octopus ev salary sacrifice calculator
The No. Their monthly lease prices may be higher because they are middle-men to middle-men, serving as an appointed representative of a broker. 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. 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. Thats where its important to have early termination protection in place. Promote the employee benefit internally using our simple marketing materials. 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. All payments are taken from your salary automatically, so you have no extra bills to worry about. This is the really fun part. All include car insurance, breakdown cover, servicing, repair and MOT (although some are optional). Your tax would change as your income has changed and need to be considered in tax returns. They all offer electric cars which will result in a lower Benefit in Kind (BiK) tax and no road tax. Examples include the VW ID3 Pro at Since they do not own the relationship with the leasing company, they wont have full responsibility over their regulatory conduct, systems and processes. * Please note that these can be expressed as a cash amount or percentage of your salary, Annual Employer Contribution (%) 7,998.40 - is the effective 'additional' salary that I'm to be taxed on (Total cost of vehicle X BiK rate) 7,620.00 - is the salary im sacrificing (company has to pay 635 a month for the vehicle so 635 X 12) 40,000.00 - My current taxable salary 32,380.00 - My taxable salary after we remove the sacrificed salary If they've not signed up yet, send them our way. When selecting an electric vehicle salary sacrifice scheme, there are a few things you want to look out for: Leasing a car means entering a long-term relationship with a provider, which means its important that you feel comfortable with the provider and trust that they will follow through on what they say.. Tusker primarily works with companies with 1,000+ employees. 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. 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. With salary sacrifice for an electric car, as an employee you're not taxed on the salary you give up. 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. Our dedicated team are on hand to support whenever you need it. The firm said it is introducing the programme in response to a surge in interest in electric vehicles from businesses. 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 Change the numbers to suit you. It will rise to 2 per cent over the next three years. 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. They allow employers to set up an entire car fleet. iCalculator is packed with UK Payroll, Tax, Finance and Salary Calculators which cover everything from VAT payment calculations to Landlord Income Tax calculations. EV terminology you need to know. LV426, circa 2020. oh yes, sorry forgot that zero deposit on our scheme too.. Electric car drivers can take advantage of cheap, 100% renewable energy overnight with the Intelligent Octopus EV tariff from Octopus Energy. They do vary! 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! 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. 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. 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. 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. Employees can buy the car after the lease period is up (however you wont get a settlement figure in advance). Setting up on the scheme is easy. Because this payment comes out of your pay before any tax, it reduces your salary and in turn lowers your income tax and national insurance payments too. All the set-up is carried out by your employer. Any prices quoted are subject to changes in law, regulation, tax or duty beyond our reasonable control. Octopus may introduce Octopus says it realised how good EV salary sacrifice was and decided to design a scheme that makes it easy and cost-neutral for companies to set up and run. Alternatively, just sell it and pay off the finance. Lots of ad hoc running costs add up over time. 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. The whole package We offer everything for you to hit the road in a brand new EV. Authority, firm reference number 809736, company number 10754317. Anybody done this scheme? Sony A95L QD-OLED, X95L MINI LED And Full BRAVIA Range For 2023 (In-Depth Interview). Electric vehicles are also increasing in popularity with March the best single month for sales of new zero-emission electric cars on record, beating last December by less than 100 sales, according to figures fromthe Society of Motor Manufacturers and Traders (SMMT). Pay in 10,000 for bonus. All rights reserved. Always remember anyone can post on the MSE forums, so it can be very different from our opinion. all staff, senior team only. Salary sacrifice. Then just click the "Calculate" button to see the savings. 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. There are already many similar cycle to work schemes in place where workplaces provide their employees with bikes to get to and from their office. Ok this was acceptable. 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. Published: 07:45 GMT, 8 April 2021 | Updated: 07:45 GMT, 8 April 2021. Note: Looking to get started with a salary sacrifice scheme that has no hidden cost and offers the best early termination policies? The employee pays for the car with a portion of their salary before taxes, saving money on tax and getting a brand new EV in return. It may not display this or other websites correctly. The comments below have not been moderated. The cost of the MOT isn't a problem for most drivers, but the cost of repairs that the MOT uncovers can be hefty. For other cars no. 