They may choose to add this to your pension contributions, giving a further boost. All the set-up is carried out by your employer. Salary sacrifice. 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. British Vehicle Rental & Leasing Association (BVRLA) member number: 10549. Fixed AmountPercentage of Salary. This means your net pay will go down by the amount you pay for the car, minus your tax savings. This has been updated for the current tax year of 2022/23. If you don't have all the details then allow about 5 minutes to work through the stages of the calculator. Salary sacrifice lets you make contributions to your pension and helps to save on National Insurance at the same time. AIUI, the EV is then subject to 1% / 2% BIK until the end of tax year 2024/25 and anything could happen after that. What will the onboarding experience be like for the employee? Click on the appropriate button below to get your Car Salary Sacrifice calculation started: Create an employer profile for taxes and pension contributions. It's quick, easy and free to join. 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. It provides everything businesses and employees need to go electric in one place including EVs, home and workplace chargers, smart energy tariffs to keep bills low, and impartial expert advice on going electric. Then it might be a sign that they dont have high standards or simply dont fully understand the complexity of an EV salary sacrifice scheme. all staff, senior team only. 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? Use our quote tool to see what we can offer you and your team. Octopus said many drivers are saving 30 to 40 per cent and some up to 60 per cent. Option to buy the car at the end of the agreement (however you wont get a settlement figure in advance). Octopus may introduce You can calculate your take home pay based of your annual income, PAYE, NI and tax for 2023/24. Octopus may introduce Love Electric Financial Services Limited is a credit broker and not a lender. Drivers of hybrid cars can pay BiK rates of up to 10 times more than an electric car would pay. VAT registration number 386404284. Start by creating a personal profile with salary and tax details. The monthly lease could be too expensive for employees, or the early termination policy wont be a good fit. iCalculator UK Salary Sacrifice Calculator is updated for the 2023/24 tax year. The more realistic comparison would be between personally leasing a petrol or diesel car versus taking an EV via a salary sacrifice scheme. Whos Tusker good for? Our EV experts are on hand to help you find the perfect vehicle to meet your needs. Employees can do test drive days possibly only for larger companies. 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. They all offer electric cars which will result in a lower Benefit in Kind (BiK) tax and no road tax. It is available to all businesses particularly those with fewer than 1,000 employees which may struggle to access similar schemes. Salary sacrifice: Monthly cost of fuel for Corsa-e SE Premium = 10.50. included with our EV salary sacrifice scheme? 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. The calculation for the . Salary sacrifice calculator Use our calculator by using a percentage of your salary or fixed amount contributions. Even though leasing might seem like a cheaper way to drive, the unexpected costs of running the car can quickly stack up. 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.. The lot. 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. 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.. At present, the most popular car ordered is the Tesla Model 3, which was also the fourth best-selling new passenger vehicle in March. Find out how. 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. 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. Any prices quoted are subject to changes in law, regulation, tax or duty beyond our reasonable control. If you have all the information ready then the Car Salary Sacrifice calculations take literally just a minute or two, whether you're an employee or employer. Employers and employees who want everything bundled together and include a charging solution and home energy tarriff. Octopus Electric Vehicles has revealed a new 100 per cent electric car leasing service for businesses looking to become more environmentally friendly. commission. This info does not constitute financial advice, always do your own research on top to ensure it's right for your specific circumstances and remember we focus on rates not service. All you need to do is fill the car with electrons, get out there and enjoy the thrill of driving electric! For me the clincher was just how all inclusive it was. The employer leases the car from Octopus Electric Vehicles and offers the scheme to their hard working team as a perk. This is why EV salary sacrifice schemes are such an attractive method of delivering a tax . With our salary sacrifice package, well throw in a free home charger and 4,000 miles worth of free energy when you switch to Intelligent Octopus. Thats where its important to have early termination protection in place. Note: Looking to get started with a salary sacrifice scheme that has no hidden cost and offers the best early termination policies? 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. We offer everything for you to hit the road in a brand new EV. They allow employers to set up an entire car fleet. They have a Carbon Standard offsetting project that offsets all their salary sacrifice cars. 5. Our registered address is UK House, 5th Floor, 164-182 Oxford Street, London, W1D 1NN. These benefits are non-cash. There are no investment guarantees and you can end up with less than you put in via investments. Salary. Octopus Electric Vehicles Limited is authorised and regulated by the Financial Conduct By using it, you accept our use of cookies. Yes, you give up part of your gross income to pay for the car. 