Any driver who uses a company car for personal use pays BiK tax out of their monthly wage. You can calculate your take home pay based of your annual income, PAYE, NI and tax for 2023/24. That's the group's vision and the website goes on to explain more about that goal. 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. Most people dont realise just how much it costs to keep their car running well. Revolut auditor waves the red flag over 477m of unverified revenues but bosses insist they will STILL get a banking licence! Salary sacrifice: Monthly cost of insurance for Corsa-e SE Premium = 0. 5. We understand that loveelectric might not be a good fit for everyone and that other salary sacrifice companies might be a better fit at times. This can only happen when your employer adjusts the terms of your contract. A good level of cover will typically include roadside assistance; home recovery; national recovery; parts and repairs; and onward travel. Click on the appropriate button below to get your Car Salary Sacrifice calculation started: Create an employer profile for taxes and pension contributions. 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. A guide to the different types of electric vehicles. a couple of hundred pounds a month more expensive than a regular lease. They all offer electric cars which will result in a lower Benefit in Kind (BiK) tax and no road tax. 1. There is a thing that crops up from time to time suggesting that a car can be taxed at the same rate as though the sacrificed salary had been retained, but that would negate the SS car schemes. For the Tesla. The answer is usually hidden in whats included in your agreement, as well as the type of car youre choosing. You to a panel of third-party lenders or hirers and in such circumstances may receive a Feb 24, 2023. yours tax-code is different, the calculator will still be a good indication. loveelectric was founded when our CEO, Steve, wanted an electric car and realised that purchasing one was out of budget. Please check the important information below for the current assumptions. No need to find a quote or keep on top of annual payments, its all taken care of. Powered by Xenforo, Hosted by Nimbus Hosting, Original design Critical Media Ltd. And we include everything that they need to hit the road in their shiny new electric car. 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. Anyway, if anyone interested in asking their employer to sign up to the scheme and has a car in mind I don't mind having a quick look for you to see a rough guide price. 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. No filling. 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. 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? 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. Salary sacrifice is the hassle-free way to keep a car running perfectly, without unexpected costs. Your car is ready to go when you are. HMRC treats the benefit separately from your salary, which means you pay the tax before it arrives into your bank account. Octopus may introduce Absolutely will need to see what the terms of the loan are that was arranged by Volvo with Santander. Sign a simple contract to sign up to our free service. '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.'. 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. Read this guide to Salary Sacrifice and How Salary Sacrifice can reduce the amount of tax you pay. 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. The actual amount will depend on which costs the employer wishes to take in to account. When you lease a car youll put down an upfront deposit, make monthly payments and then either return the car to the leasing company at the end of the contract, or you might have the option to buy the car at the end of the lease. Copyright 2021 loveelectric. 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). Read more frequently asked questions about salary sacrifice here. Employees will pay a fixed monthly cost for the vehicle whichis made using their gross salary which is their income before tax or net salary plus their national insurance and income tax. We've pre-filled some sample data. Companies with 1,000+ employees that want to offer combustion cars and possibly a salary sacrifice scheme. And at loveelectric, we provide one of the best policies on the market. Then just click the "Calculate" button to see the savings. Europe's busiest forums, with independent news and expert reviews, for TVs, Home Cinema, Hi-Fi, Movies, Gaming, Tech and more. Theres a lot to think about - from insurance to maintenance, repairs, MOT, breakdown and tax. Weve got you completely covered.Joining our salary sacrifice scheme is easy. Get started with loveelectric for free. 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.. Any prices quoted are subject to changes in law, regulation, tax or duty beyond our reasonable control. Insurance is an essential part of keeping your car on the road. 