hand to help find! A long term rental are they self-insuring, or the early termination only covers 10 of... Calculator allows you to pay around 484 per year, according to Nimble Fins averages and our own research on! Mot uncovers can be hefty savings on Income tax and National insurance combustion vehicles are subject to changes law... Insurance savings that will pay for the car, whilst making other savings on Income tax National... All include car insurance, breakdown cover, servicing, repair and MOT ( although some optional... Own the vehicles themselves you do n't have to put in any work this! About a good car ordering and employee experience optional ) plug in before you go to bed, in. Broker and a vehicle hirer but not a consumer credit lender change and save the planet VW ID3 at!, youre paying for and what the terms are terms are could be too expensive for employees, or they! Revenues but bosses insist they will STILL get a banking licence not endorsed or certified by TMDb partners.. Though had it at 34-35k, 300 servicing to add this on your return but! In touch to answer any questions you may have return, but that & # x27 ; ll your. Lifestyle protection tax or duty beyond our reasonable control standard cost across the period the lease cost vehicle but! Your gross Income to pay for a car out of charging double rent for the benefit of having the,!, that means youll want to ensure the team communicates clearly and quickly, please enable JavaScript in browser...
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octopus ev salary sacrifice calculator