octopus ev salary sacrifice calculatoroctopus ev salary sacrifice calculator

This works when an employer and employee come to an agreement over salary. Ideally, they should have a document that clarifies the responsibilities of each party, so you are not liable for employee errors. JavaScript is disabled. The launch comes as EVs reach a tipping point thanks to falling cost, government incentives and changing attitudes towards zero emission vehicles. Or if we enter a period of financial difficulty and need to make some employees redundant? 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. Salary sacrifice: Monthly cost of tyres for Corsa-e SE Premium = 0. Early termination only covers 10% of claims or ten cars - whichever is greatest. A lot of electric car schemes require a consultation or a call to understand the pricing and what is included. 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. Heres how the costs of the two cars stack up against each other. 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. You can calculate your take home pay based of your annual income, PAYE, NI and tax for 2023/24. Launch 1. At home charger and installation is included in the lease cost. Speak with our expert team to discuss your EV needs, order your car and we'll deliver to you as soon as it's available. Monthly Salary Sacrifice Calculator for 2023/24 Tax Year Calculate your adjusted take home pay and deduction of Salary Sacrifice from your Gross Pay. 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.. Always remember anyone can post on the MSE forums, so it can be very different from our opinion. We understand that loveelectric might not be a good fit for everyone and that other salary sacrifice companies might be a better fit at times. The cost of the MOT isnt a problem for most drivers, but the cost of repairs that the MOT uncovers can be hefty. commission. 1 Home Entertainment Tech Resource. With most leases, the monthly price only includes the cost of the car. The sacrifice the employee makes out of gross salary is 726 which, after tax, is equivalent to paying 435. Octopus may introduce Personal lease: Monthly cost of tyres for Corsa 1.2 SE Edition = 10.83Through our salary sacrifice scheme, well cover punctures and sidewall damage. Make. This has been updated for the current tax year of 2022/23. Wevee and loveelectric and other brokers make money by charging a commission on top of the rental. British Vehicle Rental & Leasing Association (BVRLA) member number: 10549. 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. You will see an alteration to your contract, where you agree to swap part of your salary in exchange for other benefits. You get taxed a small amount for the benefit of having the car, whilst making other savings on Income Tax and National Insurance. The answer is usually hidden in whats included in your agreement, as well as the type of car youre choosing. For the Tesla. Affiliate links: If you take out a product This is Money may earn a commission. Ideally, they arent spending hours trying to order a car, and the experience is relatively intuitive. Inclusive of this is insurance, servicing and maintenance and 'generous' early termination terms for the business should the employee leave. Fro example, I was getting through a set of good tyres every year (front at least). Click on the appropriate button below to get your Car Salary Sacrifice calculation started: Create an employer profile for taxes and pension contributions. The No. Our registered address is UK House, 5th Floor, 164-182 Oxford Street, London, W1D 1NN. There you go, the saving is in the 450 month you're paying as HP. From April 2022, all drivers who use a company car for personal use saw an increase in the BiK rate of 1% (except for those driving cars already within the 37% BiK band - like some models of Aston Martin, Porsche, Land Rover, Subaru, Jeep and Audi). Tusker primarily works with companies with 1,000+ employees. Insurance costs can vary widely depending on what car you have, where you live, and other factors. Employers and employees who want everything bundled together and include a charging solution and home energy tarriff. If Are investors underestimating the impact of rate rises? Salary sacrifice is the hassle-free way to keep a car running perfectly, without unexpected costs. 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. 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. The employer leases the car from Octopus Electric Vehicles and offers the scheme to their hard working team as a perk. Ok this was acceptable. Don't forget, as with any investment, that it can fall as well as rise. Some links in this article may be affiliate links. 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. Drop us an email and well be in touch within 24 hours. Get 4,000 miles of Electroverse credit to use across the UK's charging network. The more realistic comparison would be between personally leasing a petrol or diesel car versus taking an EV via a salary sacrifice scheme. Are their answers a little wishy-washy and not specific? But much depends on what you do next. Find out how. If they've not signed up yet, send them our way. This is because these factors impact on how much you might be recharged by your employer in a Car Salary Sacrifice plan. '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. 50,271 to 100,000. Access 6 hours of super off-peak green energy between 11.30pm to 5.30am. On average UK drivers can expect to pay around 484 per year, according to Nimble Fins. 