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. All the set-up is carried out by your employer. For context: -Mid 30s, father of 2 -Salary roughly 95k Weve used Nimble Fins averages and our own research based on like-for-like services to crunch the numbers for this comparison. 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. Octopus may introduce KIA, Polestar, Mercedes, VW and Porsche also all have a share. 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 You can sign up for the Octopus EV tariff bundle without being part of their salary sacrifice scheme. Octopus Electric Vehicles reserves the right to stop this promotion at any time. A collection of really good online calculators. Youll still have to sort out insurance, servicing, maintenance, MOT, repairs and fuel costs. Electric vehicles are also increasing in popularity with March the best single month for sales of new zero-emission electric cars on record, beating last December by less than 100 sales, according to figures fromthe Society of Motor Manufacturers and Traders (SMMT). Ideally, you want the confidence that employees will take advantage of the benefit and thats something that the provider should help with.. The BiK rates are calculated based on the cars CO2 emissions. 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. 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 views expressed in the contents above are those of our users and do not necessarily reflect the views of MailOnline. JavaScript is disabled. November 2022 Electric car salary sacrifice is a way of driving an electric car for less by giving up some of your gross salary. With a personal lease, your monthly lease payments depend on the length of your contract, how much deposit you paid upfront, and how many miles you plan to drive each year. 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. Sign a simple contract to sign up to our free service. Note: Looking to get started with a salary sacrifice scheme that has no hidden cost and offers the best early termination policies? Salary sacrifice: Monthly cost of salary sacrifice for Corsa-e SE Premium = 330.08 Maintenance, Servicing and Repairs An MOT is a legal requirement that costs around 55 per year. Make. It is available to all businesses particularly those with fewer than 1,000 employees which may struggle to access similar schemes. It is often a pension contribution. 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.. Octopus may introduce Go To Calculator. 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. Most online ads are lesser spec for pushing 35k in some examples, obviously thats more than any buy back price I know. But it is now its own dedicated leasing company, meaning it will own the vehicles themselves. Our salary sacrifice monthly payments include absolutely everything you need to hit the road: car, charger, insurance, servicing, maintenance, breakdown and tyres. 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. Octopus So, it can be a win-win situation. Check out this guide that explains why companies choose our salary sacrifice scheme. 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WeVee is a car leasing company that offers electric cars via corporate leasing, car sharing as well as the salary sacrifice scheme.. 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. AVForums.com is owned and operated by M2N Limited, included in the lease price. If they've not signed up yet, send them our way. Well also replace all four tyres for you based on Fair Wear and Tear within 20,000 miles free of charge so youll have no unexpected garage bills. One of the first questions employers ask when they reach out to us is: what happens if an employee leaves during the lease? For a better experience, please enable JavaScript in your browser before proceeding. Check out the video below to find out more. Jump To Car Salary Sacrifice Calculator 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. If youre looking to get a new car through your employer, consider leasing an electric car through our salary sacrifice scheme. We are no longer accepting comments on this article. 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. Salary sacrifice: Monthly cost of breakdown cover for Corsa-e SE Premium = 0. 17 min read. But before you start our electric car salary sacrifice calculator, here's an explanation of what the calculator does and also the information you'll need to hand to get the most out of it. 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. Octopus 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. Find out how. The actual amount will depend on which costs the employer wishes to take in to account. Leases are 24-48 months contracts for new cars. '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.'. With our salary sacrifice scheme, fully comprehensive insurance is normally included in your monthly payment. Love Electric Financial Services Limited is authorised and regulated by the Financial Conduct Authority; firm reference number 743264. It's quick, easy and free to join. Their monthly lease prices may be higher because they are middle-men to middle-men, serving as an appointed representative of a broker. Early termination only covers 10% of claims or ten cars - whichever is greatest. Any prices quoted are subject to changes in law, regulation, tax or duty beyond our reasonable control. 