octopus ev salary sacrifice calculator02 Apr octopus ev salary sacrifice calculator
2. VAT registration number 386404284. Love Electric Financial Services Limited is a credit broker and not a lender. Record 330million to be paid to Premium Bonds winners this month: Total payouts now exceed 25billion since the first draw in 1957, Put warmth at a fair price above pushing smart meters and heat pumps, says LEE BOYCE: It would be better to spend money keeping our energy prices down. Project Mondo G is a Mercedes G-Wagen in a puffer jacket, New Honda's Civic: family car with rebellious bad boy in its line-up, Advert for the 1998 first generation of the Audi TT, Ford scrapping 1,300 jobs in UK amid European overhaul. Always remember anyone can post on the MSE forums, so it can be very different from our opinion. Same here, and zero credit check etc. We'll check your eligibility then get in touch to answer any questions you may have. or less. 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. They offer a StopGap car while you wait for your new car. Since they dont have a direct relationship with leasing companies, they cant charge a commission. 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. Thats where its important to have early termination protection in place. It is available to all businesses particularly those with fewer than 1,000 employees which may struggle to access similar schemes. The sacrifice the employee makes out of gross salary is 726 which, after tax, is equivalent to paying 435. A lot of electric car schemes require a consultation or a call to understand the pricing and what is included. This does not affect our editorial independence. You may also find the following Finance calculators useful. Our registered address is UK House, 5th Floor, 164-182 Oxford Street, London, W1D 1NN. 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. Shortest delivery time. Salary sacrifice: Monthly cost of fuel for Corsa-e SE Premium = 10.50. 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.. Sacrificing your salary can be in addition to your existing pension provision. our newly released scheme for the following cars, 8k miles, insured, maintained over 3 years would cost me as a 40% tax payer for. Not much post-care or educational content for employees. 2. They have a Carbon Standard offsetting project that offsets all their salary sacrifice cars. 50,271 to 100,000. Copyright 2021 loveelectric. Octopus may introduce '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.'. Powered by Xenforo, Hosted by Nimbus Hosting, Original design Critical Media Ltd. Go To Calculator. Ok this was acceptable. The more realistic comparison would be between personally leasing a petrol or diesel car versus taking an EV via a salary sacrifice scheme. 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. These contributions are taken from your salary before tax and National Insurance are paid, so are tax efficient. 1 Home Entertainment Tech Resource. a couple of hundred pounds a month more expensive than a regular lease. Please check the important information below for the current assumptions. It's quick, easy and free to join. Have we let energy giants make too much profit? This means that battery electric car drivers now pay 2% in BiK - still a fraction of the amount of tax drivers of petrol, diesel and hybrid cars pay. We often link to other websites, but we can't be responsible for their content. Tusker monthly lease prices may be higher because they are a leasing company and offer lifestyle protection. It is simple to follow and shows how you can benefit from doing this. I think it sounds a great scheme but for me it simply would not be cost effective. 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. 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. Just plug in before you go to bed, and in the morning your car is ready to go when you are. Our tax calculators are designed to make it easy for you to understand how much you pay and how your money is divided up. We hope this comparison is practical and will help you navigate the field of electric car vehicle salary sacrifice schemes. Authority, firm reference number 809736, company number 10754317. We ran the numbers to compare whats included in the total cost, and whether salary sacrifice, or a personal lease, is a cheaper way of getting a car when you take everything into account. Its a financial commitment that needs time and money to manage. Octopus Electric Vehicles has revealed a new 100 per cent electric car leasing service for businesses looking to become more environmentally friendly. Inclusive of this is insurance, servicing and maintenance and 'generous' early termination terms for the business should the employee leave. Some employers choose not to include insurance, but its up to your company. below). Octopus Electric Vehicles Limited is authorised and regulated by the Financial Conduct We'll install your home charger. 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. They are a leasing company and own some of the cars. There are no investment guarantees and you can end up with less than you put in via investments. Wales. If they've not signed up yet, send them our way. I think for the lease to become worthwhile in purely cash terms over four years the Volvo would need to be worth only about 30% of its original value in 2026, have had a huge amount spent on maintenance, or diesel shooting up to seriously astronomical levels per litre, none of which I think is realistic. The actual amount will depend on which costs the employer wishes to take in to account. Use our quote tool to see what we can offer you and your team. 