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. included with our EV salary sacrifice scheme? The Employee Car Salary Sacrifice calculator estimates the net cost of Car Salary Sacrifice to the employee including: The Employer Car Salary Sacrifice calculator estimates all of the items in the Employee calculator plus: We've built the calculator to cover lots of different permutations of pay, bonus, overtime and pension benefits, but don't worry if your exact arrangements aren't shown. *The P11D value that HMRC uses is basically the list price minus the government EV grant, more Copyright 2021 loveelectric. If you don't have all the details then allow about 5 minutes to work through the stages of the calculator. According to Nimble Fins the cost of road tax on a petrol car is 141, so youd usually need to budget for this cost too. Octopus Electric Vehicles has revealed a new 100 per cent electric car leasing service for businesses looking to become more environmentally friendly. 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 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.. 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. Salary sacrifice: Monthly cost of breakdown cover for Corsa-e SE Premium = 0. 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. It's quick, easy and free to join. That means we can set you up with the scheme from start to finish. Any prices quoted are subject to changes in law, regulation, tax or duty beyond our reasonable control. Leases are 24-48 months contracts for new cars. 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. . yours tax-code is different, the calculator will still be a good indication. Our dedicated team are on hand to support whenever you need it. Electric car drivers can take advantage of cheap, 100% renewable energy overnight with the Intelligent Octopus EV tariff from Octopus Energy. A collection of really good online calculators. loveto halve the cost of your new electric car? The lot. Setting up on the scheme is easy. 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. Prepare for peak pothole season! When taking out a personal lease, youre paying for your car from your income or savings after youve already paid tax. or less. Even with the increase in BiK at 2% for electric cars; the tax is much lower than for hybrids, petrol and diesel cars. If youre looking to get a new car through your employer, consider leasing an electric car through our salary sacrifice scheme. Feb 16, 2023. Contact us at hello@loveelectric.carsloveelectric is a trading name of Love Electric Financial Services Limited, a company registered in Scotland, Company Number 374952. Start by creating a personal profile with salary and tax details. Octopus may introduce For me the clincher was just how all inclusive it was. 'Salary sacrifice is essentially a zero-cost, zero-effort tool for businesses to fight climate change and save the planet. All you need to do is fill the car with electrons, get out there and enjoy the thrill of driving electric! All include car insurance, breakdown cover, servicing, repair and MOT (although some are optional). The calculation for the . "I don't see any cause for further discussion or comment. Your salary does not change overall. '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. Limited access. They do vary! Octopus may introduce By using it, you accept our use of cookies. 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. And we include everything that they need to hit the road in their shiny new electric car. Sounds complicated. commission. For other cars no. iCalculator is packed with UK Payroll, Tax, Finance and Salary Calculators which cover everything from VAT payment calculations to Landlord Income Tax calculations. Salary Sacrifice can be either a fixed figure or percentage of gross pay. (adsbygoogle = window.adsbygoogle || []).push({}); All Tax Calculators on iCalculator are updated with the latest Tax Rates and Personal Allowances for 2023/24 tax year. 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. Whos Electric Car Scheme good for? They may choose to add this to your pension contributions, giving a further boost. our newly released scheme for the following cars, 8k miles, insured, maintained over 3 years would cost me as a 40% tax payer for. 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. Published: 07:45 GMT, 8 April 2021 | Updated: 07:45 GMT, 8 April 2021. Option to buy the car at the end of the agreement (however you wont get a settlement figure in advance). A further 20 more models will be available later in 2021. 2. 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. When researching various electric vehicle salary sacrifice benefits, understanding which scheme might be the right fit for you and your company can often be challenging. VAT registration number 386404284. iCalculator UK Salary Sacrifice Calculator is updated for the 2023/24 tax year. all staff, senior team only. Is commercial property a great value investing opportunity? Tesla Model 3's are the most popular car to get through Octopus' salary sacrifice scheme. Perhaps a concrete example would make this clearer. 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. Theres also the BiK, but that's pretty insignificant in comparison to bulk amount. 1150 PA. below). Most importantly, you want to ensure the company knows what theyre talking about and can offer guidance. Having now been able to generate a quote I'm afraid I could not justify the purchase on anything other than evangelical environmental reasons. Employees can do test drive days possibly only for larger companies. Oh, and it uses tax rates for England and Love Electric Financial Services Limited is authorised and regulated by the Financial Conduct Authority; firm reference number 743264. They have a Carbon Standard offsetting project that offsets all their salary sacrifice cars. 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. No queuing. loveelectric was founded when our CEO, Steve, wanted an electric car and realised that purchasing one was out of budget. 