All rights reserved. The launch comes as EVs reach a tipping point thanks to falling cost, government incentives and changing attitudes towards zero emission vehicles. Theres also the BiK, but that's pretty insignificant in comparison to bulk amount. 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. Before 2021, EVs were exempt from paying any BiK tax. Your salary does not change overall. 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. British Airways vs Virgin Atlantic: Premium economy comparison, Video shows 1950s Aston Martin that was owned by the King of Belgium, All electric Rolls Royce Spectre is a treat to drive. Examples include the VW ID3 Pro at Who is Octopus EV good for? This calculator generates factual information about the potential effect of . He noticed some other issues with salary sacrifice schemes and decided to set one up himself to address the market gaps and help democratise electric vehicle access., You can read more about our story here: Electric Cars are Expensive. Here are some reasons why:, The main thing to keep in mind when comparing electric car salary sacrifice schemes is that youre often comparing apples to oranges., Many schemes will include different services and have different eligibility criteria and policies, which can make it harder to compare them directly., What you really need to look for is quality of service and product and weigh that up with the monthly service cost. Make. Alternatively, this can be a cost-effective way for an employer to start a pension scheme, if they are setting out on this road. Because electric cars produce zero emissions theres no road tax to pay. Octopus said many drivers are saving 30 to 40 per cent and some up to 60 per cent. Early termination only covers 10% of claims or ten cars - whichever is greatest. 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 You get taxed a small amount for the benefit of having the car, whilst making other savings on Income Tax and National Insurance. Octopus said many drivers are saving 30 to 40 per cent and some up to 60 per cent. Body type. No standing. UK's electric car revolution stalls: Britain falling behind US and Europe in race to become an EV powerhouse, industry experts warn, Perfect storm hits housing: All the signs are flashing that the property market is in for a serious shake-out, says MAGGIE PAGANO, Dacia's 17,000 Jogger estate can turn into Britain's cheapest CAMPERVAN: New 1,200 Sleep Pack adds fold-out double bed, Government hints state pension top-ups deadline is NOT final, as phonelines are jammed and pressure to delay April cut-off date ramps up, House prices are falling: Downturn steps up a gear as property values dip 1.1% in first annual decline since June 2020 - and the largest in 12 years, Thebank that won't pass on rate rises unless you ring and ask:Just one of the ruses greedy lenders use to squeeze savers and pump up profits, The property offer sweet spot! They allow employers to set up an entire car fleet. Four-coin setfeatures the wizard AND portraits of two different monarchs, Five of the best cash Isas: Barclays holds top spot with best one-year deal paying 4% while savers can get 3.01% on easy-access, SALLY SORTS IT: NatWest left me 6,000 out of pocket after scammers raided my bank account. For example, if their gross monthly lease is set at 500 per month for a 24-month term and they resign at month four, the termination fee would be 500. Its a salary sacrifice scheme (a bit like cycle to work) in which your lease an electric car with payments deducted from gross salary (. New: Octopus Electric Vehicles has launched a new salary sacrifice scheme for businesses. 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.. You also want to ensure employees have an outstanding customer experience when ordering a car. '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.'. Fiona Howarth, chief executive of Octopus Electric Vehicles, said: 'Salary sacrifice makes electric cars a no brainer making them significantly cheaper than their petrol or diesel counterparts. On average UK drivers can expect to pay around 484 per year, according to Nimble Fins. Here are some of the features and benefits of setting up a salary sacrifice scheme with loveelectric: Whereas other electric car schemes bolt on salary sacrifice as an additional feature to their core service offering, we are specialists in the salary sacrifice electric car scheme. All payments are taken from your salary automatically, so you have no extra bills to worry about. To calculate your BiK rate you need three numbers: P11D value of the car x BiK tax band x your income tax bracket. The salary sacrifice tax savings are particularly attractive for me. 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. We hope this comparison is practical and will help you navigate the field of electric car vehicle salary sacrifice schemes. Go To Calculator. Our dedicated team are on hand to support whenever you need it. Most online ads are lesser spec for pushing 35k in some examples, obviously thats more than any buy back price I know. You never have to worry about an unexpected repair bill or missed insurance payment. Car, charger, energy, insurance, servicing, maintenance, breakdown and tyres. Perhaps a concrete example would make this clearer. I think it sounds a great scheme but for me it simply would not be cost effective. The firm said it is introducing the programme in response to a surge in interest in electric vehicles from businesses. Salary sacrifice lets you make contributions to your pension and helps to save on National Insurance at the same time. Our registered address is UK House, 5th Floor, 164-182 Oxford Street, London, W1D 1NN. 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. 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. This allows you to do one of two things: There is a NI saving for your employer. 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. And at loveelectric, we provide one of the best policies on the market. loveelectric is also a B Corp (pending). 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. This makes it easy for you to charge at night when power is cheapest. 