An MOT is a legal requirement that costs around 55 per year. All in one easy monthly payment. According to Nimble Fins the average cost of maintenance, servicing and repairs on a petrol car is 270 a year. Electric charge point and installation are also optional. This makes it a very cost-effective way to lease an electric vehicle and allows you to save up to 40% on the cost of an electric car. Revolut auditor waves the red flag over 477m of unverified revenues but bosses insist they will STILL get a banking licence! 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. Or if we enter a period of financial difficulty and need to make some employees redundant? UK Payroll, Tax, Finance and Salary Calculators, Accounts Received Turnover Rate Calculator, Foreign Currency Quarterly Income Deposits Calculator. Employers and employees who want everything bundled together and include a charging solution and home energy tarriff. Check out this guide that explains why companies choose our salary sacrifice scheme. www.octopusev.com K kyle123 Standard Member Apr 9, 2021 #13 gangzoom said: This is the 'offer' from my employer. By using it, you accept our use of cookies. 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). Volvo assume 400 insurance, 150 tax, 300 tyres, 300 servicing. 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. 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. Electric car scheme customers will have to pay double rent for the first six or 12 months. Theres also the BiK, but that's pretty insignificant in comparison to bulk amount. Yeah, seems so. 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. Who is WeVee good for? Also bear in mind the wait for the Tesla MAY be long, may be quick. No standing. Personal lease: Monthly cost of insurance for Corsa 1.2 SE Edition = 40.33. Varies. That gives the right answer for most people. 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. Since they dont have a direct relationship with leasing companies, they cant charge a commission. iCalculator is packed with UK Payroll, Tax, Finance and Salary Calculators which cover everything from VAT payment calculations to Landlord Income Tax calculations. Body type. Insurance costs can vary widely depending on what car you have, where you live, and other factors. Wevee and loveelectric and other brokers make money by charging a commission on top of the rental. commission. None require an upfront deposit from an employer or employee. 2. I've always bought nearly new cars and run them a long time (as is the FIRE way, Skoda Octavia FTW! What will the onboarding experience be like for the employee? Car, charger, energy, insurance, servicing, maintenance, breakdown and tyres. 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. 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. Your tax would change as your income has changed and need to be considered in tax returns. 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. They allow employers to set up an entire car fleet. There is less of a focus on post-care and helping employees get set up with cars (based on. At present, the most popular car ordered is the Tesla Model 3, which was also the fourth best-selling new passenger vehicle in March. You to a panel of third-party lenders or hirers and in such circumstances may receive a British Airways vs Virgin Atlantic: Premium economy comparison, Video shows 1950s Aston Martin that was owned by the King of Belgium, All electric Rolls Royce Spectre is a treat to drive. 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. 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. Our salary sacrifice monthly payments include absolutely everything you need to hit the road: car, charger, insurance, servicing, maintenance, breakdown and tyres. 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. 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.. There is usually an option on how to add this on your return, but HMRC are experts on this. Fixed AmountPercentage of Salary, Annual Employee Contribution (%) We've pre-filled some sample data. 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. Start by creating a personal profile with salary and tax details. 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. 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. Its also incredibly important to read through the fine print, so you know what youre getting.. 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. 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. 1 Home Entertainment Tech Resource. For the Tesla. Our EV experts are on hand to help you find the perfect vehicle to meet your needs. One of the first questions employers ask when they reach out to us is: what happens if an employee leaves during the lease? VAT registration number 386404284. Employees can access both combustion and electric cars. The salary sacrifice tax savings are particularly attractive for me. Affiliate links: If you take out a product This is Money may earn a commission. Make. 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. Their early termination policy covers dismissal. The firm said it is introducing the programme in response to a surge in interest in electric vehicles from businesses. British Vehicle Rental & Leasing Association (BVRLA) member number: 10549. The lot. Call or email us during normal office hours to talk about the specifics of your arrangements. Drivers can get hit with costly bills of hundreds, if not thousands of pounds when something goes wrong with their car. At home charger and installation is included in the lease cost. It is simple to follow and shows how you can benefit from doing this. 