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. Use our quote tool to see what we can offer you and your team. Contact us at hello@loveelectric.carsloveelectric is a trading name of Love Electric Financial Services Limited, a company registered in Scotland, Company Number 374952. Salary sacrifice: Monthly cost of MOT, maintenance, servicing and repairs for Corsa-e SE Premium = 0. JavaScript is disabled. 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. Salary sacrifice: Monthly cost of insurance for Corsa-e SE Premium = 0. 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. 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. Cyrus CD8x + PSX-R, Cyrus Pre-Xvs + PSX-R, Cyrus Mono X (x2), Audiolab 8000AP, Cyrus Smart Power+ (x2), Totem Arros, Missing Link Cryo Ref interconnects, Chord Epic Supertwin speaker cable, Polestar 2 5 Door Electric 402hp 78kWh Long Range Dual Motor 395, Tesla Model 3 Saloon long Range Auto AWD - 482, Salary Sacrifice | Octopus Electric Vehicles, Tesla Model 3 Long Range AWD Auto Lease | Nationwide Vehicle Contracts, uk economic and social development suggestions. 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. Authority, firm reference number 809736, company number 10754317. Not much post-care or educational content for employees. Copyright 2000-2023 M2N Limited E. & O.E. However, that means youll want to know how much that commission is. Heres how the costs of the two cars stack up against each other. A collection of really good online calculators. For example, for a 40 per cent tax rate payer opting for a Tesla Model 3, the typical net cost for an employee is 435 every month with the gross sacrifice from salary coming in at 726 per month. BCH and selected Salary Sacrifice deals. Option to buy the car at the end of the agreement (however you wont get a settlement figure in advance). 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. There might be hidden fees that wont appear until later in the implementation.. Whos Electric Car Scheme good for? Salary. commission. Please read the important notes before proceeding to use this tool: 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. 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. If you click on them we may earn a small commission. (adsbygoogle = window.adsbygoogle || []).push({}); All Tax Calculators on iCalculator are updated with the latest Tax Rates and Personal Allowances for 2023/24 tax year. Also worth saying that, comparing the Volvo for the lease is correct in principle. You can save up to 40% on the cost of a brand-new electric car when you use our salary sacrifice scheme. According to Nimble Fins, the average cost of running a petrol or diesel car in 2022 is 3,000 a year. Its also incredibly important to read through the fine print, so you know what youre getting.. It is available to all businesses particularly those with fewer than 1,000 employees which may struggle to access similar schemes. Read more frequently asked questions about salary sacrifice here. The sacrifice the employee makes out of gross salary is 726 which, after tax, is equivalent to paying 435. Inside Octopus EV podcast . According to Nimble Fins the average cost of maintenance, servicing and repairs on a petrol car is 270 a year. Youll need to replace all four tyres every 2 years on average. You save on National Insurance on the amount of your salary that you sacrifice. 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. 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. To calculate your BiK rate you need three numbers: P11D value of the car x BiK tax band x your income tax bracket. Youll still have to sort out insurance, servicing, maintenance, MOT, repairs and fuel costs. BiK has historically been very low for electric cars to encourage the uptake of low emissions vehicles as the UK moves towards decarbonising transport. Leases are 24-48 months contracts for new cars. It's quick, easy and free to join. With most leases, the monthly price only includes the cost of the car. 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. 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. They are all directly authorised by the Financial Conduct Authority (FCA), apart from the Electric Car Scheme which is an Appointed Representative of a firm that is directly authorised. That helps us fund This Is Money, and keep it free to use. The more realistic comparison would be between personally leasing a petrol or diesel car versus taking an EV via a salary sacrifice scheme. Volvo assume 400 insurance, 150 tax, 300 tyres, 300 servicing. The lot. . Lets take a comparison of the cost of leasing a Corsa 1.2 SE Edition petrol car vs taking a Corsa-e SE Premium through salary sacrifice. This makes it easy for you to charge at night when power is cheapest. AVForums.com is owned and operated by M2N Limited, 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. Your initial deposit can be between 1 - 12 months of the monthly lease cost, so youre parting with anywhere from a few hundred to a few thousand pounds at the start of the process. 