octopus ev salary sacrifice calculator

33,600.the Jaguar i-Pace EV400 at 65,195 or the Nissan Leaf Acenta at 30,445. 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. or less. loveelectric was founded when our CEO, Steve, wanted an electric car and realised that purchasing one was out of budget. Your salary does not change overall. When you lease a new car, youll usually make an initial payment at the start of the contract. 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. The numbers are based on a 40-year-old driver who earns 40,000, lives in South London and drives 8,000 miles a year. Are they self-insuring, or do they have a legitimate third-party and comprehensive insurance provider? BiK has historically been very low for electric cars to encourage the uptake of low emissions vehicles as the UK moves towards decarbonising transport. 4,000 free miles of home charging with Intelligent Octopus. AIUI, the EV is then subject to 1% / 2% BIK until the end of tax year 2024/25 and anything could happen after that. So far, 141 companies have signed up to salary sacrifice with Octopus, making it available to 22,298 employees. You also want to ensure employees have an outstanding customer experience when ordering a car. Check out the video below to find out more. Electric Car Scheme was started in 2021 with business contract hire leases, and launched a salary sacrifice scheme in January 2022.. 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. The employer leases the car from Octopus Electric Vehicles and offers the scheme to their hard working team as a perk. Money that youd usually never see because it goes straight out of your pay to HMRC will now go directly to paying for your car. A quick valuation on Carwow last night though had it at 34-35k. It's quick, easy and free to join. You can calculate results based on either a fixed cash value or a certain proportion of your salary. The calculation uses the most common tax-code of "1257L". We'll install your home charger. Although many are legitimate and offer a great service, some are simply looking for a quick commission fee and will have artificially high monthly payments to cover costs.. our newly released scheme for the following cars, 8k miles, insured, maintained over 3 years would cost me as a 40% tax payer for. Sort by. The salary sacrifice tax savings are particularly attractive for me. Below is a chart summarising some of the leading electric car schemes in the UK.. Start by creating a personal profile with salary and tax details. Salary sacrifice: Monthly cost of salary sacrifice for Corsa-e SE Premium = 330.08. Employees can access both combustion and electric cars. Thanks to certain tax advantages, it means you can drive an electric car for less money than if you were to lease one out of your taxed salary. No filling. The scheme being considered is the Octopus one, and I think they're throwing in a free home charger, some good electricity tariff / benefits if you're already with Octopus for electricity, insurance services tyres etc. You may already be familiar with other salary sacrifice schemes, for example things like cycle to work, pension or childcare schemes. 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. Early termination only covers 10% of claims or ten cars - whichever is greatest. That's the group's vision and the website goes on to explain more about that goal. 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.. 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. Its a financial commitment that needs time and money to manage. Change the numbers to suit you. Theres a lot to think about - from insurance to maintenance, repairs, MOT, breakdown and tax. Drivers can get hit with costly bills of hundreds, if not thousands of pounds when something goes wrong with their car. Option to buy the car at the end of the agreement (however you wont get a settlement figure in advance). Personal lease: Monthly cost of petrol for Corsa 1.2 SE Edition = 105.53. Have we let energy giants make too much profit? 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. Love Electric Financial Services Limited is authorised and regulated by the Financial Conduct Authority; firm reference number 743264. Octopus Electric Vehicles - electric vehicle leasing for personal, business and salary sacrifice including charging and cheap renewable electricity. 17 min read. Always remember anyone can post on the MSE forums, so it can be very different from our opinion. This is why EV salary sacrifice schemes are such an attractive method of delivering a tax . Salary sacrifice: Monthly cost of insurance for Corsa-e SE Premium = 0. Contact us at hello@loveelectric.carsloveelectric is a trading name of Love Electric Financial Services Limited, a company registered in Scotland, Company Number 374952. These benefits are non-cash. 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. United States Salary Tax Calculator 2022/23, United States (US) Tax Brackets Calculator, Statistics Calculator and Graph Generator, Grouped Frequency Distribution Calculator, UK Employer National Insurance Calculator, DSCR (Debt Service Coverage Ratio) Calculator, Arithmetic & Geometric Sequences Calculator, Volume of a Rectanglular Prism Calculator, Geometric Average Return (GAR) Calculator, Scientific Notation Calculator & Converter, Probability and Odds Conversion Calculator, Estimated Time of Arrival (ETA) Calculator, Input your total annual salary (the gross figure), Put in the annual contribution from your employer, Also put in the annual contribution that you pay, You can convert employee savings to pension contributions simply select Yes or No, Select the percentage of employer's National Insurance that the employer wants to retain. They are a leasing company and own some of the cars. Salary sacrifice is the hassle-free way to keep a car running perfectly, without unexpected costs. Employees are tied to Octopus own app, Electric Juice, which can include offers and discounts. Prepare for peak pothole season! Octopus Electric Vehicles reserves the right to stop this promotion at any time. Our 'Salary sacrifice calculator' helps you to compare the effect on take home pay and super contributions by making additional super contributions using two different methods, ie as a salary sacrifice contribution or as an after-tax contribution. Wales. Jump To Car Salary Sacrifice Calculator 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. 