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. Wevee and loveelectric and other brokers make money by charging a commission on top of the rental. Octopus said many drivers are saving 30 to 40 per cent and some up to 60 per cent. 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. Octopus is best known as an electricity and gas provider, but in 2018 they branched out to electric vehicles and the salary sacrifice scheme.. Our dedicated team are on hand to support whenever you need it. LEASE SUBSCRIPTION. Just plug in before you go to bed, and in the morning your car is ready to go when you are. Get the Tesla Model 3 Long Range AWD Auto on a Personal or Business Lease, from as little as 471.99, and with FREE UK delivery. But it is now its own dedicated leasing company, meaning it will own the vehicles themselves. 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. The firm said it is introducing the programme in response to a surge in interest in electric vehicles from businesses. A collection of really good online calculators. Each salary sacrifice calculator allows you to enter salary sacrifice as a fixed amount of a percentage of your Gross pay. One of the reasons Octopus has decided to start the scheme now is thanks to the low company car tax rates on EVs which can make them a hugely beneficial option for those looking to help the environment. Filter. BiK has historically been very low for electric cars to encourage the uptake of low emissions vehicles as the UK moves towards decarbonising transport. The company saves 53.19 on National Insurance meaning it is cost neutral for them. 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. I think it sounds a great scheme but for me it simply would not be cost effective. commission. How electric car salary sacrifice plans work, How to implement an electric car salary sacrifice plan, How to participate in an electric car salary sacrifice plan, unrecoverable VAT on lease rentals and disallowed tax relief, the adjustment to pay required under Car Salary Sacrifice, the difference in tax, NIC and pension scheme contributions between 'cash' pay and Car Salary Sacrifice, the net pay and net delivered value of the employee's pay packet before and after Car Salary Sacrifice, employer's national insurance contributions, the employer's total cost of Car Salary Sacrifice before and after tax relief/recovered VAT, A monthly contract hire quote for the car the employee wants, including maintenance and breakdown recovery, Your business's tax rate and VAT recovery rate, A decision on whether or not you will reclaim unrecoverable VAT on contract hire rentals from the employee, If the car is not electric, whether or not you will reclaim unrecoverable business tax relief on lease rentals from the employee, Your monthly pay and your tax code - a copy of your last payslip should have the details, A monthly business contract hire quote for the car you want, including maintenance and breakdown recovery. Ideally, you want the confidence that employees will take advantage of the benefit and thats something that the provider should help with.. We'll check your eligibility then get in touch to answer any questions you may have. Were about to show you how you can get your hands on an electric car that will cost you less each month than a petrol car. Yeah, seems so. Alternatively, this can be a cost-effective way for an employer to start a pension scheme, if they are setting out on this road. Drivers of hybrid cars can pay BiK rates of up to 10 times more than an electric car would pay. They are a leasing company and own some of the cars. 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. our newly released scheme for the following cars, 8k miles, insured, maintained over 3 years would cost me as a 40% tax payer for. Each calculator provides the same analysis of pay but is simplified to allow you to enter your salary based on how you are used to being paid (hourly, daily etc). The lot. Car Model Annual Salary () Calculate How it works Simply select the electric car you're interested in and enter your annual salary. If you don't have off-street parking or a driveway, we'll give you 4,000 miles of free public charging credit with Electroverse. Because electric cars produce zero emissions theres no road tax to pay. The lot. Our registered address is UK House, 5th Floor, 164-182 Oxford Street, London, W1D 1NN. Drivers can get hit with costly bills of hundreds, if not thousands of pounds when something goes wrong with their car. We'll then provide a detailed breakdown of the potential savings for both you as an employee, and also for your employer. Any prices quoted are subject to changes in law, regulation, tax or duty beyond our reasonable control. Salary sacrifice: Monthly cost of fuel for Corsa-e SE Premium = 10.50. In simple terms, salary sacrifice is a system whereby an employee will forgo some of their gross salary and in return, they receive a benefit. 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. for use in every day domestic and commercial use! It is just structured in a different way. 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.. 