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. You don't have to put in any work for this to happen. There aren't any downsides compared to a standalone lease. Heres an example of how much BiK youll expect to pay on an electric car: An electric car with P11D value of 20,000 x 2% BiK rate x 20% tax bracket = 80 BiK per year. Car leasing is the same as a long term rental. Monthly cost of the personal lease Corsa 1.2 SE Edition = 399.52. We are no longer accepting comments on this article. Electric Car Scheme was started in 2021 with business contract hire leases, and launched a salary sacrifice scheme in January 2022.. Authority, firm reference number 809736, company number 10754317. Salary sacrifice: Monthly cost of fuel for Corsa-e SE Premium = 10.50. 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. Octopus Powered by Xenforo, Hosted by Nimbus Hosting, Original design Critical Media Ltd. 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. 1. Octopus Electric Vehicles reserves the right to stop this promotion at any time. Drivers can get hit with costly bills of hundreds, if not thousands of pounds when something goes wrong with their car. Setting up on the scheme is easy. Youll still have to sort out insurance, servicing, maintenance, MOT, repairs and fuel costs. Win-win! 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. So, it can be a win-win situation. In this case, the company pays 745.41 plus an unrecoverable VAT of 53.19 which equals 798.60. Decide who you will open up the scheme to e.g. Employees will pay a fixed monthly cost for the vehicle whichis made using their gross salary which is their income before tax or net salary plus their national insurance and income tax. This can only happen when your employer adjusts the terms of your contract. 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. The lot. 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. Early termination only covers 10% of claims or ten cars whichever is greatest. and provides a breakdown of your annual salary with Monthly, Quarterly Weekly, Daily and Hourly pay illustrations. Octopus An employer can set up a salary sacrifice scheme and must mention the scheme in your contract or terms and conditions of employment. 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. Its also incredibly important to read through the fine print, so you know what youre getting.. Best salary sacrifice car scheme comparison table, What to look out for when choosing an EV salary sacrifice scheme, Electric Cars are Expensive. The calculation uses the most common tax-code of "1257L". The regular leases including fuel, insurance and maintenance for the identical car? Personal lease: Monthly cost of petrol for Corsa 1.2 SE Edition = 105.53. 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. 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. 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. But really, it's not. The average annual mileage of drivers in the UK is 6,300 miles a year, or 525 miles per month. We often link to other websites, but we can't be responsible for their content. So their fee comes out of charging double rent for the first 6 months, as well as an additional fee to the employer.. 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 above example relies on the motorist driving 8,000 miles a year for four years and also makes the assumption that the company is eligible to recover VAT - 50 per cent on Finance and 100 per cent on Services. Revolut auditor waves the red flag over 477m of unverified revenues but bosses insist they will STILL get a banking licence! company number 03997482, registered in England and Wales. 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. Our registered address is UK House, 5th Floor, 164-182 Oxford Street, London, W1D 1NN. The overall process is meant to be cost neutral for businesses as they can recover VAT and also save as they make lower National Insurance contributions due to the salary sacrifice - bothare used to calculate the employer's gross sacrifice. 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. They offer cars via contract hire and salary sacrifice. They have a Carbon Standard offsetting project that offsets all their salary sacrifice cars. 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. Their early termination policy covers dismissal. You to a panel of third-party lenders or hirers and in such circumstances may receive a Tusker primarily works with companies with 1,000+ employees. How are you going to help us activate employees? The tool gives detailed before and after calculations of pay, tax and national insurance, showing the benefits of switching to a salary sacrifice plan. Volvo assume 400 insurance, 150 tax, 300 tyres, 300 servicing. Thats where its important to have early termination protection in place. Well-maintained tyres keep you safe on the road and make your travel more fuel-efficient, but if theyre not well looked after they can result in your car failing its MOT. "I don't see any cause for further discussion or comment. The rate went up to 1% in April 2021, and changed again in April 2022 to 2%. Octopus Electric Vehicles - electric vehicle leasing for personal, business and salary sacrifice including charging and cheap renewable electricity. Salary sacrifice: Monthly cost of MOT, maintenance, servicing and repairs for Corsa-e SE Premium = 0. 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. There has been a surge in demand for EVs as people become more environmentally conscious. Technically you are still paid the same. Sign a simple contract to sign up to our free service. 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. Each salary sacrifice calculator allows you to enter salary sacrifice as a fixed amount of a percentage of your Gross pay. Youll drive the car over a set period, and return it to the leasing company at the end of the agreement. Authority, firm reference number 809736, company number 10754317. 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. Inside Octopus EV podcast . Then just click the "Calculate" button to see the savings. Jump To Car Salary Sacrifice Calculator Companies with 1,000+ employees that want to offer combustion cars and possibly a salary sacrifice scheme. Emissions theres no road tax to pay around 484 per year, according to Nimble Fins falling,! Can get hit with costly bills of hundreds, if not thousands of pounds when something goes wrong with car... 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