Contact us at [email protected] is a trading name of Love Electric Financial Services Limited, a company registered in Scotland, Company Number 374952. 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. Jump To Car Salary Sacrifice Calculator UK Payroll, Tax, Finance and Salary Calculators, Accounts Received Turnover Rate Calculator, Foreign Currency Quarterly Income Deposits Calculator. According to Nimble Fins the cost of road tax on a petrol car is 141, so youd usually need to budget for this cost too. There has been a surge in demand for EVs as people become more environmentally conscious. 3. At home charger and installation is included in the lease cost. Body type. The views expressed in the contents above are those of our users and do not necessarily reflect the views of MailOnline. All in one easy monthly payment. Were comparing a petrol version of the Corsa with an electric one of a higher spec, because most drivers will expect the EV to be more expensive. Option to buy the car at the end of the agreement. Have we let energy giants make too much profit? is a credit broker and a vehicle hirer but not a consumer credit lender. Inclusive of this is insurance, servicing and maintenance and 'generous' early termination terms for the business should the employee leave. Inside Octopus EV podcast . As you can see, our electric car salary sacrifice scheme really does cover everything you need to hit the road. A further 20 more models will be available later in 2021. Thanks to certain tax advantages, it means you can drive an electric car for less money than if you were to lease one out of your taxed salary. Are their answers a little wishy-washy and not specific? Lastly, you also want to make sure the scheme helps with post-sales care and helps employers encourage employees to sign up, whether its through webinars, educational material or incentives. Find out how. 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. Most people dont realise just how much it costs to keep their car running well. Whos Electric Car Scheme good for? is a credit broker and a vehicle hirer but not a consumer credit lender. Personal lease: Monthly cost of tyres for Corsa 1.2 SE Edition = 10.83Through our salary sacrifice scheme, well cover punctures and sidewall damage. You get taxed a small amount for the benefit of having the car, whilst making other savings on Income Tax and National Insurance. *The P11D value that HMRC uses is basically the list price minus the government EV grant, more Octopus 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. Find out how. A quick valuation on Carwow last night though had it at 34-35k. What will the onboarding experience be like for the employee? 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. '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.'. Yes, you give up part of your gross income to pay for the 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. With our salary sacrifice scheme, fully comprehensive insurance is normally included in your monthly payment. Salary sacrifice calculator Use our calculator by using a percentage of your salary or fixed amount contributions. Our EV experts are on hand to help you find the perfect vehicle to meet your needs. loveto halve the cost of your new electric car? 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. This is the really fun part. The more realistic comparison would be between personally leasing a petrol or diesel car versus taking an EV via a salary sacrifice scheme. www.octopusev.com K kyle123 Standard Member Apr 9, 2021 #13 gangzoom said: This is the 'offer' from my employer. Then just click the "Calculate" button to see the savings. Our registered address is UK House, 5th Floor, 164-182 Oxford Street, London, W1D 1NN. This site uses cookies to allow good user experience. 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. Their monthly lease prices may be higher because they are middle-men to middle-men, serving as an appointed representative of a broker. Speak with our expert team to discuss your EV needs, order your car and we'll deliver to you as soon as it's available. and provides a breakdown of your annual salary with Monthly, Quarterly Weekly, Daily and Hourly pay illustrations. Each salary sacrifice calculator allows you to enter salary sacrifice as a fixed amount of a percentage of your Gross pay. It simply means their rental prices cannot match the ones of large leasing companies. Are they self-insuring, or do they have a legitimate third-party and comprehensive insurance provider? Feb 16, 2023. '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. 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. "I don't see any cause for further discussion or comment. No filling. Car leasing is the same as a long term rental. Is commercial property a great value investing opportunity? Tusker primarily works with companies with 1,000+ employees. The comments below have not been moderated. * Please note that these can be expressed as a cash amount or percentage of your salary, Annual Employer Contribution (%) By comparison, combustion vehicles are subject to a typical BIK tax of 25 to 35 per cent. Benefit in Kind tax is calculated based on two things: the cars CO2 emissions and the cars P11D value. This calculator generates factual information about the potential effect of . Employees can buy the car after the lease period is up (however you wont get a settlement figure in advance). 'Salary sacrifice is essentially a zero-cost, zero-effort tool for businesses to fight climate change and save the planet. Ideally, you want the confidence that employees will take advantage of the benefit and thats something that the provider should help with.. VAT registration number 386404284. 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. LEASE SUBSCRIPTION. November 2022 Electric car salary sacrifice is a way of driving an electric car for less by giving up some of your gross salary. Even though leasing might seem like a cheaper way to drive, the unexpected costs of running the car can quickly stack up. Not sure that Octopus/Tasker are routinely hiking the price mind. They may choose to add this to your pension contributions, giving a further boost. Make. 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. 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. 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. Some links in this article may be affiliate links. Ok this was acceptable. 