That helps us fund This Is Money, and keep it free to use. Wales. 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. 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. The BiK rates are calculated based on the cars CO2 emissions. Electric charge point and installation are also optional. One in three landlords could be forced to sell their buy-to-let properties after failing their lender's affordability test to remortgage, DVLA made 24M selling details to private parking firms and councils last year, as motorists got 2.6bn in fines, The no-hassle Isa investing guide: What you need to know and why it matters more than ever now, Could the new Harry Potter 50p coins conjure you a small fortune? Monthly Salary Sacrifice Calculator for 2023/24 Tax Year Calculate your adjusted take home pay and deduction of Salary Sacrifice from your Gross Pay. The lot. You can save up to 40% on the cost of a brand-new electric car when you use our salary sacrifice scheme. Lots of ad hoc running costs add up over time. Inclusive of this is insurance, servicing and maintenance and 'generous' early termination terms for the business should the employee leave. We hope this comparison is practical and will help you navigate the field of electric car vehicle salary sacrifice schemes. 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. Heres How Were Democratising Electric Vehicle Access At Loveelectric.. 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. Octopus Electric Vehicles - electric vehicle leasing for personal, business and salary sacrifice including charging and cheap renewable electricity. Some links in this article may be affiliate links. 2. Read this guide to Salary Sacrifice and How Salary Sacrifice can reduce the amount of tax you pay. '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.'. commission. Tusker monthly lease prices may be higher because they are a leasing company and offer lifestyle protection. 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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. 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! The employer leases the car from Octopus Electric Vehicles and offers the scheme to their hard working team as a perk. This website uses the TMDb API but is not endorsed or certified by TMDb. The sacrifice the employee makes out of gross salary is 726 which, after tax, is equivalent to paying 435. 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. Salary sacrifice: Monthly cost of breakdown cover for Corsa-e SE Premium = 0. Registered office and trading address: 101 Rose Street South Lane, Edinburgh, EH2 3JG. You can keep hold of your cash and pay for your car out of your monthly salary at one standard cost across the period. VAT registration number 386404284. Volvo assume 400 insurance, 150 tax, 300 tyres, 300 servicing. Love Electric Financial Services Limited is authorised and regulated by the Financial Conduct Authority; firm reference number 743264. JavaScript is disabled. Having now been able to generate a quote I'm afraid I could not justify the purchase on anything other than evangelical environmental reasons. Feb 16, 2023. 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. Contact us at hello@loveelectric.carsloveelectric is a trading name of Love Electric Financial Services Limited, a company registered in Scotland, Company Number 374952. As we mentioned above, each salary sacrifice monthly lease will be different and include different services. Click on the appropriate button below to get your Car Salary Sacrifice calculation started: Create an employer profile for taxes and pension contributions. Even though leasing might seem like a cheaper way to drive, the unexpected costs of running the car can quickly stack up. Our tax calculators are designed to make it easy for you to understand how much you pay and how your money is divided up. 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. The launch comes as EVs reach a tipping point thanks to falling cost, government incentives and changing attitudes towards zero emission vehicles. 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. Our dedicated team are on hand to support whenever you need it. Our electric car salary sacrifice scheme is free for employers to join and can be set up within just a couple of weeks. Youll need to replace all four tyres every 2 years on average. The company saves 53.19 on National Insurance meaning it is cost neutral for them. Body type. included in the lease price. If youre looking to get a new car through your employer, consider leasing an electric car through our salary sacrifice scheme. 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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. 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. None require an upfront deposit from an employer or employee. 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? Option to buy the car at the end of the agreement (however you wont get a settlement figure in advance). New: Octopus Electric Vehicles has launched a new salary sacrifice scheme for businesses. Shortest delivery time. The Employee Car Salary Sacrifice calculator estimates the net cost of Car Salary Sacrifice to the employee including: The Employer Car Salary Sacrifice calculator estimates all of the items in the Employee calculator plus: We've built the calculator to cover lots of different permutations of pay, bonus, overtime and pension benefits, but don't worry if your exact arrangements aren't shown. Also bear in mind the wait for the Tesla MAY be long, may be quick. The Nissan Leaf is one of the most popular electric vehicles currently leased by Octopus. Or if we enter a period of financial difficulty and need to make some employees redundant? Ready to find out whats so special about our EV salary sacrifice scheme? All rights reserved. Octopus 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. Yeah, seems so. Absolutely will need to see what the terms of the loan are that was arranged by Volvo with Santander. BCH and selected Salary Sacrifice deals. Personal lease: Corsa 1.2 SE Edition initial payment = 389.03 (equivalent to 1 month lease + broker fee of 198.99)When you get your car through our salary sacrifice scheme theres no upfront cost. 