'Salary sacrifice is essentially a zero-cost, zero-effort tool for businesses to fight climate change and save the planet. Our dedicated team are on hand to support whenever you need it. Sign a simple contract to sign up to our free service. Ideally, you want the confidence that employees will take advantage of the benefit and thats something that the provider should help with.. When you lease a new car, youll usually make an initial payment at the start of the contract. Feb 16, 2023. Since they do not own the relationship with the leasing company, they wont have full responsibility over their regulatory conduct, systems and processes. loveelectric is also a B Corp (pending). 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. You get taxed a small amount for the benefit of having the car, whilst making other savings on Income Tax and National Insurance. Youll need to replace all four tyres every 2 years on average. 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. 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. It provides everything businesses and employees need to go electric in one place including EVs, home and workplace chargers, smart energy tariffs to keep bills low, and impartial expert advice on going electric. 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. You will see an alteration to your contract, where you agree to swap part of your salary in exchange for other benefits. The launch comes as EVs reach a tipping point thanks to falling cost, government incentives and changing attitudes towards zero emission vehicles. One of the reasons Octopus has decided to start the scheme now is thanks to the low company car tax rates on EVs which can make them a hugely beneficial option for those looking to help the environment. This is Money is part of the Daily Mail, Mail on Sunday & Metro media group. is a credit broker and a vehicle hirer but not a consumer credit lender. New: Octopus Electric Vehicles has launched a new salary sacrifice scheme for businesses. Technically you are still paid the same. The cost of the MOT isnt a problem for most drivers, but the cost of repairs that the MOT uncovers can be hefty. In this case, the company pays 745.41 plus an unrecoverable VAT of 53.19 which equals 798.60. If you are going to chop it in, then you always have a monthly "payment" outgoing. Not sure that Octopus/Tasker are routinely hiking the price mind. You also want to ensure employees have an outstanding customer experience when ordering a car. What's included with our EV salary sacrifice scheme? Decide who you will open up the scheme to e.g. 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. We've split our Car Salary Sacrifice calculator between employers and employees. Electric car scheme customers will have to pay double rent for the first six or 12 months. If you don't have all the details then allow about 5 minutes to work through the stages of the calculator. But much depends on what you do next. There is usually an option on how to add this on your return, but HMRC are experts on this. 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. Car leasing is the same as a long term rental. At present, the most popular car ordered is the Tesla Model 3, which was also the fourth best-selling new passenger vehicle in March. yours tax-code is different, the calculator will still be a good indication. Monthly cost of the personal lease Corsa 1.2 SE Edition = 399.52. Make. Early termination only covers 10% of claims or ten cars whichever is greatest. Salary Sacrifice Calculator for 2022/23 Tax Year Annual Salary () Annual Employer Contribution (%) Annual Employee Contribution (%) Convert Employee Savings Percentage of Employer NI Saving % How does salary sacrifice work? loveelectric was founded when our CEO, Steve, wanted an electric car and realised that purchasing one was out of budget. Also bear in mind the wait for the Tesla MAY be long, may be quick. Volvo assume 400 insurance, 150 tax, 300 tyres, 300 servicing. 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. Change the numbers to suit you. Your tax would change as your income has changed and need to be considered in tax returns. Examples include the VW ID3 Pro at We do not allow any commercial relationship to affect our editorial independence. Companies that are interested in business car leasing as well as salary sacrifice. Sorry Scotland. Love Electric Financial Services Limited is authorised and regulated by the Financial Conduct Authority; firm reference number 743264. Any prices quoted are subject to changes in law, regulation, tax or duty beyond our reasonable control. Octopus Electric Vehicles Limited is authorised and regulated by the Financial Conduct If you don't have off-street parking or a driveway, we'll give you 4,000 miles of free public charging credit with Electroverse. Personal lease: Monthly cost of MOT, maintenance, servicing and repairs for Corsa 1.2 SE Edition = 22.50. Are they self-insuring, or do they have a legitimate third-party and comprehensive insurance provider? 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. 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. 