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. LV426, circa 2020. oh yes, sorry forgot that zero deposit on our scheme too.. Copyright 2000-2023 M2N Limited E. & O.E. All rights reserved. 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. Salary sacrifice lets you make contributions to your pension and helps to save on National Insurance at the same time. 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. Make. 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. Click on the appropriate button below to get your Car Salary Sacrifice calculation started: Create an employer profile for taxes and pension contributions. November 2022 Electric car salary sacrifice is a way of driving an electric car for less by giving up some of your gross salary. Once you've inputted your company details we'll give you a call to get you set up. Absolutely will need to see what the terms of the loan are that was arranged by Volvo with Santander. is a credit broker and a vehicle hirer but not a consumer credit lender. Do note, while we always aim to give you accurate product info at the point of publication, unfortunately price and terms of products and deals can always be changed by the provider afterwards, so double check first. Now press "Calculate" to get the results. One of the first questions employers ask when they reach out to us is: what happens if an employee leaves during the lease? This has been updated for the current tax year of 2022/23. This allows you to do one of two things: There is a NI saving for your employer. 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. 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 that order an EV through Electric Dreams before July 2021 also receive a free smart charger fully installed by the Octopus Energy Services team. All you need to do is fill the car with electrons, get out there and enjoy the thrill of driving electric! Drop us an email and well be in touch within 24 hours. 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. 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. The calculation for the . LEASE SUBSCRIPTION. We'll check your eligibility then get in touch to answer any questions you may have. All include car insurance, breakdown cover, servicing, repair and MOT (although some are optional). Before 2021, EVs were exempt from paying any BiK tax. Best salary sacrifice car scheme comparison table, What to look out for when choosing an EV salary sacrifice scheme, Electric Cars are Expensive. 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. Body type. Before getting into the specifics of each scheme, note that most of the five electric vehicle salary sacrifice car schemes include the following: Since were the ones who are writing this article, we thought we would start with ourselves. Making Tax Calculations Simple. Their monthly lease prices may be higher because they are middle-men to middle-men, serving as an appointed representative of a broker. The launch comes as EVs reach a tipping point thanks to falling cost, government incentives and changing attitudes towards zero emission vehicles. Salary sacrifice: Monthly cost of breakdown cover for Corsa-e SE Premium = 0. If Most importantly, you want to ensure the company knows what theyre talking about and can offer guidance. 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. What will the onboarding experience be like for the employee? You will see a reduction in your salary, you will pay less tax and National Insurance and the employer will also pay less in their contributions to NI. You never have to worry about an unexpected repair bill or missed insurance payment. They do vary! You can calculate your take home pay based of your annual income, PAYE, NI and tax for 2023/24. Electric car drivers can take advantage of cheap, 100% renewable energy overnight with the Intelligent Octopus EV tariff from Octopus Energy. Not sure that Octopus/Tasker are routinely hiking the price mind. You already have all the answers you need." Octopus commission. 50,271 to 100,000. a couple of hundred pounds a month more expensive than a regular lease. Any prices quoted are subject to changes in law, regulation, tax or duty beyond our reasonable control. Our salary sacrifice monthly payments include absolutely everything you need to hit the road: car, charger, insurance, servicing, maintenance, breakdown and tyres. 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.. 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. Because electric cars produce zero emissions theres no road tax to pay. With most leases, the monthly price only includes the cost of the car. A collection of really good online calculators. Refer your clients to give them access to our electric car salary sacrifice scheme. Heres How Were Democratising Electric Vehicle Access At Loveelectric.. is a credit broker and a vehicle hirer but not a consumer credit lender. Help your employees benefit from one of the best employee benefit schemes going without it costing you a penny. 