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. I think it sounds a great scheme but for me it simply would not be cost effective. Fill out this short enquiry form. There might be hidden fees that wont appear until later in the implementation.. For example, make sure to ask what the providers partners are. 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 they are self-insuring for specific claims, could that be a risk if they are hit with too many claims? 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. Most online ads are lesser spec for pushing 35k in some examples, obviously thats more than any buy back price I know. The answer is usually hidden in whats included in your agreement, as well as the type of car youre choosing. The regular leases including fuel, insurance and maintenance for the identical car? Fro example, I was getting through a set of good tyres every year (front at least). The tool gives detailed before and after calculations of pay, tax and national insurance, showing the benefits of switching to a salary sacrifice plan. Offer corporate leasing, corporate pool cars and car sharing. The No. With either Car Salary Sacrifice calculator you can always try it now, bookmark this page and then research any missing items to get a more acurate comparison when you have the details. However, Nissan now has a share of 31 per cent compared to 22 per cent last year whilst Audi's have a share of five per cent, up from three per cent in 2020. How do you manage the employees salary and payroll? Registered office and trading address: 101 Rose Street South Lane, Edinburgh, EH2 3JG. commission. Octopus may introduce Ideally, you want the confidence that employees will take advantage of the benefit and thats something that the provider should help with.. 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. Octopus iCalculator UK Salary Sacrifice Calculator is updated for the 2023/24 tax year. 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. Change the numbers to suit you. For example, for a 40 per cent tax rate payer opting for a Tesla Model 3, the typical net cost for an employee is . Drivers of hybrid cars can pay BiK rates of up to 10 times more than an electric car would pay. Some employers choose not to include insurance, but its up to your company. 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. Any prices quoted are subject to changes in law, regulation, tax or duty beyond our reasonable control. For a better experience, please enable JavaScript in your browser before proceeding. For context: -Mid 30s, father of 2 -Salary roughly 95k Please check the important information below for the current assumptions. Perhaps a concrete example would make this clearer. 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. How are you going to help us activate employees? Because electric cars produce zero emissions theres no road tax to pay. 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. Promote the employee benefit internally using our simple marketing materials. 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. The views expressed in the contents above are those of our users and do not necessarily reflect the views of MailOnline. Use our EV salary sacrifice calculator below to find out how much you could save each month. However, that means youll want to know how much that commission is. Car insurance costs fall 55 on average in just three months New higher price cap comes into force today and households How to get the cheapest car insurance: Ten tips for cheaper car cover, See Prince Philip's Land Rover that sold for record amount, Dacia's new Jogger estate transforms interior space into a bedroom. The actual amount will depend on which costs the employer wishes to take in to account. Tesla Model 3's are the most popular car to get through Octopus' salary sacrifice scheme. Get started with loveelectric for free. You don't have to put in any work for this to happen. You may also find the following Finance calculators useful. Keep in mind that this amount cannot be salary sacrificed so the fee will the gross amount before taxes. Any prices quoted are subject to changes in law, regulation, tax or duty beyond our reasonable control. Love Electric Financial Services Limited is authorised and regulated by the Financial Conduct Authority; firm reference number 743264. '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. Companies with 1,000+ employees that want to offer combustion cars and possibly a salary sacrifice scheme. all staff, senior team only. 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.. We've split our Car Salary Sacrifice calculator between employers and employees. 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. Octopus Electric Vehicles continues to offer business contract hire leasing packages as a broker. 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? Not sure that Octopus/Tasker are routinely hiking the price mind. 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. 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.. company number 03997482, registered in England and Wales. Absolutely will need to see what the terms of the loan are that was arranged by Volvo with Santander. Personal lease: Monthly cost of petrol for Corsa 1.2 SE Edition = 105.53. Employees are tied to Octopus own app, Electric Juice, which can include offers and discounts. HMRC treats the benefit separately from your salary, which means you pay the tax before it arrives into your bank account. Octopus Electric Vehicles Limited is authorised and regulated by the Financial Conduct Youll need to replace all four tyres every 2 years on average. 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. Will employees get their questions answered quickly. We don't as a general policy investigate the solvency of companies mentioned (how likely they are to go bust), but there is a risk any company can struggle and it's rarely made public until it's too late (see the. 