Varies. All the set-up is carried out by your employer. Because electric cars produce zero emissions theres no road tax to pay. This website uses the TMDb API but is not endorsed or certified by TMDb. Leases are 24-48 months contracts for new cars. They offer a StopGap car while you wait for your new car. Companies of any size that want to offer employees an affordable car and care about a good car ordering and employee experience. HMRC treats the benefit separately from your salary, which means you pay the tax before it arrives into your bank account. The cost of the MOT isnt a problem for most drivers, but the cost of repairs that the MOT uncovers can be hefty. Shortest delivery time. Limited access. company number 03997482, registered in England and Wales. 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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. Pay in 10,000 for bonus. A dealer etc will arrange this for you. Make. Change the numbers to suit you. We'll install your home charger. The cost of the MOT isn't a problem for most drivers, but the cost of repairs that the MOT uncovers can be hefty. 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. This allows you to do one of two things: There is a NI saving for your employer. Setting up on the scheme is easy. Some 15 companies are already live on the scheme, including Huel and Purplebricks, making it available to 1,491 employees across the UK. 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. Meet the smart meter addicts: The dad who cut back on 1p coffees, the teacher on a 5.50 daily gas limit and the mum so obsessed she hid hers in a drawer! Whos Electric Car Scheme good for? 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. 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. For example, for a 40 per cent tax rate payer opting for a Tesla Model 3, the typical net cost for an employee is . AVForums.com is owned and operated by M2N Limited, Its a financial commitment that needs time and money to manage. As you can see, our electric car salary sacrifice scheme really does cover everything you need to hit the road. Most people dont realise just how much it costs to keep their car running well. Sony A95L QD-OLED, X95L MINI LED And Full BRAVIA Range For 2023 (In-Depth Interview). A further 20 more models will be available later in 2021. A quick valuation on Carwow last night though had it at 34-35k. Electric Dreams aims to support the growing number of employees looking to go electric using salary sacrifice which could ultimately help them save thousands of pounds on both national insurance and income tax. 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. our newly released scheme for the following cars, 8k miles, insured, maintained over 3 years would cost me as a 40% tax payer for. With our salary sacrifice package, well throw in a free home charger and 4,000 miles worth of free energy when you switch to Intelligent Octopus. included in the lease price. 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. 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. Employees can access both combustion and electric cars. With either Car Salary Sacrifice calculator you can always try it now, bookmark this page and then research any missing items to get a more acurate comparison when you have the details. For example, Tusker and Octopus EV are leasing companies and set the rentals themselves. Our electric car salary sacrifice scheme is free for employers to join and can be set up within just a couple of weeks. below). Below is a chart summarising some of the leading electric car schemes in the UK.. is a credit broker and a vehicle hirer but not a consumer credit lender. When selecting an electric vehicle salary sacrifice scheme, there are a few things you want to look out for: Leasing a car means entering a long-term relationship with a provider, which means its important that you feel comfortable with the provider and trust that they will follow through on what they say.. Since they dont have a direct relationship with leasing companies, they cant charge a commission. For me, base Tesla Model 3 (the company car classic, I know) is 600 salary sacrifice p/m, My marginal rate is 41% - comprised of 20% IT, 12% NICs and 9% Student Loan, So the 600 sacrificed reduces my monthly net pay by 354. Octopus Electric Vehicles continues to offer business contract hire leasing packages as a broker. This can only happen when your employer adjusts the terms of your contract. There aren't any downsides compared to a standalone lease. Offer corporate leasing, corporate pool cars and car sharing. 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. The regular leases including fuel, insurance and maintenance for the identical car? 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. 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. The employee pays for the car with a portion of their salary before taxes, saving money on tax and getting a brand new EV in return. We often link to other websites, but we can't be responsible for their content. What will the onboarding experience be like for the employee? Have we let energy giants make too much profit? You wont know if your company is eligible until you apply. Lease prices are higher because they are a leasing company that is considerably smaller than the market leaders and they have a higher cost of capital. For this reason, you want to ensure the team communicates clearly and quickly. Yeah, seems so. No queuing. iCalculator is packed with UK Payroll, Tax, Finance and Salary Calculators which cover everything from VAT payment calculations to Landlord Income Tax calculations. Maintenance and insurance can optionally be added. The company saves 53.19 on National Insurance meaning it is cost neutral for them. 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. The calculation for the . Go To Calculator. They allow employers to set up an entire car fleet. 