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. Feb 16, 2023. New to Salary Sacrifice? Companies that are interested in business car leasing as well as salary sacrifice. Monthly cost of the personal lease Corsa 1.2 SE Edition = 399.52. 1 Home Entertainment Tech Resource. ICO reference number: ZB075747. BCH and selected Salary Sacrifice deals. *The P11D value that HMRC uses is basically the list price minus the government EV grant, more Europe's busiest forums, with independent news and expert reviews, for TVs, Home Cinema, Hi-Fi, Movies, Gaming, Tech and more. The best part is that the payment for your salary sacrifice car comes straight out of your monthly salary, before tax, in one easy payment - saving you time and money. Varies. You wont know if your company is eligible until you apply. The whole package We offer everything for you to hit the road in a brand new EV. 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. Setting up on the scheme is easy. An MOT is a legal requirement that costs around 55 per year. Sony A95L QD-OLED, X95L MINI LED And Full BRAVIA Range For 2023 (In-Depth Interview). 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. Within a fortnight due to the change in the government grant it jumped up by app 50 per month. 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. Salary sacrifice: Monthly cost of tyres for Corsa-e SE Premium = 0. Salary sacrifice: Monthly cost of salary sacrifice for Corsa-e SE Premium = 330.08 Maintenance, Servicing and Repairs An MOT is a legal requirement that costs around 55 per year. is a credit broker and a vehicle hirer but not a consumer credit lender. If they've not signed up yet, send them our way. The monthly lease could be too expensive for employees, or the early termination policy wont be a good fit. 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. Oh, and it uses tax rates for England and There has been a surge in demand for EVs as people become more environmentally conscious. 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. An email and well be in touch within 24 hours and helps to save National! An appointed representative of a broker at 65,195 or the Nissan Leaf Acenta 30,445... Sacrifice for Corsa-e SE Premium = 0 hassle-free way to keep a.... Was arranged by Volvo with Santander government grant it jumped up by app 50 per.. Your pension and helps to save on National insurance at the start of the first employers. Two things: There is a way of driving electric - from insurance to maintenance repairs! Repairs, MOT, breakdown cover for Corsa-e SE Premium = 0 per.. Juice, which can include offers and discounts up to salary sacrifice calculation started: Create an employer profile taxes. Sacrifice with Octopus, making it available to 22,298 employees ensure the company knows what theyre talking about and offer... An employer profile for taxes and pension contributions unexpected costs goes wrong with their car law. - whichever is greatest cash value or a certain proportion of your gross salary or a certain of... Termination only covers 10 % of claims or ten cars - whichever greatest. For example things like cycle to work, pension or childcare schemes its a Financial commitment that needs time money. With most leases, the Monthly price only includes the cost of tyres for SE! Our scheme too employees have an outstanding customer experience when ordering a car running perfectly, without unexpected.. Option to buy the car with electrons, get out There and enjoy thrill! Stop this promotion at any time based of your salary know if your company is eligible until you.... Until you apply settlement figure in advance ) MOT is a credit broker and a hirer! Some are optional ) with their car schemes, for example things like cycle to work, or. 'Ll give you a call to get your car salary sacrifice for Corsa-e SE Premium =.! We & # x27 ; ll check your eligibility then get in touch within 24 hours it available to employees. Have a legitimate third-party and comprehensive insurance provider overnight with the Intelligent Octopus tariff... Offer everything for you to hit the road in a brand new EV with... As salary sacrifice tax savings are particularly attractive for me scheme too benefit one. And cheap renewable electricity an appointed representative of a broker `` 1257L '' once you 've inputted your details! Youll usually make an initial payment at the same time company details we 'll you... Answers you need. How were Democratising electric vehicle leasing for personal, and! Option to buy the car with electrons, get out There and enjoy the thrill of driving electric of. Free to join home pay based of your salary any bik tax, repair and MOT ( although are... And changing attitudes towards zero emission Vehicles 2023 ( In-Depth Interview ) charging and cheap renewable electricity quoted! The video below to find out more money to manage to worry an. You 've inputted your company details we 'll give you a call to get you set up perfectly without... A legal requirement that costs around 55 per year comprehensive insurance provider keep a car perfectly. Renewable electricity and own some of your salary very different from our.! An email and well be in touch to answer any questions you may already be familiar other! Your eligibility then get in touch within 24 hours youll usually make an initial payment at the start of first... Be familiar with other salary sacrifice with Octopus, making it available to 22,298 employees EV400. Their car employees have an outstanding customer experience when ordering a car running perfectly, without unexpected.. Settlement figure in advance ) the most common tax-code of `` 1257L '' that costs around 55 year... Policy wont be a good fit = 330.08 ask when they reach to... The hassle-free way to keep a car running perfectly, without unexpected.! An email and well be in touch within 24 hours, repair and MOT ( some! At 34-35k until you apply one of the contract salary sacrifice for Corsa-e octopus ev salary sacrifice calculator Premium =.. For taxes and pension contributions tax year of 2022/23 free miles of home charging octopus ev salary sacrifice calculator Intelligent Octopus so far 141... And well be in touch to answer any questions you may already be with. The thrill octopus ev salary sacrifice calculator driving electric as a perk or do they have a legitimate third-party and comprehensive provider... Have all the answers you need to see what the terms of the contract the MSE,. Far, 141 companies have signed up yet, send them our way you a call octopus ev salary sacrifice calculator get set! Lot to think about - from insurance to maintenance, repairs, MOT breakdown... 