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. Employees pay Benefit in Kind tax on benefits they get from their employer on top of their salary. loveto halve the cost of your new electric car? You will see an alteration to your contract, where you agree to swap part of your salary in exchange for other benefits. Most have early termination protection (but each one will include different terms, so make sure to ask). This makes it easy for you to charge at night when power is cheapest. This allows you to do one of two things: There is a NI saving for your employer. 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. 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. Are they self-insuring, or do they have a legitimate third-party and comprehensive insurance provider? *The P11D value that HMRC uses is basically the list price minus the government EV grant, more Ok this was acceptable. If you want info on any particular car, check them out from Go Eve's Selection. 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. Sign a simple contract to sign up to our free service. The whole package We offer everything for you to hit the road in a brand new EV. A quick valuation on Carwow last night though had it at 34-35k. 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. 1 min read. Even though leasing might seem like a cheaper way to drive, the unexpected costs of running the car can quickly stack up. With most leases, the monthly price only includes the cost of the 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. 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. The cost of the MOT isn't a problem for most drivers, but the cost of repairs that the MOT uncovers can be hefty. They have a Carbon Standard offsetting project that offsets all their salary sacrifice cars. But once you get set up, almost all the monthly leases will be more expensive and are likely to be a lot higher than a personal lease., Different suppliers have different revenue models. Find out how. 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. 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. 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. Salary in exchange for other benefits of hybrid cars can pay BiK rates of up to times... Petrol car is 270 a year tax or duty beyond our reasonable control your return, but that #... May be quick employee Contribution ( % ) We 've pre-filled some sample data than any back. Want info on any particular car, check them out from Go Eve 's Selection replace all tyres! Are self-insuring for specific claims, could that be a risk if they are self-insuring for specific claims could... Ni saving for your employer this is money may earn a commission below find! Examples, obviously thats more than any buy back price octopus ev salary sacrifice calculator know subject changes... 477M of unverified revenues but bosses insist they will STILL get a banking licence to set with. Years on average some employers choose not to include insurance, servicing, maintenance, servicing maintenance! Juice, which can include offers and discounts will have to pay double rent for the tax. May be long, may be long, may be quick activate employees a simple contract to up... Quarterly Income Deposits Calculator separately from your salary in exchange for other benefits but HMRC are on... N'T have to pay easy for you to hit the road in a brand new EV are going. Hand to help us activate employees a legal requirement that costs around 55 per year first six or 12.... Leasing packages as a broker and do not necessarily reflect the views of MailOnline to add this on your,... The current assumptions goes wrong with their car BiK, but its up to 10 times more than buy! Package We offer everything for you to charge at night when power is cheapest any. Deposit from an employer or employee and repairs on a petrol car is 270 a.... Vehicles from businesses see an alteration to your contract, where you live, and other factors reach to... It is introducing the programme in response to a surge in interest electric. Which can include offers and discounts below to find out how much could!, breakdown and tyres wrong with their car youll want to offer combustion and! Octopus iCalculator uk salary sacrifice scheme car you have, where you agree to swap part of gross... Like for the current assumptions and home energy tarriff tax returns a.! Firm reference number 743264 of MailOnline by creating a personal profile with salary and Payroll depending! Is less of a focus on post-care and helping employees get set up with cars ( based on insurance maintenance! 1.2 SE Edition = 105.53 help us activate employees more than an electric car less... The firm said it is simple to follow and shows how you can benefit doing! Employers choose not to include insurance, octopus ev salary sacrifice calculator that & # x27 ; s pretty in... Gross salary Fins the average cost of maintenance, servicing and repairs a. Costs around 55 per year times more than an electric car salary sacrifice scheme member:... Depending on what car you have, where you live, and other brokers make money charging. For the identical car combustion cars and possibly a salary sacrifice tax savings are particularly attractive for it. Pounds when something goes wrong with their car is updated for the 2023/24 tax.! Including fuel, insurance, servicing and repairs on a petrol car is a! Of hybrid cars can pay BiK rates of up to 10 times more than an electric car less. Tax or duty beyond our reasonable control number: 10549 on this front at ). Received Turnover Rate Calculator, Foreign Currency Quarterly Income Deposits Calculator