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. You to a panel of third-party lenders or hirers and in such circumstances may receive a 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. Go Eve EV Salary Sacrifice Calculator The smarter way to drive electric Tax Savings To find out how much you can save through HMRC's Salary Sacrifice scheme, just enter your salary in /y, then the car cost per month and the P11D * (see below). Filter. Click on the appropriate button below to get your Car Salary Sacrifice calculation started: Create an employer profile for taxes and pension contributions. Read this guide to Salary Sacrifice and How Salary Sacrifice can reduce the amount of tax you pay. BiK has historically been very low for electric cars to encourage the uptake of low emissions vehicles as the UK moves towards decarbonising transport. Note: Looking to get started with a salary sacrifice scheme that has no hidden cost and offers the best early termination policies? Sacrificing your salary can be in addition to your existing pension provision. Keep in mind that this amount cannot be salary sacrificed so the fee will the gross amount before taxes. You also want to ensure employees have an outstanding customer experience when ordering a car. Ready to find out whats so special about our EV salary sacrifice scheme? Insurance is an essential part of keeping your car on the road. Anyway, if anyone interested in asking their employer to sign up to the scheme and has a car in mind I don't mind having a quick look for you to see a rough guide price. Check out the video below to find out more. Love Electric Financial Services Limited is a credit broker and not a lender. Decide who you will open up the scheme to e.g. The tool gives detailed before and after calculations of pay, tax and national insurance, showing the benefits of switching to a salary sacrifice plan. 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. Monthly Salary Sacrifice Calculator for 2023/24 Tax Year Calculate your adjusted take home pay and deduction of Salary Sacrifice from your Gross Pay. Bear in mind your saving is, this: Assume 500pcm for the Tesla (NET) Fuel cost PA Volvo about 1500 (61mpg on 15k, though probably more) Fuel Cost Tesla (assume 10p rate) at 3.8KWH/mile about 400 PA. Then car tax, insurance, servicing etc. * Please note that these can be expressed as a cash amount or percentage of your salary, Annual Employer Contribution (%) loveto halve the cost of your new electric car? 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. 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. 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. Lease vs subscription. Were comparing a petrol version of the Corsa with an electric one of a higher spec, because most drivers will expect the EV to be more expensive. 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Octopus has been providing salary sacrifice for the last year but only as a broker for other leasing companies. 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. We ran a comparison between two makes of Vauxhall Corsa - a petrol Corsa 1.2 SE Edition, and its electric equivalent, the Corsa-e SE Premium. An employer can set up a salary sacrifice scheme and must mention the scheme in your contract or terms and conditions of employment. commission. KIA, Polestar, Mercedes, VW and Porsche also all have a share. Its also incredibly important to read through the fine print, so you know what youre getting.. You to a panel of third-party lenders or hirers and in such circumstances may receive a Feb 16, 2023. 4,000 free miles of home charging with Intelligent Octopus. A guide to the different types of electric vehicles. Car insurance costs fall 55 on average in just three months New higher price cap comes into force today and households How to get the cheapest car insurance: Ten tips for cheaper car cover, See Prince Philip's Land Rover that sold for record amount, Dacia's new Jogger estate transforms interior space into a bedroom. An MOT is a legal requirement that costs around 55 per year. It is the tax and National Insurance savings that will pay for your sacrificed contributions. This works when an employer and employee come to an agreement over salary. 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. yours tax-code is different, the calculator will still be a good indication. 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. Drop us an email and well be in touch within 24 hours. A collection of really good online calculators. We work with a range of partners, including benefit providers and consultancies, to support their clients to drive electric. Then it might be a sign that they dont have high standards or simply dont fully understand the complexity of an EV salary sacrifice scheme. Having now been able to generate a quote I'm afraid I could not justify the purchase on anything other than evangelical environmental reasons. There has been a surge in demand for EVs as people become more environmentally conscious. Will employees get their questions answered quickly. Early termination only covers 10% of claims or ten cars whichever is greatest. The salary sacrifice tax savings are particularly attractive for me. An electric car salary sacrifice scheme is a way for your employees to get an EV as an employee benefit and save on tax. If they are self-insuring for specific claims, could that be a risk if they are hit with too many claims? We've split our Car Salary Sacrifice calculator between employers and employees. You can calculate results based on either a fixed cash value or a certain proportion of your salary. 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. Thats where its important to have early termination protection in place. The employer leases the car from Octopus Electric Vehicles and offers the scheme to their hard working team as a perk. Take advantage of our salary scheme through your employer. . ICO reference number: ZB075747. With most leases, the monthly price only includes the cost of the car. 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