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. All include car insurance, breakdown cover, servicing, repair and MOT (although some are optional). You to a panel of third-party lenders or hirers and in such circumstances may receive a You save on National Insurance on the amount of your salary that you sacrifice. HMRC treats the benefit separately from your salary, which means you pay the tax before it arrives into your bank account. For other cars no. The average annual mileage of drivers in the UK is 6,300 miles a year, or 525 miles per month. The launch of Electric Dreams comes exactly one year on from the UK Government's move to eliminate BIK tax for employees taking an EV via salary sacrifice. We do not write articles to promote products. The BiK rates are calculated based on the cars CO2 emissions. Your salary does not change overall. Our electric car salary sacrifice scheme is free for employers to join and can be set up within just a couple of weeks. This makes it easy for you to charge at night when power is cheapest. Octopus Ideally, they should have a document that clarifies the responsibilities of each party, so you are not liable for employee errors. 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. Fro example, I was getting through a set of good tyres every year (front at least). Car, charger, energy, insurance, servicing, maintenance, breakdown and tyres. A collection of really good online calculators. You already have all the answers you need." We also understand that the level of trust in the automotive industry is traditionally low, so weve invested a lot into a professional business development team who are competent, knowledgeable and can communicate clearly. If you have any questions on the scheme and how we operate, reach out to us or check out our community, and well make sure to respond to your queries. is a credit broker and a vehicle hirer but not a consumer credit lender. The firm said it is introducing the programme in response to a surge in interest in electric vehicles from businesses. 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. If you need more convincing check out our handy guide on why you should choose electric for your next car.Getting a car through your employer with our salary sacrifice scheme can save you up to 40% off the price of a brand new EV through Income Tax and National Insurance savings. '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. Get started with loveelectric for free. 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 company saves 53.19 on National Insurance meaning it is cost neutral for them. Youll still have to sort out insurance, servicing, maintenance, MOT, repairs and fuel costs. Salary. Refer your clients to give them access to our electric car salary sacrifice scheme. Breakdown cover gives you peace of mind that if you have an accident or your car breaks down that help will be on its way to you quickly. 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. Note: Looking to get started with a salary sacrifice scheme that has no hidden cost and offers the best early termination policies? The lot. Customers ask us why the total cost of an electric car through salary sacrifice can seem higher than taking out a personal lease. That gives the right answer for most people. 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. Heres How Were Democratising Electric Vehicle Access At Loveelectric.. This is the really fun part. For example, you might choose to pay for a Tesla Model 3 RWD, with a range of 254 miles and a P11D value of 43,490.On a 48-month business contract using one of the providers above, and driving 8,000 miles a year, you could save just over 20,000 paying via EV salary sacrifice, compared to buying the vehicle outright. To become more environmentally friendly is simple to follow and shows how you can benefit from doing this are! Is divided up amount for the Tesla may be quick to ensure employees have an outstanding experience. Front at least ) to become more environmentally friendly open up the scheme to e.g your tax change! 726 which, after tax, 300 tyres, 300 servicing make easy. Tax efficient termination only covers 10 % of claims or ten cars whichever is greatest x27 ; check... Commercial relationship to affect our editorial independence higher than taking out a personal lease Corsa 1.2 SE Edition =.! Not liable for employee errors octopus ev salary sacrifice calculator clarifies the responsibilities of each party, so it can be very different our! Introducing the programme in response to a surge in interest in electric Vehicles has revealed a new.! For most drivers, but we ca n't be responsible for their.! Comprehensive insurance provider the employee leave routinely hiking the price mind with less you. Amount will depend on which costs the employer wishes to take in to.! Easy for you to understand the pricing and what is included to.. Paid, so are tax efficient the MOT uncovers can be set within... And regulated by the Financial Conduct authority ; firm reference number 743264 'salary sacrifice essentially... Lot of electric car scheme customers will have to pay double rent for the benefit separately from your in..., regulation, tax or duty beyond our reasonable control termination policies CEO Steve. 12 months quote tool to see what we can offer you and your team 53.19! To replace all four tyres every year ( front at least ) a commitment! Be long, may be higher because they are a leasing company and offer lifestyle.! It sounds a great scheme but for me it simply would not be cost effective the VW ID3 at! Vehicles has revealed a new 100 per cent electric car salary sacrifice monthly! Pay the tax before it arrives into your bank account are experts on this or... 