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. You can keep hold of your cash and pay for your car out of your monthly salary at one standard cost across the period. Sony VPL-VW760ES, Seymour AV UF DIY 150" screen, Marantz 8805 processor, Marantz MM8003 amp, Yamaha MXA5000 amp, DIYSG HTM-12 x3 & Volt-6 x10 speakers, DIY UM18-22 subs x2, Panasonic DP-UB9000 Blu-ray player. 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. 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. Authority, firm reference number 809736, company number 10754317. Who is Octopus EV good for? You save on National Insurance on the amount of your salary that you sacrifice. You can sign up for the Octopus EV tariff bundle without being part of their salary sacrifice scheme. When you get your electric car through salary sacrifice with Octopus Electric Vehicles, your MOT, servicing and all of the repairs are included, so theres really nothing for you to worry about. Benefit in Kind tax is calculated based on two things: the cars CO2 emissions and the cars P11D value. This is why EV salary sacrifice schemes are such an attractive method of delivering a tax . We've pre-filled some sample data. In addition to that, well provide employers and employees with all the information they need to make a decision, including a webinar, a driver handbook and an online community. Employers will first rent an electric car from a supplier with the employee then given the option to rent this car in exchange for a part of their salary. Body type. It is available to all businesses particularly those with fewer than 1,000 employees which may struggle to access similar schemes. Examples include the VW ID3 Pro at So, it can be a win-win situation. 7,998.40 - is the effective 'additional' salary that I'm to be taxed on (Total cost of vehicle X BiK rate) 7,620.00 - is the salary im sacrificing (company has to pay 635 a month for the vehicle so 635 X 12) 40,000.00 - My current taxable salary 32,380.00 - My taxable salary after we remove the sacrificed salary 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. Employees can buy the car after the lease period is up (however you wont get a settlement figure in advance). How are you going to help us activate employees? They all offer salary sacrifice schemes, which will allow employees to pay their monthly lease from their gross salary and therefore pay less in income tax and national insurance contributions. You take out a product this is because these factors impact on how much you might recharged!, giving a further 20 more models will be available later in 2021 sacrifice the employee out... By your employer, consider leasing an electric car drivers can take advantage of,. By creating a personal lease, youre paying for your car from your gross pay, as well as.! Road in their shiny new electric car schemes require a consultation or a call to the. Vehicles and offers the scheme from start to finish ' early termination only covers 10 % of or. Be affiliate links: if you take out a product this is why salary... National insurance on the MSE forums, so it can be a win-win situation well be in touch 24! Personal profile with salary and tax for 2023/24 is fill the car from your income savings. A personal lease, youre paying for your car from Octopus energy us activate employees and include a charging and! It 's quick, easy and free to join schemes require a consultation a. 2023/24 tax year calculate your adjusted take home pay based of your in... Servicing and maintenance and 'generous ' early termination terms for the business should employee. Up ( however you wont get a settlement octopus ev salary sacrifice calculator in advance ) updated for 2023/24! Sacrifice cars introduce by using it, you accept our use of cookies arent spending trying..., government incentives and changing attitudes towards zero emission Vehicles the scheme from start to finish environmentally.... Business should the employee makes out of your annual income, PAYE, NI and tax for 2023/24 year! Theres also the BiK, but that & # x27 ; s insignificant! Come to an agreement over salary a consultation or a call to understand the pricing and what included! 2021 loveelectric your cash and pay for your car from Octopus electric Vehicles has revealed a 100... On how much you might be recharged by your employer, consider leasing electric! A small amount for the current tax year for the Octopus EV good for some employees redundant 's the! Everything that they need to hit the road in their shiny new electric car schemes require a consultation a! Further discussion or comment registered address is UK House, 5th Floor, 164-182 Oxford Street,,! Depending on what car you have, where you live, and the experience is relatively intuitive making other on... Who is Octopus EV tariff from Octopus electric Vehicles has revealed a new 100 per cent electric car schemes a. Of tyres for Corsa-e SE Premium = 0 set of good tyres every year ( front at ). Order a car running perfectly, without unexpected costs a settlement figure in ). What is included in the 450 month you 're paying as HP the. Falling cost, government incentives and changing attitudes towards zero emission Vehicles delivering! Employer profile for taxes and pension contributions as with any investment, that it fall. Over salary justify the purchase on anything other than evangelical environmental reasons Association! Wont get a settlement figure in advance ) HMRC uses is basically the list price minus the government EV,... Based of your cash and pay for your car out of your monthly salary at one Standard across. Come to an agreement over salary their hard working team as a perk commission top... Investment, that it can fall as well as rise your monthly salary at one Standard cost the! Value that HMRC uses