Start by creating a personal profile with salary and tax details. Registered office and trading address: 101 Rose Street South Lane, Edinburgh, EH2 3JG. Access 6 hours of super off-peak green energy between 11.30pm to 5.30am. Varies. It's also 100% anonymous, in case you were wondering. Electric car drivers can take advantage of cheap, 100% renewable energy overnight with the Intelligent Octopus EV tariff from Octopus Energy. included in the lease price. If you click on them we may earn a small commission. Fill out this short enquiry form. To calculate your BiK rate you need three numbers: P11D value of the car x BiK tax band x your income tax bracket. The move instantly made an EV financially much better than a petrol or diesel equivalent, leaving drivers with savings on income tax and national insurance. 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. Before 2021, EVs were exempt from paying any BiK tax. Revolut auditor waves the red flag over 477m of unverified revenues but bosses insist they will STILL get a banking licence! Within a fortnight due to the change in the government grant it jumped up by app 50 per month. Whos Tusker good for? How are you going to help us activate employees? Love Electric Financial Services Limited is a credit broker and not a lender. 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). Their early termination policy covers dismissal. Any prices quoted are subject to changes in law, regulation, tax or duty beyond our reasonable control. 50,271 to 100,000. 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. Salary sacrifice: Monthly cost of salary sacrifice for Corsa-e SE Premium = 330.08. 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. Companies with 1,000+ employees that want to offer combustion cars and possibly a salary sacrifice scheme. Decide who you will open up the scheme to e.g. Or if we enter a period of financial difficulty and need to make some employees redundant? 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. Most people dont realise just how much it costs to keep their car running well. Copyright 2000-2023 M2N Limited E. & O.E. They do vary! According to Auto Express, 10% of cars that fail their MOT need new tyres. The tax year figures in the Salary Sacrifice calculator are 2022/23 tax rates. This calculator generates factual information about the potential effect of . 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. 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. 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 rate went up to 1% in April 2021, and changed again in April 2022 to 2%. Then just click the "Calculate" button to see the savings. 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. By essentially giving up a portion of your salary, the amount you get paid is reduced which decreases the amount of income tax and National Insurance you pay.Read more frequently asked questions about salary sacrifice here. Octopus Electric Vehicles - electric vehicle leasing for personal, business and salary sacrifice including charging and cheap renewable electricity. We'll check your eligibility then get in touch to answer any questions you may have. A lot of electric car schemes require a consultation or a call to understand the pricing and what is included. 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). Salary sacrifice: Monthly cost of tyres for Corsa-e SE Premium = 0. 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. Same here, and zero credit check etc. Octopus said many drivers are saving 30 to 40 per cent and some up to 60 per cent. Employees are tied to Octopus own app, Electric Juice, which can include offers and discounts. Insurance is an essential part of keeping your car on the road. Car leasing is the same as a long term rental. You can sign up for the Octopus EV tariff bundle without being part of their salary sacrifice scheme. In this article, well compare the top five electric car schemes to help you decide and understand which solution might be the right fit for you.. 17 min read. You can calculate your take home pay based of your annual income, PAYE, NI and tax for 2023/24. You wont know if your company is eligible until you apply. These benefits are non-cash. One of the first questions employers ask when they reach out to us is: what happens if an employee leaves during the lease? Octopus Electric Vehicles reserves the right to stop this promotion at any time. Promote the employee benefit internally using our simple marketing materials. 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. Authority, firm reference number 809736, company number 10754317. Drop us an email and well be in touch within 24 hours. Our EV experts are on hand to help you find the perfect vehicle to meet your needs. Wevee and loveelectric and other brokers make money by charging a commission on top of the rental. Early termination only covers 10% of claims or ten cars whichever is greatest. At present, the most popular car ordered is the Tesla Model 3, which was also the fourth best-selling new passenger vehicle in March. November 2022 Electric car salary sacrifice is a way of driving an electric car for less by giving up some of your gross salary. '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. The monthly lease could be too expensive for employees, or the early termination policy wont be a good fit. Help your employees benefit from one of the best employee benefit schemes going without it costing you a penny. 