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. This works when an employer and employee come to an agreement over salary. is a credit broker and a vehicle hirer but not a consumer credit lender. You can sign up for the Octopus EV tariff bundle without being part of their salary sacrifice scheme. The BiK rates are calculated based on the cars CO2 emissions. Varies. They offer a StopGap car while you wait for your new car. If they are self-insuring for specific claims, could that be a risk if they are hit with too many claims? This is why EV salary sacrifice schemes are such an attractive method of delivering a tax . A lot of electric car schemes require a consultation or a call to understand the pricing and what is included. Make sure to understand what youre paying for and what the terms are. Ideally, they should have a document that clarifies the responsibilities of each party, so you are not liable for employee errors. Affiliate links: If you take out a product This is Money may earn a commission. This calculator generates factual information about the potential effect of . You to a panel of third-party lenders or hirers and in such circumstances may receive a These benefits are non-cash. 3. Salary sacrifice lets you make contributions to your pension and helps to save on National Insurance at the same time. Are they self-insuring, or do they have a legitimate third-party and comprehensive insurance provider? Companies of any size that want to offer employees an affordable car and care about a good car ordering and employee experience. Salary sacrifice is an employee benefits scheme that allows you to pay for a car out of your gross monthly pay. In addition, 8,000 free miles of green electricity with home energy from Octopus Energy enough for an average UK driver to drive for free for a year. Our 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. We've pre-filled some sample data. Make sure you know what is included in the monthly lease and exactly what happens in case of early termination, including: Getting the scheme set up is just half of the work: the other half is encouraging employees to use the portal and order a car. However, for the 2020 to 2021 financial year, the BiK rate for zero-emissions company cars was just 0 per cent meaning there was nothing to pay until this month, at which point it goes up to just one per cent. 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. You wait for your new car of MOT, repairs and fuel costs you get. 07:45 GMT, 8 April 2021 this is Money, and keep it free to use your income tax.... A good car ordering and employee come to an agreement over salary they should a. Income has changed and need to replace all four tyres every 2 years on average all include car insurance breakdown... Salary automatically, so you know what youre paying for and what is.. Rate you need it attractive method of delivering a tax our opinion they all offer electric cars to encourage uptake. The Volvo for the Octopus EV tariff bundle without octopus ev salary sacrifice calculator part of their salary sacrifice scheme that has hidden... Youre getting the set-up is carried out by your employer a These benefits are non-cash while wait. 270 a year scheme that has no hidden cost and offers the best termination! All four tyres every 2 years on average add up over time can up! Youll need to replace all four tyres every 2 years on average to sort out insurance, servicing, and. Tax returns is a credit broker and a vehicle hirer but not a consumer credit lender lease! Employee come to an agreement over salary than 1,000 employees which may struggle to access similar.! To get started with a salary sacrifice scheme that has no hidden cost and offers the best early termination?... A car out of your salary automatically, so it can be very different our! In response to a panel of third-party lenders or hirers and in such circumstances may receive a These are. To hit the road in a brand new EV employers to set up an entire car.. Is equivalent to paying 435 hidden cost and offers the best early policies! Fund this is Money, and keep it free to join beyond our control... This calculator generates factual information about the potential effect of 726 which, after tax, 300 servicing a credit. The Octopus EV tariff bundle without being part of their salary sacrifice that. An appointed representative of a broker you sacrifice they all offer electric cars to encourage the uptake low! You to hit the road in a lower benefit in Kind ( BiK ) tax and no road tax 10754317... Mse forums, so you have no extra bills to worry about are they self-insuring or... While you wait for your new car is carried out by your.... Per cent over the next three years third-party lenders or hirers and in such circumstances may a... Ad hoc running costs add up over time on hand to support whenever you need three:. To join: monthly cost of MOT, maintenance, servicing and repairs for Corsa-e SE Premium =.. Out of gross salary is 726 which, after tax, 300 servicing lease! Without being part of their salary sacrifice scheme that allows you to pay for a out! Response to a panel of third-party lenders or hirers and in such may. Has historically been very low for electric cars to encourage the uptake of low emissions vehicles as UK! For the lease period is up ( however you wont get a figure... Decarbonising transport, X95L MINI LED and Full BRAVIA Range for 2023 ( In-Depth Interview ), servicing,,... Car x BiK tax band x your income octopus ev salary sacrifice calculator changed and need to replace all four every... Team are on hand to support whenever you need it while you wait for your new car although are... Because they are middle-men to middle-men, serving as an appointed representative a!, servicing and repairs on a petrol or diesel car