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. ), 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. So their fee comes out of charging double rent for the first 6 months, as well as an additional fee to the employer.. We ran a comparison between two makes of Vauxhall Corsa - a petrol Corsa 1.2 SE Edition, and its electric equivalent, the Corsa-e SE Premium. 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. No queuing. 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. Octopus 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. If you want info on any particular car, check them out from Go Eve's Selection. When you lease a new car, youll usually make an initial payment at the start of the contract. Body type. The Employer Car Salary Sacrifice calculator estimates all of the items in the Employee calculator plus: employer's national insurance contributions employer's pension scheme contributions VAT recovery and business tax relief the employer's total cost of Car Salary Sacrifice before and after tax relief/recovered VAT Fixed AmountPercentage of Salary. EV terminology you need to know. This has been updated for the current tax year of 2022/23. Salary sacrifice calculator Use our calculator by using a percentage of your salary or fixed amount contributions. According to Nimble Fins, the average cost of running a petrol or diesel car in 2022 is 3,000 a year. Maintenance and insurance can optionally be added. Although many are legitimate and offer a great service, some are simply looking for a quick commission fee and will have artificially high monthly payments to cover costs.. You make the payments for your new car before you pay any tax, which in turn lowers your monthly income and means you pay lower Income Tax and National Insurance. Are their answers a little wishy-washy and not specific? Ok this was acceptable. Whos Tusker good for? The tool gives detailed before and after calculations of pay, tax and national insurance, showing the benefits of switching to a salary sacrifice plan. yours tax-code is different, the calculator will still be a good indication. Benefit in Kind tax is calculated based on two things: the cars CO2 emissions and the cars P11D value. For this reason, you want to ensure the team communicates clearly and quickly. According to Auto Express, 10% of cars that fail their MOT need new tyres. or less. 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. 1. . The numbers are based on a 40-year-old driver who earns 40,000, lives in South London and drives 8,000 miles a year. 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. 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 Electric Dreams aims to support the growing number of employees looking to go electric using salary sacrifice which could ultimately help them save thousands of pounds on both national insurance and income tax. Same here, and zero credit check etc. But really, it's not. ICO reference number: ZB075747. Octopus Electric Vehicles Limited is authorised and regulated by the Financial Conduct Find out how. If they've not signed up yet, send them our way. Electric car scheme customers will have to pay double rent for the first six or 12 months. Feb 9, 2023. Your car is ready to go when you are. 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. With most leases, the monthly price only includes the cost of the car. Who is WeVee good for? Any prices quoted are subject to changes in law, regulation, tax or duty beyond our reasonable control. 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 =. 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.. You save on National Insurance on the amount of your salary that you sacrifice. 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. 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. These benefits are non-cash. Is commercial property a great value investing opportunity? Also, there is a slight bump to take care of loan car and also the fact that resignation (and some other things) do allow you to give the car back at no penalty (so they have to get that back somewhere). According to the Nimble Fins research, the average petrol car driver in the UK spends around 1,272 a year on fuel to get from A to B, at a cost of around 20.1p per mile. However, there are a couple of things to keep in mind when working with us: We dont offer combustion cars or access to cars via Personal Contract Purchase, personal leases or business hire. AVForums.com is owned and operated by M2N Limited, 'If just 10 per cent of UK's employees switched to electric we could decimate CO2 emissions of cars, while collectively saving almost 4billion per year. They all offer electric cars which will result in a lower Benefit in Kind (BiK) tax and no road tax. Help your employees benefit from one of the best employee benefit schemes going without it costing you a penny. Refer your clients to give them access to our electric car salary sacrifice scheme. BiK has historically been very low for electric cars to encourage the uptake of low emissions vehicles as the UK moves towards decarbonising transport. Without Salary Sacrifice 663.00 per month* With Salary Sacrifice 445.00 per month** Our monthly car lease cost includes: Insurance Servicing and maintenance Tyre replacements Breakdown cover Accident management Zero deposit Optional vehicle charging point *Quote for illustrative purposes only - excluding motor insurance. The cost of the MOT isnt a problem for most drivers, but the cost of repairs that the MOT uncovers can be hefty. Promote the employee benefit internally using our simple marketing materials. Car, charger, energy, insurance, servicing, maintenance, breakdown and tyres. 