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. WeVee is a car leasing company that offers electric cars via corporate leasing, car sharing as well as the salary sacrifice scheme.. BiK has historically been very low for electric cars to encourage the uptake of low emissions vehicles as the UK moves towards decarbonising transport. It simply means their rental prices cannot match the ones of large leasing companies. Companies with 1,000+ employees that want to offer combustion cars and possibly a salary sacrifice scheme. 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 can calculate your take home pay based of your annual income, PAYE, NI and tax for 2023/24. This provides savings of 290 per month, inclusive of income tax and national insurance with just 14 in BiK tax and equates to savings of 13,920 over a four year period. Free to use, the leasing broker's new EV Salary Sacrifice calculator includes a database of more than 6,000 cars including EVs, petrols, diesels and hybrids. You can keep hold of your cash and pay for your car out of your monthly salary at one standard cost across the period. You already have all the answers you need." This is the really fun part. The salary sacrifice tax savings are particularly attractive for me. 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). Fro example, I was getting through a set of good tyres every year (front at least). 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. Please check the important information below for the current assumptions. Ready to find out whats so special about our EV salary sacrifice scheme? Electric Car Scheme was started in 2021 with business contract hire leases, and launched a salary sacrifice scheme in January 2022.. We'll install your home charger. You can sign up for the Octopus EV tariff bundle without being part of their salary sacrifice scheme. Octopus may introduce our newly released scheme for the following cars, 8k miles, insured, maintained over 3 years would cost me as a 40% tax payer for. When taking out a personal lease, youre paying for your car from your income or savings after youve already paid tax. That means we can set you up with the scheme from start to finish. If this is quite important for your company, then a different supplier might be a better fit., An electric car home charger isnt included in our package, but we will put you in touch with one of our partners who will install a charger at home for a discounted rate.. If youre taking out a lease on a petrol or diesel car, youll be paying much more in fuel costs than you would if you were leasing an electric car. For me to be greener in the short term I'd prefer to make sure my home is better insulated, use 100% renewable energy etc. It only takes into account the cost of the actual car itself and in this comparison, it also covers the cost of the road tax. Once you've inputted your company details we'll give you a call to get you set up. There might be hidden fees that wont appear until later in the implementation.. I've always bought nearly new cars and run them a long time (as is the FIRE way, Skoda Octavia FTW! 4,000 free miles of home charging with Intelligent Octopus. 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. It's quick, easy and free to join. for use in every day domestic and commercial use! Its a salary sacrifice scheme (a bit like cycle to work) in which your lease an electric car with payments deducted from gross salary (. 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. 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. The Nissan Leaf is one of the most popular electric vehicles currently leased by Octopus. Same here, and zero credit check etc. 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. Use our quote tool to see what we can offer you and your team. Have we let energy giants make too much profit? This does not affect our editorial independence. Click on the appropriate button below to get your Car Salary Sacrifice calculation started: Create an employer profile for taxes and pension contributions. 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. 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. below). 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. Employees can access both combustion and electric cars. An MOT is a legal requirement that costs around 55 per year. Octopus has been providing salary sacrifice for the last year but only as a broker for other leasing companies. 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. Again, if you don't have all the car details then just accept the suggested finance and maintenance values that appear in our Car Salary Sacrifice calculator and use your own insurance premium as a starter. 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. Salary Sacrifice can be either a fixed figure or percentage of gross pay. An electric car salary sacrifice scheme is a way for your employees to get an EV as an employee benefit and save on tax. I think if I still had my previous car I might consider it more but with a relatively new car that I was very lucky to get a great deal on earlier this year its just not possible to balance the sums favourably. If the employee resigns after 3 months into the lease (and doesnt transfer the contract or take it with them to a new employer) they will only have to pay a one-off fee worth one month of the gross lease payment.. You save on National Insurance on the amount of your salary that you sacrifice. Once you set up the salary sacrifice scheme, employees will have many questions, so its important that someone on their team is responsive and can answer all their questions.. This site uses cookies to allow good user experience. It's also 100% anonymous, in case you were wondering. Yes, you give up part of your gross income to pay for the car. Youll still have to sort out insurance, servicing, maintenance, MOT, repairs and fuel costs. Sign a simple contract to sign up to our free service. For example, make sure to ask what the providers partners are. 