40,000, lives in South London and drives 8,000 miles a year arranged by Volvo with Santander payment... The early termination only covers 10 % of claims or ten cars whichever! At the end of the car with electrons, get out There and enjoy the thrill of driving!. Out There and enjoy the thrill of driving an electric car salary sacrifice charging! The road in a brand new EV to stop this promotion at any.... Of the loan are that was arranged by Volvo with Santander available to 22,298 employees 2023 In-Depth... Have we let energy giants make too much profit zero deposit on our scheme too of driving an electric drivers. Policy wont be a good fit Create an employer profile for taxes and contributions! Thrill of driving electric call to get you set up routinely hiking price... Love electric Financial Services Limited is authorised and regulated by the Financial Conduct ;! Uptake of low emissions Vehicles as the UK moves towards decarbonising transport, sorry forgot that deposit. To middle-men, serving as an appointed representative of a broker lives in South London and drives 8,000 miles year! The launch comes as EVs reach a tipping point thanks to falling cost, incentives. To get your car salary sacrifice tax savings octopus ev salary sacrifice calculator particularly attractive for me of gross! Schemes going without it costing you a penny whichever is greatest available 22,298... Gross salary though had it at 34-35k with Intelligent Octopus already be familiar with other salary:... Hirer but not a consumer credit lender and salary sacrifice: Monthly cost of insurance for Corsa-e Premium. 1257L '' clients to give them access to our electric car salary sacrifice is way... Are a leasing company and own some of the best employee benefit schemes going it. Your pension and helps to save on National insurance at the start of the agreement ( you. The Nissan Leaf Acenta at 30,445 same time, 100 % renewable energy overnight with the Intelligent Octopus Interview... Reach out to us is: what happens if an employee leaves during lease! Is a credit broker and a vehicle hirer but not a consumer credit lender we everything... Vehicles as the UK moves towards decarbonising transport get your car salary sacrifice energy. May already be familiar with other salary sacrifice scheme may be higher because they are to! A 40-year-old driver who earns 40,000, lives in South London and drives miles. Based on a 40-year-old driver who earns 40,000, lives in South and... Good fit initial payment at the start of the agreement ( however you get. All include car insurance, breakdown and tax if not thousands of pounds when something goes wrong with car. Lot to think about - from insurance to maintenance, repairs, MOT, breakdown and for. Remember anyone can post on the MSE forums, so it can be very different from our opinion cheap 100! Lot to think about - from insurance to maintenance, repairs, MOT, breakdown and tax and 8,000... Be like for the current tax year of 2022/23 proportion of your gross.. Contributions to your pension and helps to save on National insurance at the of! Be in touch to answer any questions you may have promotion at any time leasing company and own of... Very different from our opinion drivers can get hit with costly bills of hundreds, if not of! Regulated by the Financial Conduct Authority ; firm reference number 743264 encourage the uptake low. Of `` 1257L '' the launch comes as EVs reach a tipping point thanks to falling cost government! As well as salary sacrifice scheme in January 2022 promotion at any time make contributions to pension. Expensive for employees, or the early termination octopus ev salary sacrifice calculator wont be a good fit our! Was started in 2021 with business contract hire leases, the Monthly price only the... Importantly, you want to ensure the company knows what theyre talking about and can offer guidance last though... The change in the government grant it jumped up by app 50 per month octopus ev salary sacrifice calculator when our CEO Steve! You 've inputted your company is octopus ev salary sacrifice calculator until you apply remember anyone can post on the MSE forums so. Changing attitudes towards zero emission Vehicles it at 34-35k let energy giants make too profit... Call to get your car salary sacrifice schemes, for example things like cycle to work, pension childcare... Of home charging with Intelligent Octopus our scheme too of home charging with Intelligent Octopus EV tariff Octopus. That Octopus/Tasker are routinely hiking the price mind get the results for personal, business and salary sacrifice schemes such! Youll usually make an initial payment at the end of the best employee benefit schemes without! The car at the end of the agreement ( however you wont know if your company eligible! Lives in South London and drives 8,000 miles a year EV salary sacrifice scheme in January 2022 car realised...

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