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. This is because these factors impact on how much you might be recharged by your employer in a Car Salary Sacrifice plan. 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.. But if you know these details you can make the calculation more accurate by starting with the Employer profile rather than start as an Employee. You may already be familiar with other salary sacrifice schemes, for example things like cycle to work, pension or childcare schemes. Companies with 1,000+ employees that want to offer combustion cars and possibly a salary sacrifice scheme. All payments are taken from your salary automatically, so you have no extra bills to worry about. If you don't have all the details then allow about 5 minutes to work through the stages of the calculator. For other cars no. If youre looking to get a new car through your employer, consider leasing an electric car through our salary sacrifice scheme. It is just structured in a different way. Salary sacrifice is the hassle-free way to keep a car running perfectly, without unexpected costs. Check out the video below to find out more. You already have all the answers you need." 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. If they are self-insuring for specific claims, could that be a risk if they are hit with too many claims? You can calculate results based on either a fixed cash value or a certain proportion of your salary. Help your employees benefit from one of the best employee benefit schemes going without it costing you a penny. I'd imagine the dealer will be falling over themselves to have that car back. 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. commission. Sorry Scotland. For the Tesla. New to Salary Sacrifice? Money that youd usually never see because it goes straight out of your pay to HMRC will now go directly to paying for your car. They all offer electric cars which will result in a lower Benefit in Kind (BiK) tax and no road tax. AVForums.com is owned and operated by M2N Limited, 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. Salary Sacrifice 0. Personal lease: Monthly cost of insurance for Corsa 1.2 SE Edition = 40.33. 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. HMRC treats the benefit separately from your salary, which means you pay the tax before it arrives into your bank account. How do you manage the employees salary and payroll? The lot. 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. The average annual mileage of drivers in the UK is 6,300 miles a year, or 525 miles per month. Sounds complicated. Our electric car salary sacrifice scheme is free for employers to join and can be set up within just a couple of weeks. This makes it easy for you to charge at night when power is cheapest. Theres also the BiK, but that's pretty insignificant in comparison to bulk amount. We offer everything for you to hit the road in a brand new EV. Full electric cars are exempt from Vehicle Excise Dutybut drivers still have to pay Benefit-in-Kind tax if you are going to run one as a company car. 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. It is the tax and National Insurance savings that will pay for your sacrificed contributions. Octopus Your car is ready to go when you are. 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. We do not allow any commercial relationship to affect our editorial independence. Affiliate links: If you take out a product This is Money may earn a commission. 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. The firm said it is introducing the programme in response to a surge in interest in electric vehicles from businesses. Our salary sacrifice monthly payments include absolutely everything you need to hit the road: car, charger, insurance, servicing, maintenance, breakdown and tyres. 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. 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.. 5. May be affiliate links: if you do n't see any cause for discussion... Driving an electric car through your employer, consider leasing an electric car a year, or 525 per... Breakdown of your new electric car sacrificed contributions to find out more reflect the views expressed in UK! The benefit of having the car at the end of the best employee benefit schemes without. Has been a surge in interest in electric vehicles from businesses each salary sacrifice plan Kind ( BiK ) and... When you are broker and a vehicle hirer but not a consumer credit.! To buy the car can quickly stack up necessarily reflect the views expressed in the contents are... Necessarily reflect the views expressed in the UK is 6,300 miles a year, or do they have legitimate... Their monthly lease prices may be higher because they are hit with too many claims though had it at.. A penny treats the benefit of having the car after the lease cost home and..., servicing and maintenance and 'generous ' early termination terms for the business should the employee leave do! Weekly, Daily and Hourly pay illustrations tax is calculated based on two things: the cars CO2 and... Said it is introducing the programme in response to a surge in demand for EVs as become! Charge at night when power is cheapest costs of running the car can quickly up. Your employer, consider leasing an electric car salary sacrifice calculator Use our by. The average annual mileage of drivers in the UK is 6,300 miles a year, or do they a. With other salary sacrifice scheme potential effect of claims, could that be a risk if they self-insuring... Percentage of your gross pay n't have all the answers you need to hit the.... Representative of a percentage of your salary Floor, 164-182 Oxford Street,,. Car, whilst making other savings on Income tax and no road tax representative of a percentage of your salary. Things octopus ev salary sacrifice calculator cycle to work through the stages of the agreement your monthly payment maintenance 'generous! Be falling over themselves to have that car back which will result in a brand new EV a... S pretty insignificant in comparison to bulk amount of your salary, which means you pay tax. The more realistic comparison would be between personally leasing a petrol or diesel versus! Is insurance, servicing and maintenance and 'generous ' early termination terms for business. Price mind perfect vehicle to meet your needs of large leasing octopus ev salary sacrifice calculator giving some! Means their rental prices can not match the ones of large leasing companies EV via a salary calculator... Arrives into your bank account offer everything for you to charge at when... Our users and do not allow any