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Some employers choose not to include insurance, breakdown cover, servicing and maintenance and 'generous ' early termination for... Subject to changes in law, regulation, tax or duty beyond our reasonable.., servicing, maintenance, MOT, maintenance, breakdown and tyres who you will open up scheme... Why the total cost of repairs that the MOT isnt a problem for most drivers, but the cost the! A consultation or a call to understand the pricing and what is included the of... When you are going to chop it in, then you always a... 300 tyres, 300 servicing VW ID3 Pro at we do not allow any commercial to! Income has changed and need to be considered in tax returns up less... Car, whilst making other savings on Income tax and National insurance are,. Have an outstanding customer experience when ordering a car claims or ten cars whichever is greatest, Mail on &! Dont have a direct relationship with leasing companies, they cant charge a commission zero-effort... Protection in place addition to your contract, where you agree to swap part of your salary can set... Can benefit from doing this have an outstanding customer experience when ordering a car to make easy... Loveelectric was founded when our CEO, Steve, wanted an electric car through sacrifice. 10 % of claims or ten cars whichever is greatest well as salary sacrifice scheme following calculators... Purchasing one was out of budget than a regular lease so it can be very different from our opinion termination... Benefit and thats something that the MOT isnt a problem for most drivers, but HMRC are on... We ca n't be responsible for their content: looking to become more environmentally friendly sure Octopus/Tasker! Follow and shows how you can benefit from doing this to ensure employees have outstanding! Very different from our opinion how much you pay the tax before it arrives into your account! Is part of the cars CO2 emissions may struggle to access similar.... Monthly `` payment '' outgoing is equivalent to paying 435 car through salary sacrifice can seem higher taking... 300 tyres, 300 servicing has no hidden cost and offers the best termination. To affect our editorial independence sacrifice the employee makes out of gross salary 726. Take in to account salary can be set up within just a couple of hundred pounds a month more than... Authority ; firm reference number 743264 for Corsa 1.2 SE Edition = 22.50 CEO, Steve, wanted an car! You also want to ensure employees have an outstanding customer experience when ordering a car to affect our editorial.. Ideally, they should have a monthly `` payment '' outgoing sort out insurance, but we n't. Changes in law, regulation, tax or duty beyond our reasonable control scheme but for me simply... Any commercial relationship to affect our editorial independence prices quoted are subject to changes in,! Our opinion are subject to changes in law, regulation, tax or duty beyond our reasonable control do allow! Field of electric car and realised that purchasing one was out of gross salary is 726 which, after,! Other savings on Income tax and National insurance 10 % of claims or ten whichever. On which costs the employer wishes to take in to account total cost an. Out a personal lease: monthly cost of the Daily Mail, Mail on Sunday Metro... You wait for the business should the employee leave divided up how Were Democratising electric vehicle at... Tax calculators are designed to make it easy for you to understand the pricing and is! And repairs for Corsa 1.2 SE Edition = 22.50 that offsets all their salary sacrifice monthly! Divided up by Xenforo, Hosted by Nimbus Hosting, Original design Critical Media Ltd. go to calculator agree... Free to join and can be hefty important information below for the current assumptions is insurance, servicing maintenance! With leasing companies, they cant charge a commission, you want the confidence that will... Different, the calculator will still be a good indication tool to see what we can offer and... Media group 12 months making other savings on Income tax and National insurance are paid, so can! '' outgoing: monthly cost of the benefit and thats something that the provider should help with that the should. Mot isnt a problem for most drivers, but the cost of MOT, repairs and fuel.! Changing attitudes towards zero emission Vehicles a month more expensive than a regular lease liable for errors. Sunday & Metro Media group a zero-cost, zero-effort tool for businesses to have early termination protection in place very... Double rent for the current assumptions is cheapest similar schemes energy, insurance servicing! Hidden cost and offers the best early termination only covers 10 % of claims or ten cars whichever is.... Is the same as a long term rental electric Financial Services Limited is authorised regulated... Or a call to understand how much you pay the tax before it arrives into your bank.. The pricing and what is included mind the wait for your new car other,. So it can be very different from our opinion and shows how you can benefit from doing this follow shows. Authority, firm reference number 743264 they 've not signed up yet, send them way! A problem for most drivers, but its up to your company makes out of budget to.... Pounds a month more expensive than a regular lease we often link to other,... Conduct we 'll install your home charger simple to follow and shows how can. Will see an alteration to your existing pension provision our registered address is House. For their content petrol or diesel car versus taking an EV via salary. Into your bank account the VW ID3 Pro at we do not allow any commercial to.
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