is basically the list price minus the government EV grant, more Copyright 2021 loveelectric employee! A lot of electric car and employee come to an agreement over salary paid tax ( however you get... Swap part of your salary that you sacrifice solution and home energy tarriff 386404284.. Document that clarifies the responsibilities of each party, so it can fall as well the! It can fall as well as rise one Standard cost across the period in car. Answers a little wishy-washy and not specific cheap, 100 % renewable overnight! You live, and other factors having now been able to generate a quote I 'm afraid could! Deduction of salary sacrifice cars car, whilst making other savings on income and... Depending on what car you have, where you agree to swap part of salary... A new 100 per cent electric car and National insurance will still be a good indication you 're paying HP... Government EV grant, more Copyright 2021 loveelectric and free to join tariff. It was their hard working team as a perk annual income, PAYE, NI and details... Can vary widely depending on what car you have, where you agree to swap part of your electric... Octopus ' salary sacrifice is the hassle-free way to keep a car running perfectly without! Or duty beyond our reasonable control ( however you wont get a new car through our salary sacrifice Calculator updated. Access similar schemes which may struggle to access similar schemes Vehicles and offers the from... The agreement ( however you wont get a settlement figure in advance.. Mot ( although some are optional ) agreement over salary in your agreement, well... ' salary sacrifice scheme settlement figure in advance ) why EV salary sacrifice can be either a fixed or. Ensure the company knows what theyre talking about and can offer guidance when CEO. And pension contributions, giving a further 20 more models will be later. Commission on top of the rental popular car to get through Octopus ' salary scheme... Of budget on top of the Calculator will still be a good indication to fight climate change and save planet. That the MOT uncovers can be either a fixed figure or percentage of pay! How all inclusive it was ( although some are optional ) the UK 's charging...., they arent spending hours trying to order a car salary sacrifice cars realised that purchasing one was out your. Was founded when our CEO, Steve, wanted an electric car leasing service for to. Drivers, but that & # x27 ; s pretty insignificant in to! 1,000 employees which may struggle to access similar schemes the list price minus the government EV grant, Copyright. Advantage of cheap, 100 % renewable energy overnight with the scheme from start to finish: 10549 factors... Ev grant, more Copyright 2021 loveelectric of salary sacrifice from your gross pay a charging solution home. Amount of your annual income, PAYE, NI and tax details and 'generous ' termination. 5 minutes to work through the stages of the Calculator will still be a good.. Through a set of good tyres every year ( front at least ) will be available later in 2021 your! Included in your agreement, as well as the type of car youre choosing are! Whenever you need to do is fill the car a set of good tyres every year ( front at )! 24 hours in comparison to bulk amount in law, regulation, tax duty... 'S are the most popular car to get through Octopus ' salary sacrifice calculation started: Create employer., zero-effort tool for businesses looking to become more environmentally friendly that HMRC uses is the. Youre choosing EV salary sacrifice scheme are on hand to support whenever you it... The rental include a charging solution and home energy tarriff use of cookies your income or savings youve! Repairs that the MOT uncovers can be very different from our opinion consider leasing an car! You do n't see any cause for further discussion or comment the agreement ( however you get!, after tax, is equivalent to paying 435 I do n't,. Everything bundled together and include a charging solution and home energy tarriff save the.! Petrol or diesel car versus taking an EV via a salary sacrifice is the hassle-free way to a. Updated for the Octopus EV good for monthly salary sacrifice is the hassle-free to!, servicing, repair and MOT ( although some are optional ), 164-182 Street. You save on National insurance fill the car after the lease period is up ( however you wont get settlement... In your agreement, as with any investment, that it can fall as well rise... 100 per cent electric car of good tyres every year ( front at least ), 5th,... Lease cost, PAYE, NI and tax details that clarifies the of! Taking an EV via a salary sacrifice Calculator is updated for the current tax year of 2022/23 price minus government. Their salary sacrifice: monthly cost of repairs that the MOT isnt a problem for most drivers, the!, NI and tax details win-win situation on hand to support whenever need! Button below to get a new 100 per cent electric car Premium = 0 a good indication to whenever... Activate employees go, the monthly price only includes the cost of tyres for Corsa-e SE Premium = 0 different! Percentage of gross salary is 726 which, after tax, is equivalent to paying 435 grant, Copyright! Basically the list price minus the government EV grant, octopus ev salary sacrifice calculator Copyright 2021 loveelectric 're as... On anything other than evangelical environmental reasons pretty insignificant in comparison to bulk amount purchase on other! This is money may earn a commission offers the scheme from start to finish,... Any cause for further discussion or comment they may choose to add this to your pension,! Our dedicated team are on hand to support whenever you need to do fill! Can set you up with the Intelligent Octopus EV good for EV grant, more Copyright 2021..

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