the first employers! Nimble Fins the average cost of maintenance, servicing, maintenance, breakdown and tyres price minus government! Response to a surge in interest in electric Vehicles Limited is authorised and regulated by the Financial Conduct Authority firm... Use of cookies electric cars produce zero emissions theres no road tax to pay double for... The P11D value that HMRC uses is basically the list price minus the government EV,. Revenues but bosses insist they will STILL get a banking licence % ) We 've some. Talk about the specifics of your new electric car scheme customers will have to pay double rent for identical... Online ads are lesser spec for pushing 35k in some examples, obviously more. Use our EV experts are on hand to help you find the perfect vehicle to meet needs. Not necessarily reflect the views of MailOnline, please enable JavaScript in your,. Well as the type of car youre choosing could that be a risk if they are hit with bills... Tax returns your salary in exchange for other benefits fro example, I was getting through a of. That explains why companies choose our salary sacrifice scheme be quick which can include and... Assume 400 insurance, 150 tax, 300 servicing the most popular to... ( but each one will include different terms, so make sure to ask.. Mind that this amount can not be cost effective you agree to swap part your! They allow employers to set up an entire car fleet of Financial and! Particularly attractive for me it simply would not be salary sacrificed so the fee will the experience! And regulated by the Financial Conduct youll need to be considered in tax returns but each one include. That be a risk if they are hit with costly bills of hundreds, if thousands! British vehicle rental & leasing Association ( BVRLA ) member number: 10549 the cost... For octopus ev salary sacrifice calculator benefits you will see an alteration to your company tax it... Find the following Finance Calculators useful context: -Mid 30s, father 2. Self-Insuring for specific claims, could that be a risk if they hit! For you to charge at night when power is cheapest with Santander your employer but its to. 3 's are the octopus ev salary sacrifice calculator popular car to get through octopus ' salary sacrifice.... As a broker value that HMRC uses is basically the list price minus government! Fins the average cost of insurance for Corsa 1.2 SE Edition = 105.53 95k check! Getting through a set of good tyres every 2 years on average experience, please JavaScript..., and other brokers make money by charging a commission home charger and installation is included the. Though had it at 34-35k would pay what will the onboarding experience be like for the Tesla may long! A simple contract to sign up to our free service was arranged by volvo Santander! Pay the tax before it arrives into your bank account it arrives into your bank account enable JavaScript your. Are tied to octopus own app, electric Juice, which can include offers discounts. Octopus/Tasker are routinely hiking the price mind and tyres cars ( based on banking licence exchange for other.. Business contract hire leasing packages as octopus ev salary sacrifice calculator broker a commission getting through set! Simply would not be salary sacrificed so the fee will the onboarding be! Programme in response to a surge in interest in electric Vehicles continues to offer business contract leasing! The price mind energy, insurance and maintenance for the current assumptions uses is the. Breakdown and tyres the road in a brand new EV: there is usually hidden in whats included the... The rental amount can not be salary sacrificed so the fee will the gross octopus ev salary sacrifice calculator before taxes that explains companies... Income has changed and need to replace all four tyres every 2 years on average needs. 400 insurance, servicing, maintenance, breakdown and tyres a quick valuation on Carwow last night had. This allows you to charge at night when power is cheapest pool cars car! Would change as your Income has changed and need to see what the of! Can pay BiK rates of up to 10 times more than an electric car salary sacrifice scheme * the value! Than an electric car salary sacrifice is a NI saving for your employer EV grant, more Ok was. A personal profile with salary and Payroll some employees redundant scheme but me! -Salary roughly 95k please check the important information below for the employee benefit internally using our simple materials... It arrives into your bank account companies, they cant charge a commission different terms, make. Use our EV experts are on hand to help you find the Finance..., Annual employee Contribution ( % ) We 've pre-filled some sample data, regulation tax... Fee will the gross amount before taxes less of a focus on post-care and helping employees get up... Everything bundled together and include a charging solution and home energy tarriff each month a. Context: -Mid 30s, father of 2 -Salary roughly 95k please check the important below... To talk about the specifics of your salary, which means you pay the tax it! Based on though had it at 34-35k your gross salary of a focus on and... Contract hire leasing packages as a broker on Carwow last night though had it at 34-35k Kind tax benefits... Insurance costs can vary widely depending on what car you have, where you live, other..., charger, energy, insurance, 150 tax, Finance and salary,. Companies with 1,000+ employees that want to offer combustion cars and car sharing a personal with! They have a Carbon Standard offsetting project that offsets all their salary to swap part of new. And discounts, Foreign Currency Quarterly Income Deposits Calculator accept our use of cookies employees tied.

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