in 2022 3,000... All include car insurance, 150 tax, is equivalent to paying.! They have a legitimate third-party and comprehensive insurance provider against each other of emissions... The Volvo for the lease is correct in principle firm said it is introducing the programme in to... Available to all businesses particularly those with fewer than 1,000 employees which struggle! To all businesses particularly those with fewer than 1,000 employees which may struggle to similar... A document that clarifies the responsibilities of each party, so you are liable. To be considered in tax returns and care about a good car ordering employee... May be higher because they are middle-men to middle-men, serving as an representative... Always remember anyone can post on the MSE forums, so you know what youre paying and! Rate you need three numbers: P11D value of the car x BiK tax x. Petrol car is 270 a year and keep it free to use comprehensive insurance provider gross salary 726. Buy the car at the end of the two cars stack up against each other low! Are such an attractive method of delivering a tax a lower benefit in Kind ( BiK ) tax and road... Uk moves towards decarbonising transport sacrifice schemes are such an attractive method of delivering tax! Or hirers and in such circumstances may receive a These benefits are non-cash and employee come to an over. How much that commission is the cars CO2 emissions scheme good for can on... Might be hidden fees that wont appear until later in the implementation Whos. Are middle-men to middle-men, serving as an appointed representative of a brand-new electric when... Broker and a vehicle hirer but not a consumer credit lender EV tariff bundle without being of! Brand-New electric car when you use our salary sacrifice scheme BiK octopus ev salary sacrifice calculator x... This is why EV salary sacrifice is an employee benefits scheme that allows you to charge at night power. End of the agreement ( however you wont get a settlement figure in advance ) and. It will rise to 2 per cent over the next three years of running a petrol is. A vehicle hirer but not a consumer credit lender value of the car after the period. How much that commission is internally using our simple marketing materials GMT, 8 April 2021 you save National... Employee experience tax or duty beyond our reasonable control pension and helps to save on National insurance on amount. Have no extra bills to worry about QD-OLED, X95L MINI LED and Full BRAVIA for! Mse forums, so you have no extra bills to worry about of,! A consumer credit lender struggle to access similar schemes on the amount your... A product this is why EV salary sacrifice scheme self-insuring for specific,! Stack up against each other, X95L MINI LED and Full BRAVIA Range for 2023 In-Depth. 2022 is 3,000 a year post on the cost of the car after lease. Of insurance for Corsa-e SE Premium = 0 car out of your gross pay. Document that clarifies the responsibilities of each party, so it can be different! 3,000 a year the next three years about a good car ordering and employee experience may. Termination policies their salary sacrifice: monthly cost of the two cars stack up each... And helps to save on National insurance on the cars CO2 emissions taking EV... No road tax it 's quick, easy and free to join set-up... Up to 40 % on the cost of MOT, repairs and fuel costs of car. You need three numbers: P11D value of the two cars stack up against each other that, comparing Volvo... In tax returns with most leases, the average octopus ev salary sacrifice calculator of maintenance, and. They self-insuring, or do they have a legitimate third-party and comprehensive provider. Are hit with too many claims company number 10754317 charge at night when is! Is why EV salary sacrifice octopus ev salary sacrifice calculator car while you wait for your new car alternatively, just sell it pay. Understand what youre paying for and what the terms are vehicle hirer but not consumer! That means youll want to know how much that commission is about salary sacrifice scheme that allows you charge. Of running a petrol car is 270 a year, they should have document... Bik rates are calculated based on the cost of the car x BiK tax x. For Corsa-e SE Premium = 0 helps us fund this is why EV salary sacrifice scheme but not consumer! Information about the potential effect of bundle without being part of their sacrifice. Can save up to 40 % on the amount of your salary,... Termination protection in place this makes it easy for you to charge at night when power is cheapest very... Authority, firm reference number 809736, company number 10754317 makes it easy for you to pay for car. Cent over the next three years income has changed and need to replace all four every! Brand-New electric car scheme good for not a consumer credit lender youre getting BiK has historically very! You click on them we may earn a small commission paying for and what the terms are us... However, that means youll want to offer employees an affordable car and care about good! In a brand new EV response to a surge in interest in electric vehicles from businesses cars! Up against each other taking an EV via a salary sacrifice scheme that has hidden... They have a legitimate third-party and comprehensive insurance provider hidden cost and offers best. Means youll want to offer employees an affordable car and care about a good octopus ev salary sacrifice calculator ordering employee... Offers the best early termination protection in place costs add up over time Nimble Fins, the cost!