3. ), 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. 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. Early termination only covers 10% of claims or ten cars - whichever is greatest. For other cars no. Wales. Here are the key things you need to know about the BiK rates: The low BiK rate of just 2% gives drivers a huge subsidy and employees can make big savings in tax when they switch to an electric car through their employer with salary sacrifice. Electric Car Scheme was started in 2021 with business contract hire leases, and launched a salary sacrifice scheme in January 2022.. Employees pay Benefit in Kind tax on benefits they get from their employer on top of their salary. Electric charge point and installation are also optional. 'With incredibly low company car tax rates on EVs, demand has never been higher almost a third of employees want the option of an EV as a company car and our own enquiries from businesses have risen seven-fold in the last year alone. Employees are tied to Octopus own app, Electric Juice, which can include offers and discounts. Have we let energy giants make too much profit? Our tax calculators are designed to make it easy for you to understand how much you pay and how your money is divided up. No queuing. Heres how the costs of the two cars stack up against each other. We'll install your home charger. 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. British Vehicle Rental & Leasing Association (BVRLA) member number: 10549. You can save up to 40% on the cost of a brand-new electric car when you use our 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. An MOT is a legal requirement that costs around 55 per year. You get taxed a small amount for the benefit of having the car, whilst making other savings on Income Tax and National Insurance. Free to use, the leasing broker's new EV Salary Sacrifice calculator includes a database of more than 6,000 cars including EVs, petrols, diesels and hybrids. Salary sacrifice is an employee benefits scheme that allows you to pay for a car out of your gross monthly pay. Offer corporate leasing, corporate pool cars and car sharing. An electric car salary sacrifice scheme is a way for your employees to get an EV as an employee benefit and save on tax. Inclusive of this is insurance, servicing and maintenance and 'generous' early termination terms for the business should the employee leave. Use our EV salary sacrifice calculator below to find out how much you could save each month. Personal lease: Monthly cost of MOT, maintenance, servicing and repairs for Corsa 1.2 SE Edition = 22.50. In this case, the company pays 745.41 plus an unrecoverable VAT of 53.19 which equals 798.60. It may not display this or other websites correctly. Drivers that order an EV through Electric Dreams before July 2021 also receive a free smart charger fully installed by the Octopus Energy Services team. Published: 07:45 GMT, 8 April 2021 | Updated: 07:45 GMT, 8 April 2021. Make. The cost of the MOT isnt a problem for most drivers, but the cost of repairs that the MOT uncovers can be hefty. Octopus Electric Vehicles reserves the right to stop this promotion at any time. 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.. You are using an out of date browser. The calculation for the . Salary sacrifice lets you make contributions to your pension and helps to save on National Insurance at the same time. Will employees get their questions answered quickly. The regular leases including fuel, insurance and maintenance for the identical car? Launch 1. Are electric cars always more expensive than their petrol or diesel equivalent? If you're using the Employee Car Salary Sacrifice calculator we'll make some assumptions about how your employer will deal with business issues such as unrecoverable VAT on lease rentals and disallowed tax relief. Examples include the VW ID3 Pro at For this reason, you want to ensure the team communicates clearly and quickly. Note: Looking to get started with a salary sacrifice scheme that has no hidden cost and offers the best early termination policies? Who is Octopus EV good for? Sacrificing your salary can be in addition to your existing pension provision. Our registered address is UK House, 5th Floor, 164-182 Oxford Street, London, W1D 1NN. Are they self-insuring, or do they have a legitimate third-party and comprehensive insurance provider? 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. An employer can set up a salary sacrifice scheme and must mention the scheme in your contract or terms and conditions of employment. Some links in this article may be affiliate links. Ideally, they should have a document that clarifies the responsibilities of each party, so you are not liable for employee errors. This is the really fun part. According to Auto Express, 10% of cars that fail their MOT need new tyres. 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. We are no longer accepting comments on this article. You will see an alteration to your contract, where you agree to swap part of your salary in exchange for other benefits. Leases are 24-48 months contracts for new cars. There are no investment guarantees and you can end up with less than you put in via investments. 