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. 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. Below is a chart summarising some of the leading electric car schemes in the UK.. LV426, circa 2020. oh yes, sorry forgot that zero deposit on our scheme too.. Salary sacrifice is an employee benefits scheme that allows you to pay for a car out of your gross monthly pay. 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. Fill out this short enquiry form. Inside Octopus EV podcast . Ideally, they arent spending hours trying to order a car, and the experience is relatively intuitive. is a credit broker and a vehicle hirer but not a consumer credit lender. This makes it easy for you to charge at night when power is cheapest. The rate went up to 1% in April 2021, and changed again in April 2022 to 2%. It may not display this or other websites correctly. Change the numbers to suit you. 'Salary sacrifice is essentially a zero-cost, zero-effort tool for businesses to fight climate change and save the planet. We are no longer accepting comments on this article. "I don't see any cause for further discussion or comment. Any prices quoted are subject to changes in law, regulation, tax or duty beyond our reasonable control. An electric car salary sacrifice scheme is a way for your employees to get an EV as an employee benefit and save on tax. For a better experience, please enable JavaScript in your browser before proceeding. Sorry Scotland. 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. This site uses cookies to allow good user experience. Salary sacrifice: Monthly cost of insurance for Corsa-e SE Premium = 0. Octopus Electric Vehicles reserves the right to stop this promotion at any time. Have we let energy giants make too much profit? Employers will first rent an electric car from a supplier with the employee then given the option to rent this car in exchange for a part of their salary. Europe's busiest forums, with independent news and expert reviews, for TVs, Home Cinema, Hi-Fi, Movies, Gaming, Tech and more. We've split our Car Salary Sacrifice calculator between employers and employees. The actual amount will depend on which costs the employer wishes to take in to account. If you don't have all the details then allow about 5 minutes to work through the stages of the calculator. 3. The lot. 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. Making Tax Calculations Simple. 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. 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). Its also incredibly important to read through the fine print, so you know what youre getting.. Employees pay Benefit in Kind tax on benefits they get from their employer on top of their salary. Money that you'd normally never see (because it goes straight out of your pay to HRMC) goes directly towards paying for your car. 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. UK Payroll, Tax, Finance and Salary Calculators, Accounts Received Turnover Rate Calculator, Foreign Currency Quarterly Income Deposits Calculator. Our salary sacrifice scheme is the perfect choice if you want to make savings on switching to electric through your salary, and ditch the hassle of car ownership. 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. The comments below have not been moderated. 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. Because electric cars produce zero emissions theres no road tax to pay. Most have early termination protection (but each one will include different terms, so make sure to ask). Well-maintained tyres keep you safe on the road and make your travel more fuel-efficient, but if theyre not well looked after they can result in your car failing its MOT. Ideally, you want the confidence that employees will take advantage of the benefit and thats something that the provider should help with.. According to Nimble Fins the average cost of maintenance, servicing and repairs on a petrol car is 270 a year. Your salary does not change overall. This means your net pay will go down by the amount you pay for the car, minus your tax savings. Salary sacrifice is a way of getting access to a brand new car through your gross salary and saving up to 40%. What's included with our EV salary sacrifice scheme? When you agree to a salary sacrifice scheme, you agree to reduce your earnings (that's what you pay tax on) in exchange for something else. 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. 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. United States Salary Tax Calculator 2022/23, United States (US) Tax Brackets Calculator, Statistics Calculator and Graph Generator, Grouped Frequency Distribution Calculator, UK Employer National Insurance Calculator, DSCR (Debt Service Coverage Ratio) Calculator, Arithmetic & Geometric Sequences Calculator, Volume of a Rectanglular Prism Calculator, Geometric Average Return (GAR) Calculator, Scientific Notation Calculator & Converter, Probability and Odds Conversion Calculator, Estimated Time of Arrival (ETA) Calculator, Input your total annual salary (the gross figure), Put in the annual contribution from your employer, Also put in the annual contribution that you pay, You can convert employee savings to pension contributions simply select Yes or No, Select the percentage of employer's National Insurance that the employer wants to retain.
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