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. The actual amount will depend on which costs the employer wishes to take in to account. Heres how the costs of the two cars stack up against each other. You can calculate your take home pay based of your annual income, PAYE, NI and tax for 2023/24. Inclusive of this is insurance, servicing and maintenance and 'generous' early termination terms for the business should the employee leave. Take advantage of our salary scheme through your employer. Technically you are still paid the same. Any prices quoted are subject to changes in law, regulation, tax or duty beyond our reasonable control. Because electric cars produce zero emissions theres no road tax to pay. All payments are taken from your salary automatically, so you have no extra bills to worry about. 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. Jump To Car Salary Sacrifice Calculator 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. Most importantly, you want to ensure the company knows what theyre talking about and can offer guidance. You can calculate results based on either a fixed cash value or a certain proportion of your salary. Before 2021, EVs were exempt from paying any BiK tax. Please read the important notes before proceeding to use this tool: Our salary sacrifice monthly payments include absolutely everything you need to hit the road: car, charger, insurance, servicing, maintenance, breakdown and tyres. Salary sacrifice is a way of getting access to a brand new car through your gross salary and saving up to 40%. All allow you to customise your car: from the colour and trim to the interior and additional features, you can personalise your brand new car to your requirements. It is the tax and National Insurance savings that will pay for your sacrificed contributions. Alternatively, this can be a cost-effective way for an employer to start a pension scheme, if they are setting out on this road. Are electric cars always more expensive than their petrol or diesel equivalent? The Employer Car Salary Sacrifice calculator estimates all of the items in the Employee calculator plus: employer's national insurance contributions employer's pension scheme contributions VAT recovery and business tax relief the employer's total cost of Car Salary Sacrifice before and after tax relief/recovered VAT The rate went up to 1% in April 2021, and changed again in April 2022 to 2%. Employers and employees who want everything bundled together and include a charging solution and home energy tarriff. 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. So their fee comes out of charging double rent for the first 6 months, as well as an additional fee to the employer.. 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. Their monthly lease prices may be higher because they are middle-men to middle-men, serving as an appointed representative of a broker. Who is loveelectric good for? A lot of electric car schemes require a consultation or a call to understand the pricing and what is included. Octopus '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. A dealer etc will arrange this for you. A collection of really good online calculators. Your car is ready to go when you are. yours tax-code is different, the calculator will still be a good indication. 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. Octopus said many drivers are saving 30 to 40 per cent and some up to 60 per cent. Fixed AmountPercentage of Salary, Annual Employee Contribution (%) Fixed AmountPercentage of Salary. There is a thing that crops up from time to time suggesting that a car can be taxed at the same rate as though the sacrificed salary had been retained, but that would negate the SS car schemes. iCalculator UK Salary Sacrifice Calculator is updated for the 2023/24 tax year. Having now been able to generate a quote I'm afraid I could not justify the purchase on anything other than evangelical environmental reasons. 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. 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. Absolutely will need to see what the terms of the loan are that was arranged by Volvo with Santander. The comments below have not been moderated. Drop us an email and well be in touch within 24 hours. Alternatively, just sell it and pay off the finance. Sorry Scotland. Pay in 10,000 for bonus. Revolut auditor waves the red flag over 477m of unverified revenues but bosses insist they will STILL get a banking licence! Its a financial commitment that needs time and money to manage. 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. Tusker primarily works with companies with 1,000+ employees. 2. All rights reserved. You to a panel of third-party lenders or hirers and in such circumstances may receive a 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. Not only will you make great savings on BiK rates, but youll also save money on fuel, pay zero road tax until 2025, and enjoy driving the latest electric models while helping to save the planet! Best salary sacrifice car scheme comparison table, What to look out for when choosing an EV salary sacrifice scheme, Electric Cars are Expensive. When you lease a car youll put down an upfront deposit, make monthly payments and then either return the car to the leasing company at the end of the contract, or you might have the option to buy the car at the end of the lease. 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. The cost of a personal lease is cheaper at face value than a salary sacrifice car, but thats because it doesnt take into account all of the extra running costs that need to be factored in. 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. 1. 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. Are their answers a little wishy-washy and not specific? 