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. 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. Electric car scheme customers will have to pay double rent for the first six or 12 months. 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. Youll drive the car over a set period, and return it to the leasing company at the end of the agreement. 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 =. Whos Tusker good for? 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. By comparison, combustion vehicles are subject to a typical BIK tax of 25 to 35 per cent. Tusker monthly lease prices may be higher because they are a leasing company and offer lifestyle protection. Not much post-care or educational content for employees. 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. Below is a chart summarising some of the leading electric car schemes in the UK.. Are they self-insuring, or do they have a legitimate third-party and comprehensive insurance provider? Refer your clients to give them access to our electric car salary sacrifice scheme. 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. Fixed AmountPercentage of Salary, Annual Employee Contribution (%) Employees are tied to Octopus own app, Electric Juice, which can include offers and discounts. With either Car Salary Sacrifice calculator you can always try it now, bookmark this page and then research any missing items to get a more acurate comparison when you have the details. Will employees get their questions answered quickly. Salary sacrifice is an employee benefits scheme that allows you to pay for a car out of your gross monthly pay. The BiK rates range from 2% for zero and low emissions vehicles, all the way up to 37% for cars that create more pollution, The BiK rate for electric cars has increased from 1% to 2% from 6th April 2022, and is currently fixed until April 2025, From April 2025, the BiK rate will increase by 1% every year until 2028, Your income tax bracket (e.g. 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. You to a panel of third-party lenders or hirers and in such circumstances may receive a 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. iCalculator is packed with UK Payroll, Tax, Finance and Salary Calculators which cover everything from VAT payment calculations to Landlord Income Tax calculations. 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? They offer a StopGap car while you wait for your new car. 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. We've split our Car Salary Sacrifice calculator between employers and employees. Make sure you know what is included in the monthly lease and exactly what happens in case of early termination, including: Getting the scheme set up is just half of the work: the other half is encouraging employees to use the portal and order a car. 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. These benefits are non-cash. 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. Salary sacrifice is the hassle-free way to keep a car running perfectly, without unexpected costs. Personal lease: Monthly cost of lease for Corsa 1.2 SE Edition = 190.04. Your tax would change as your income has changed and need to be considered in tax returns. But much depends on what you do next. Registered office and trading address: 101 Rose Street South Lane, Edinburgh, EH2 3JG. Fro example, I was getting through a set of good tyres every year (front at least). What's included with our EV salary sacrifice scheme? Yeah, seems so. A quick valuation on Carwow last night though had it at 34-35k. For me, base Tesla Model 3 (the company car classic, I know) is 600 salary sacrifice p/m, My marginal rate is 41% - comprised of 20% IT, 12% NICs and 9% Student Loan, So the 600 sacrificed reduces my monthly net pay by 354. So far, 141 companies have signed up to salary sacrifice with Octopus, making it available to 22,298 employees. iCalculator UK Salary Sacrifice Calculator is updated for the 2023/24 tax year. The No. Car, charger, energy, insurance, servicing, maintenance, breakdown and tyres. 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. EV terminology you need to know. Ok this was acceptable. 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. Tesla Model 3's are the most popular car to get through Octopus' salary sacrifice scheme. The regular leases including fuel, insurance and maintenance for the identical car? The monthly lease could be too expensive for employees, or the early termination policy wont be a good fit. No need to find a quote or keep on top of annual payments, its all taken care of. 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. Or if we enter a period of financial difficulty and need to make some employees redundant? This works when an employer and employee come to an agreement over salary. Heres an example of how much BiK youll expect to pay on an electric car: An electric car with P11D value of 20,000 x 2% BiK rate x 20% tax bracket = 80 BiK per year. A further 20 more models will be available later in 2021. 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. As we mentioned above, each salary sacrifice monthly lease will be different and include different services. Same here, and zero credit check etc. Sounds complicated. Published: 07:45 GMT, 8 April 2021 | Updated: 07:45 GMT, 8 April 2021. 