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. 1. No standing. This site uses cookies to allow good user experience. Drop us an email and well be in touch within 24 hours. 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. Not only will you make great savings on BiK rates, but youll also save money on fuel, pay zero road tax until 2025, and enjoy driving the latest electric models while helping to save the planet! This makes it easy for you to charge at night when power is cheapest. Authority, firm reference number 809736, company number 10754317. UK's electric car revolution stalls: Britain falling behind US and Europe in race to become an EV powerhouse, industry experts warn, Perfect storm hits housing: All the signs are flashing that the property market is in for a serious shake-out, says MAGGIE PAGANO, Dacia's 17,000 Jogger estate can turn into Britain's cheapest CAMPERVAN: New 1,200 Sleep Pack adds fold-out double bed, Government hints state pension top-ups deadline is NOT final, as phonelines are jammed and pressure to delay April cut-off date ramps up, House prices are falling: Downturn steps up a gear as property values dip 1.1% in first annual decline since June 2020 - and the largest in 12 years, Thebank that won't pass on rate rises unless you ring and ask:Just one of the ruses greedy lenders use to squeeze savers and pump up profits, The property offer sweet spot! The calculation uses the most common tax-code of "1257L". Retain the same pension contribution, so your take-home pay goes up, Add the savings to your pension pot so it grows for your retirement. Authority, firm reference number 809736, company number 10754317. All rights reserved. If they are self-insuring for specific claims, could that be a risk if they are hit with too many claims? Octopus has been providing salary sacrifice for the last year but only as a broker for other leasing companies. Our salary sacrifice scheme offers absolutely everything that you need to hit the road in your brand new electric car including a free home charger, insurance, servicing, maintenance, breakdown and tyres, all in one easy monthly payment. Ok this was acceptable. It is simple to follow and shows how you can benefit from doing this. Its a financial commitment that needs time and money to manage. Customers ask us why the total cost of an electric car through salary sacrifice can seem higher than taking out a personal lease. The lot. Their monthly lease prices may be higher because they are middle-men to middle-men, serving as an appointed representative of a broker. No off-street parking? Most importantly, you want to ensure the company knows what theyre talking about and can offer guidance. Authority, firm reference number 809736, company number 10754317. Octopus Below is a chart summarising some of the leading electric car schemes in the UK.. I'd imagine the dealer will be falling over themselves to have that car back. is a credit broker and a vehicle hirer but not a consumer credit lender. This is Money is part of the Daily Mail, Mail on Sunday & Metro media group. 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. And we include everything that they need to hit the road in their shiny new electric car. * Please note that these can be expressed as a cash amount or percentage of your salary, Annual Employer Contribution (%) We work with a range of partners, including benefit providers and consultancies, to support their clients to drive electric. The answer is usually hidden in whats included in your agreement, as well as the type of car youre choosing. So far, 141 companies have signed up to salary sacrifice with Octopus, making it available to 22,298 employees. commission. Heres how the costs of the two cars stack up against each other. An employer can set up a salary sacrifice scheme and must mention the scheme in your contract or terms and conditions of employment. Salary Sacrifice can be either a fixed figure or percentage of gross pay. Any prices quoted are subject to changes in law, regulation, tax or duty beyond our reasonable control. Salary sacrifice: Monthly cost of breakdown cover for Corsa-e SE Premium = 0. 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). We'll then provide a detailed breakdown of the potential savings for both you as an employee, and also for your employer. Because electric cars produce zero emissions theres no road tax to pay. Early termination only covers 10% of claims or ten cars - whichever is greatest. Making Tax Calculations Simple. 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. Inside Octopus EV podcast . This is the really fun part. 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. For me to be greener in the short term I'd prefer to make sure my home is better insulated, use 100% renewable energy etc. Sony A95L QD-OLED, X95L MINI LED And Full BRAVIA Range For 2023 (In-Depth Interview). 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. 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. Or if we enter a period of financial difficulty and need to make some employees redundant? Feb 16, 2023. It is just structured in a different way. 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. Fro example, I was getting through a set of good tyres every year (front at least). With most leases, the monthly price only includes the cost of the car. Who is loveelectric good for? Heres How Were Democratising Electric Vehicle Access At Loveelectric.. It may not display this or other websites correctly. loveto halve the cost of your new electric car? Salary sacrifice: Monthly cost of insurance for Corsa-e SE Premium = 0. Shiny new electric car through salary sacrifice calculation started: Create an employer can set up salary. Introduce you can Benefit from doing this the thrill of driving electric at the same time schemes. 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