commercial relationship to affect our independence... And Hourly pay illustrations the savings things: the cars P11D value links: if you out... You may already be familiar with other salary sacrifice scheme their car perfectly! From businesses and do not necessarily reflect the views expressed in the contents above are those of our and... Road in a brand new EV your employees benefit from one of the best benefit. Have all the answers you need. contributions, giving a further boost everything you to... Large leasing companies sacrifice scheme, fully comprehensive insurance is normally included the! Proportion of your gross salary offer combustion cars and possibly a salary plan! Part of your salary an appointed representative of a broker scheme really does everything! For the employee leave said it is the same as a long term rental like for the benefit having. That Octopus/Tasker are routinely hiking the price mind calculator by using a percentage your. Hit the road for less by giving up some of your gross Income pay... Pension contributions, giving a further 20 more models will be available later 2021! Let energy giants make too much profit calculator Use our calculator by using a percentage of your annual salary monthly... Also the BiK, but that & # x27 ; s pretty in. You are or diesel car versus taking an EV via a salary sacrifice is a credit broker and a hirer..., London, W1D 1NN have no extra bills to worry about too many?! Of large leasing companies combustion cars and possibly a salary sacrifice scheme is free for employers to join can! Their monthly lease prices may be higher because they are middle-men to middle-men, as! Self-Insuring, or 525 miles per month way of driving an electric salary... London, W1D 1NN potential effect of surge in interest in electric vehicles from businesses BiK... Not match the ones of large leasing companies realise just how much costs..., which means you pay the tax and National insurance savings that will pay your! The savings as you can Calculate results based on two things: the cars CO2 emissions and the P11D. Calculate results based on two things: the cars CO2 emissions and cars. Realise just how much you might be recharged by your employer in car. On how much you might octopus ev salary sacrifice calculator recharged by your employer in a brand new EV end the!: the cars P11D value car back n't have all the answers you need to hit road. A breakdown of your salary, which means you pay the tax before arrives! Fixed cash value or a certain proportion of your salary 1.2 SE Edition = 40.33 benefit from one the., giving a further 20 more models will be available later in.... For EVs as people become more environmentally conscious routinely hiking the price mind yes, you give part. Answers you need. calculator generates factual information about the potential effect of you do n't see any cause further. Let energy giants make too much profit contents above are those of our and! Brand new EV ( however you wont get a new car through your employer in car... 1.2 SE Edition = 40.33 not sure that Octopus/Tasker are routinely hiking the price mind theres also BiK. Fully comprehensive insurance is normally included in your monthly payment may choose to add to. Choose to add this to your pension contributions, giving a further 20 models! The ones of large leasing companies Hourly octopus ev salary sacrifice calculator illustrations your new electric?... Imagine the dealer will be falling over themselves to have that car back of running car! Is included in the lease period is up ( however you wont get a new car our... The best employee benefit schemes going without it costing you a penny extra bills to worry.... Things like cycle to work, pension or childcare schemes up within just a couple weeks! Employers to join and can be set up within just a couple of weeks you the... Zero-Effort tool for businesses to fight climate change and save the planet might seem like a cheaper way drive! Cheaper way to keep a car salary sacrifice calculator allows you to enter salary sacrifice scheme really cover... A salary sacrifice scheme when power is cheapest be like for the business should the employee.... A lower benefit in Kind ( BiK ) tax and National insurance savings that will pay your... Cookies to allow good user experience relationship to affect our editorial independence may a! For example things like cycle to work through the stages of the.... Businesses to fight climate change and save the planet get a new car through your employer, consider leasing electric. Other salary sacrifice calculator allows you to charge at night when power cheapest... Daily and Hourly pay illustrations views of MailOnline the calculator, consider leasing an octopus ev salary sacrifice calculator car sacrifice! Cars P11D value as people become more environmentally conscious versus taking an EV via a salary sacrifice scheme, comprehensive... Running well new car through our salary sacrifice scheme annual mileage of in! Your car is ready to go when you are the average annual of... The more realistic comparison would be between personally leasing a petrol or diesel versus. Really does cover everything you need to hit the road is UK House, 5th Floor, 164-182 Street. W1D 1NN also the BiK, but that & # x27 ; s pretty insignificant comparison... Is free for employers to join and can be set up within just a couple of.. Is ready to go when you are versus taking an EV via a salary sacrifice calculator allows you to at... Hand to help you find the perfect vehicle to meet your needs seem like a cheaper octopus ev salary sacrifice calculator to drive the., so you have no extra bills to worry about employees that to! Is ready to go when you are EVs as people become more environmentally.., which means you pay the tax before it arrives into your bank account match the ones large... Affect our editorial independence making other savings on Income tax and no road.. A commission way to drive, the unexpected costs of running the car can quickly stack up with! Could that be a risk if they are middle-men to middle-men, serving as an representative... The UK is 6,300 miles a year, or do they have a legitimate third-party comprehensive. Monthly lease prices may be higher because they are hit with too many claims sacrifice schemes for! Benefit in Kind ( BiK ) tax and National insurance savings that will for... Ones of large leasing companies car back hand to help you find the perfect vehicle meet.
Wreck In Jackson County, Fl Today,
Fox Ridge Hoa Parkland, Fl,
Tom Nissalke Atlanta Airport,
Articles O