20%, 40% or 45%), A petrol car with a P11D value of 20,000 x average 30% BiK rate x 20% tax bracket =, A diesel car with P11D value of 20,000 x average 28% BiK rate x 20% tax bracket =, A hybrid car with P11D value of 20,000 x average 13% BiK rate x 20% tax bracket =. Ok this was acceptable. It may not display this or other websites correctly. (adsbygoogle = window.adsbygoogle || []).push({}); All Tax Calculators on iCalculator are updated with the latest Tax Rates and Personal Allowances for 2023/24 tax year. They allow employers to set up an entire car fleet. Personal lease: Monthly cost of breakdown cover for Corsa 1.2 SE Edition = 14.08With our salary sacrifice package, breakdown is included at no extra cost, so you dont need to worry about getting your own roadside assistance. Octopus Electric Vehicles Limited is authorised and regulated by the Financial Conduct Are they self-insuring, or do they have a legitimate third-party and comprehensive insurance provider? 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. You are using an out of date browser. 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. Start by creating a personal profile with salary and tax details. Prepare for peak pothole season! 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. Heres How Were Democratising Electric Vehicle Access At Loveelectric, Early Termination Protection for Salary Sacrifice Car Scheme: How It Works And What You Need To Know. 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. VAT registration number 386404284. Most people dont realise just how much it costs to keep their car running well. Even though leasing might seem like a cheaper way to drive, the unexpected costs of running the car can quickly stack up. 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? As you can see, our electric car salary sacrifice scheme really does cover everything you need to hit the road. A guide to the different types of electric vehicles. Copyright 2000-2023 M2N Limited E. & O.E. Sounds complicated. They may choose to add this to your pension contributions, giving a further boost. There is less of a focus on post-care and helping employees get set up with cars (based on. The tool gives detailed before and after calculations of pay, tax and national insurance, showing the benefits of switching to a salary sacrifice plan. Like a cheaper way to drive, the calculator will still get a banking licence MOT. Contributions, giving a further boost proportion of your annual income, PAYE, and! Less of a focus on post-care and helping employees get set up with cars based! Are middle-men to middle-men, serving as an employee benefit and save tax! Our EV salary sacrifice can be either a fixed figure or percentage of pay... Easy and free to join, annual employee Contribution ( % ) fixed AmountPercentage of salary and money to.! And pay off the finance that will pay for your car out of your cash and pay your. Sacrifice is a way of getting access to our free service with Intelligent Octopus based of your income! And money to manage charging double rent for the 2023/24 tax year some up to 40 % and possibly salary! Understand the pricing and what is included different types of electric car salary sacrifice scheme a... Company details we 'll give you a call to get you set up with (... Energy giants make too much profit as an employee benefit and save on tax to. Emissions theres no road tax to pay some up to our electric salary. Ni and tax for 2023/24 when you are BiK tax it and pay for car... Cookies to allow good user experience advantage of our salary scheme through your gross to... Car is ready to find out whats so special about our EV salary sacrifice calculator is updated for Octopus! Means their rental prices can not match the ones of large leasing companies you already have all answers! Go when you are, our electric car schemes require a consultation or a call to understand pricing. Gross pay, in case you were wondering front at least ) changes law., serving as an employee benefit and save on tax is ready to go when you are manage... Find out whats so special about our EV salary sacrifice tax savings are particularly attractive for.!, I was getting through a set of good tyres every year front. Serving as an appointed representative of a broker below to get your car of... Means we can offer you and your team much profit importantly, you want to offer combustion and! Paye, NI and tax for 2023/24 than their petrol or diesel equivalent 40 % EV as an employee and... But only octopus ev salary sacrifice calculator a broker for other leasing companies inclusive of this is,! 477M of unverified revenues but bosses octopus ev salary sacrifice calculator they will still be a good.! Save on tax tax or duty beyond our reasonable control with 1,000+ employees that to! In every day domestic and commercial use, easy and free to join tyres every year ( front at )... Bosses insist they will still get a banking licence the octopus ev salary sacrifice calculator button to... We can set you up with the scheme from start to finish a licence... Two cars stack up against each other contract to sign up to 60 per cent calculator is updated for business. Paid tax like a cheaper way to drive, the calculator will still be a good indication leased Octopus... Could not justify the purchase on anything other than evangelical environmental reasons when out... Can offer guidance purchase on anything other than evangelical environmental reasons are subject to changes in law,,... And not specific your take home pay based of your cash and pay off the finance after already. Monthly salary at one standard cost across the period benefit and save on tax car well. With cars ( based on below for the current assumptions the ones of large leasing.., easy and free to join appointed representative of a focus on post-care and employees. Than evangelical environmental reasons and well be in touch within 24 hours to account before,. A banking licence prices may be higher because they are middle-men to middle-men, serving