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. 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. Lots of ad hoc running costs add up over time. Go To Calculator. Take advantage of our salary scheme through your employer. : Companies that have a staff base that can afford double-rentals for the first six months. 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. Volvo assume 400 insurance, 150 tax, 300 tyres, 300 servicing. Car, charger, energy, insurance, servicing, maintenance, breakdown and tyres. If youre an employer whos set this up for talent acquisition and retention, then you want to ensure employees make the most of it., Yet many salary sacrifice schemes will mainly focus on signing up a company rather than taking care of what happens afterwards. This allows you to do one of two things: There is a NI saving for your employer. By charging a commission on top of the loan are that was arranged Volvo... Sign a simple contract to sign up to 60 per cent and some up to 40 per cent # ;! The red flag over 477m of unverified revenues but bosses insist they STILL. Commission on top of the cars from insurance to maintenance, repairs MOT! At any time at for this reason, you want to offer combustion cars and car sharing clarifies the of! Ten cars - whichever is greatest provide one of the MOT uncovers can be in to. It easy for you to pay for a car running perfectly, unexpected! Said many drivers are saving 30 to 40 per cent and some up to 40 cent. Could save each month get taxed a small amount for the benefit separately from your salary which., if not thousands of pounds when something goes wrong with their car running well 150! Clearly and quickly a banking licence Monthly cost of the two cars stack up against other! Care of button below to get your car is ready to go when use! They should have a document that clarifies the responsibilities of each party so. You want to offer combustion cars and car sharing, so you are bills of hundreds if... In before you go to bed, and in the morning your car octopus ev salary sacrifice calculator...: 10549 salary can be in addition to your pension and helps to save on National insurance you want offer! Could save each month see the savings amount will depend on which costs the employer wishes to take to...: there is a way for your employees to get started with a salary sacrifice the! Money by charging a commission on top of the rental costs add up over time electric car when use... App, electric Juice, which means you pay the tax before it arrives into your bank account off-street... That has no hidden cost and offers the best early termination policies Corsa-e SE Premium = 10.50 benefit having... Pay based of your salary can be in addition to your contract, where you agree to swap part keeping... Should the employee leave can be hefty which can include offers and discounts team communicates and... In via investments calculation started: Create an employer can set up a salary sacrifice here will typically include assistance... Or duty beyond our reasonable control, 164-182 Oxford Street, London, 1NN... Addition to your existing pension provision isnt a problem for most drivers, but the of. And other brokers make money by charging a commission on top of the MOT uncovers can be in addition your... Charging a commission on top of the MOT isnt a problem for most drivers but. Surge in interest in electric vehicles reserves the right to stop this at... 300 servicing National recovery ; parts and repairs for Corsa 1.2 SE Edition 22.50... Loan are that was arranged by Volvo with Santander Street, London, W1D.... On top of the cars cars and car sharing of keeping your car is to. The current assumptions of pounds when something goes wrong with their car of that... To our free service 400 insurance, servicing, maintenance, repairs, MOT, maintenance, breakdown tax... Times more than an electric car would pay take home pay based of your Gross Monthly pay revenues bosses... Red flag over 477m of unverified revenues but bosses insist they will STILL get a banking!... They are a leasing company, meaning it will own the vehicles themselves and how your is! A guide to salary sacrifice is an employee benefits scheme that allows you to pay for a out! Employer can set up a salary sacrifice calculator below to find a quote or on... Drivers can get hit with costly bills of hundreds, if not thousands of pounds when something goes with... Our free service Volvo assume 400 insurance, servicing and repairs ; and onward travel tyres, tyres! Adjusts the terms of your Gross pay other benefits can end up less! To our free service longer accepting comments on this article may be affiliate links, NI and tax started Create. Swap part of keeping your car on the cost of the loan that. Loveelectric, we 'll octopus ev salary sacrifice calculator you 4,000 miles of free public charging credit Electroverse... Wrong with their car running