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. It simply means their rental prices cannot match the ones of large leasing companies. You just need your employer to sign up first.Fill in your company details so we can get in touch - it wont cost them a penny but it might earn you a few brownie points. There you go, the saving is in the 450 month you're paying as HP. But yes, its a bit difficult to look how the pricing is given the car is pretty rare (I think only 20 examples on Autotrader) but I paid 30k and the loan repayment per month is actually a little lower than what I earlier said. This can only happen when your employer adjusts the terms of your contract. Tesla Model 3's are the most popular car to get through Octopus' salary sacrifice scheme. 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. We offer everything for you to hit the road in a brand new EV. 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. 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. If the employer makes the employee redundant after 6 months, the employer will pay a one-off fee worth the gross amount of one month of the lease payment., Read more about our early termination protection here: Early Termination Protection for Salary Sacrifice Car Scheme: How It Works And What You Need To Know, With many car schemes, you might get initially excited with the affordably priced monthly leases viewed on the main page. This makes it easy for you to charge at night when power is cheapest. This is Money takes a look at Octopus Electric Vehicles' new programme and explains exactly how salary sacrifice schemes work. Prepare for peak pothole season! Its a financial commitment that needs time and money to manage. You can save up to 40% on the cost of a brand-new electric car when you use our salary sacrifice scheme. The calculation uses the most common tax-code of "1257L". This works when an employer and employee come to an agreement over salary. 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. 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. 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. No filling. By using it, you accept our use of cookies. Who is Octopus EV good for? Electric charge point and installation are also optional. 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. This allows you to do one of two things: There is a NI saving for your employer. You will see an alteration to your contract, where you agree to swap part of your salary in exchange for other benefits. They all offer electric cars which will result in a lower Benefit in Kind (BiK) tax and no road tax. We often link to other websites, but we can't be responsible for their content. LEASE SUBSCRIPTION. ), 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. However, that means youll want to know how much that commission is. 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. Youll need to replace all four tyres every 2 years on average. That gives the right answer for most people. Are their answers a little wishy-washy and not specific? Lets run the same calculation with a petrol, diesel and hybrid car: If youre a shareholder or company director who's looking to make savings on BiK and fuel costs, an electric car is the best choice for you. Authority, firm reference number 809736, company number 10754317. 4,000 free miles of home charging with Intelligent Octopus. With most leases, the monthly price only includes the cost of the car. 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. And at loveelectric, we provide one of the best policies on the market. 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. Here are some cheap and easy tricks that will keep your Persimmon warns on profits and slashes dividend by 75% as Record 330million prizes will be paid to Premium Bonds UK's electric car revolution stalls: Britain falling fourth best-selling new passenger vehicle in March, eliminate BIK tax for employees taking an EV via salary sacrifice, Do not sell or share my personal information. Their car running well Rose Street South Lane, Edinburgh, EH2.... Jumped up by app 50 per month to hit the road in a new! Model 3 's are the most common tax-code of `` 1257L '' tariff from Octopus energy to your,! Went up to 40 % on the market you use our salary sacrifice scheme look at Octopus electric Vehicles electric... 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Sacrifice for Corsa-e SE Premium = 330.08 Vehicles - electric vehicle leasing for personal, business and salary sacrifice a... What happens if an employee leaves during the lease questions you may have same a... Salary sacrifice: Monthly cost of tyres for Corsa-e SE Premium = 0 earn a small commission ' programme! Are the most popular car to get through Octopus ' salary sacrifice: Monthly cost of salary sacrifice.. Monthly cost of salary sacrifice scheme not specific find the perfect vehicle to meet your.... All offer electric cars which will result in a brand new EV vehicle to meet your needs how. For personal, business and salary sacrifice: Monthly cost of salary sacrifice Monthly. Which will result in a brand new EV revenues but bosses insist they will STILL get banking. Employees redundant the change in the 450 month you 're paying as.! Way of driving an electric car schemes require a consultation or a call to understand the and! 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octopus ev salary sacrifice calculator
- May 16, 2023