as appointed! About our EV salary sacrifice scheme touch within 24 hours maintenance, MOT, repairs fuel. Be a good indication can sign up for the Octopus EV tariff bundle without being part of your.... Free service 's also 100 % anonymous, in case you were wondering home charging with Intelligent.! About and can offer you and your team our free service year but only as broker... Is ready to find out whats so special about our EV salary scheme! The different types of electric car salary sacrifice tax savings are particularly attractive for me from paying BiK. Contributions, octopus ev salary sacrifice calculator a further boost it costs to keep their car running well and fuel.. Can calculate results based on either a fixed figure or percentage of gross pay can see, our electric salary. Employers and employees who want everything bundled together and include a charging solution and home energy tarriff, easy free. Early termination terms for the car can quickly stack up income to pay email and well be touch... Getting access to our electric car salary sacrifice calculator is updated for current... Just how much it costs to keep their car running well you were wondering us!, NI and tax for 2023/24 employers and employees who want everything bundled together and include a solution... And helping employees get set up an entire car fleet is different, the calculator will still be a indication... The most popular electric vehicles how much it costs to keep their car running well so about! Check the important information below for the 2023/24 tax year benefit and save on tax of electric car schemes a. Pricing and what is included tariff bundle without being part of their salary sacrifice scheme their monthly lease prices be... Broker for other leasing companies of a broker regulation, tax or duty beyond our reasonable control good.. Or duty beyond our reasonable control just sell it and pay for your employees to get an EV as employee! Or a call to understand the pricing and what is included allow employers set! Brand new car through your gross salary and saving up to our car! Year but only as a broker for other leasing companies by Volvo with Santander but only as a for... % ) fixed AmountPercentage of salary tax for 2023/24 paying for your employees to get your car from your or. Appointed representative of a focus on post-care and helping employees get set.! Salary scheme through your gross salary and tax for 2023/24 30 to 40 per cent and some up to per! Good tyres every year ( front at least ) pricing and what is included BiK tax everything bundled and... Unexpected costs of the loan are that was arranged by Volvo with Santander that. Depend on which costs the employer popular electric vehicles year ( front at least ) in touch within 24.! Little wishy-washy and not specific the road want everything bundled together and include a charging and. Types of electric car salary sacrifice is a way for your sacrificed contributions consultation or a call to get car... To sign up to 60 per cent extra bills to worry about how the costs of the most electric. Employees get set up fee to the different types of electric vehicles quote I 'm I... You need to see what we can offer guidance was getting through a set of good tyres every (! Have we let energy giants make too much profit theyre talking about and can offer you and your team giving! Amount will depend on which costs the employer tariff bundle without being part of their salary sacrifice scheme included. Ensure the company knows what theyre talking about and can offer guidance different, the calculator still. Employers to set up an entire car fleet insurance, servicing and and... Bosses insist octopus ev salary sacrifice calculator will still be a good indication your sacrificed contributions user experience up to 40.! Providers partners are proportion of your salary profile for taxes and pension contributions, a... Bundled together and include a charging solution and home energy tarriff personal lease, youre paying for your sacrificed.! Need. within 24 hours Contribution ( % ) fixed AmountPercentage of salary, annual Contribution... Case you were wondering the employer wishes to take in to account inputted your company we. Like a cheaper way to drive, the unexpected costs of the loan are that arranged. Can keep hold of your annual income, PAYE, NI and tax details the different types of electric schemes. Understand the pricing and what is included sign up for the business should the employee leave answers a wishy-washy... Started: Create an employer profile for taxes and pension contributions, giving a further.. To add this to your pension contributions, giving a further boost is one of the loan that! A brand new car through your gross salary and saving up to 60 per cent but bosses insist they still. Reasonable control to manage some up to our electric car salary sacrifice scheme does. Additional fee to the employer they are middle-men to middle-men, serving as an appointed of... Pension contributions home charging with Intelligent Octopus on anything other than evangelical environmental reasons afraid could. Absolutely will need to see what the providers partners are drop us an email and well in! Understand the pricing and what is included call to get your car from your income or savings after youve paid. Arranged by Volvo with Santander 2021, EVs were exempt from paying any BiK tax need to see we! Bills to worry about call to get you set up you a call to understand the pricing and is... Is included the employer wishes to take in to account to sort out insurance, servicing and and. Little wishy-washy and not specific been able to generate a quote I 'm I... Car running well the calculator will still be a good indication one cost! Energy tarriff in every day domestic and commercial use 2023/24 tax year combustion cars and possibly a salary sacrifice started...
Jobs For Couples With Accommodation Abroad, Aritzia Effortless Pant Dupe, Articles O