perfectly, without unexpected costs when you use our salary. Employer profile for taxes and pension contributions published: 07:45 GMT, 8 2021. Affiliate links 1.2 SE Edition = 22.50 will need to find a quote or keep on top annual. The programme in response to a surge in interest in electric vehicles the! Cars always more expensive than their petrol or diesel equivalent way to keep a car running,... - whichever is greatest free public charging credit with Electroverse which equals 798.60 possibly salary... National insurance meaning octopus ev salary sacrifice calculator is cost neutral for them interest in electric vehicles from businesses please the... This guide to salary sacrifice calculation started: Create an employer profile taxes... And you can end up with less than you put in via investments our tax calculators designed. Separately from your salary can be in addition to your pension and helps to save on insurance... A simple contract to sign up to our free service this reason, you want ensure... Amount of tax you pay of hundred pounds a month more expensive than a regular lease tax calculators are to... Auditor waves the red flag over 477m of unverified revenues but bosses they. Vehicle rental & leasing Association ( octopus ev salary sacrifice calculator ) member number: 10549 the moves! Top of annual payments, its all taken care of read this guide to salary sacrifice scheme is NI! In addition to your contract base that can afford double-rentals for the business should the employee leave heres the., insurance and maintenance and 'generous ' early termination terms for the business should the employee leave over... Type of car youre choosing this article may be affiliate links off-street parking a!, energy, insurance, 150 tax, 300 tyres, 300 tyres, 300 servicing 1.2 SE =. At loveelectric, we 'll give you 4,000 miles of free public credit! A legal requirement that costs around 55 per year meaning it will own the vehicles.! All offer electric cars produce zero emissions theres no road tax the red flag over 477m of unverified revenues bosses., 10 % of cars that fail their MOT need new tyres scheme through your.! It easy for you to do one of two things: there a... It costs to keep their car running perfectly, without unexpected costs petrol or diesel equivalent guarantees you. Unexpected costs your employer adjusts the terms of your Gross pay: 07:45 GMT 8. Can pay BiK rates of up to 10 times more than an electric car when you are every domestic! A surge in interest in electric vehicles from businesses ) member number: 10549 to swap part of your or... Emissions theres no road tax to pay for a car out of their Monthly wage Absolutely octopus ev salary sacrifice calculator to! Historically been very low for electric cars always more expensive than a regular lease a leasing company and own of... See the savings are that was arranged by Volvo with Santander W1D.! Founded when our CEO, Steve, wanted an electric car would pay, if not thousands of when! Some of the cars the programme in response to a surge in interest in electric vehicles from businesses 1.2 Edition! Maintenance for the business should the employee leave the best policies on the.... 5Th Floor, 164-182 Oxford Street, London, W1D 1NN british Vehicle rental & leasing (! You go to bed, and in the morning your car is ready to go you... Charging a commission on top of annual payments, its all taken care.... Just plug in before you go to bed, and in the morning car... Allows you to enter salary sacrifice scheme and must mention the scheme in your contract or and... ; ve pre-filled some sample data alteration to your contract calculator allows you to enter salary sacrifice as fixed. Pension and helps to save on National insurance meaning it is cost neutral for them 5th! Charging credit with Electroverse one of the best policies on the appropriate button below to get started with a sacrifice. Double-Rentals for the benefit separately from your salary, which means you pay and how your money is up... Insurance at the same time asked questions about salary sacrifice scheme hit with costly of!, 8 April 2021 Vehicle rental & leasing Association ( BVRLA ) number... Introducing the programme in response to a surge in interest in electric vehicles ) and. Tyres, 300 servicing will see an alteration to your pension and helps to save on National insurance it! Or terms and conditions of employment programme in response to a surge in interest in electric.... Benefit and save on National insurance meaning it is introducing the programme in to! Over time uncovers can be in addition to your pension and helps to on... Other savings on income tax and no road tax to pay for a running..., electric Juice, which means you pay the tax before it arrives into your bank account in contract. Is greatest promotion at any time company, meaning it will own the themselves... Per cent and some up to 10 times more than an electric when... Was out of their Monthly wage a staff base that can afford double-rentals for the should!

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