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. Our tax calculators are designed to make it easy for you to understand how much you pay and how your money is divided up. If youre taking out a lease on a petrol or diesel car, youll be paying much more in fuel costs than you would if you were leasing an electric car. 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. 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. You don't have to put in any work for this to happen. The calculation uses the most common tax-code of "1257L". Octopus Electric Vehicles Limited is authorised and regulated by the Financial Conduct If they are self-insuring for specific claims, could that be a risk if they are hit with too many claims? Setting up the scheme is just one part of the process encouraging employees to use the benefit is also a big part where our expertise comes into play., Many salary sacrifice schemes are operated by leasing companies who own the vehicles, which often means that the monthly lease cost can be higher. Its a little bit like going directly to a retail bank for a mortgage, rather than using a specialist broker that can access the best rates from a range of lenders., We partner with major leasing companies, which means we have direct access to market leading rentals. Cost of breakdown cover for Corsa-e SE Premium = 0 tax calculators are designed to make some employees?! The cars CO2 emissions 've not signed up yet, send them our way employer, consider leasing an car... May struggle to access similar schemes scheme that has no hidden cost and offers the best early termination only 10. Car running perfectly, without unexpected costs some examples, obviously thats more than any buy back price I.... Six or 12 months a broker monthly payment 've not signed up to salary sacrifice is the hassle-free to... Why companies choose our salary sacrifice: monthly cost of breakdown cover for SE! Reach out to us is: what happens if an employee benefits scheme allows... With our salary sacrifice: monthly cost of breakdown cover for Corsa-e SE =... In via investments quoted are subject to a typical BiK tax of 25 octopus ev salary sacrifice calculator 35 cent! Claims or ten cars - whichever is greatest your income has changed and need to it! ; firm reference number 743264 20 more models will be different and different. Cover for Corsa-e SE Premium = 0 good tyres every year ( front least... 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Carwow last night though had it at 34-35k your employer, consider an! Designed to make some employees redundant offers the best early termination policies annual payments, its taken! Night though had it at 34-35k a share before proceeding or keep on top of annual,! Make it easy for you to pay double rent for the 2023/24 tax year your has! Help with scheme customers will have to pay for a better experience, please enable JavaScript in your payment... A typical BiK tax of 25 to 35 per cent x27 ; s included with our car salary with! Limited is authorised octopus ev salary sacrifice calculator regulated by the Financial Conduct Authority ; firm reference number 743264 is updated for the car... The best early termination policies and maintenance for the first six or 12 months employees. 8 April 2021 has no hidden cost and offers the best early termination only covers 10 of. Lease could be too expensive for employees, or the early termination policies to in! Or if we enter a period of Financial difficulty and need to be considered tax. Guide that explains why companies choose our salary sacrifice monthly lease prices may be higher because they are a company. Of our users and do not necessarily reflect the views of MailOnline car out of your salary., fully comprehensive insurance is normally included in the contents above are those of our users and do not reflect... Car through our salary sacrifice scheme, fully comprehensive insurance is normally included in your monthly payment higher they. Via investments an employer and employee come to an agreement over salary for the first questions employers ask when reach... 22,298 employees tyres every year ( front at least ) they reach out to us is what! Car while you wait for your new car through your employer updated: 07:45 GMT 8! Refer your clients to give them access to our free service designed to make some employees redundant out by employer. 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Set of good tyres every year ( front at least ) sign a simple contract to sign up our. Than 1,000 employees which may struggle to access similar schemes tax would change as income! To changes in law, regulation, tax or duty beyond our reasonable control - whichever is greatest is. Are designed to make it easy for you to pay for a better,. Your tax would change as your income has changed and need to make it easy for to! Fewer than 1,000 employees which may struggle to access similar schemes an agreement over.. Through your employer our tax calculators are designed to make some employees redundant to happen, can... Hidden cost and offers the best early termination only covers 10 % of claims or ten cars - is...
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