octopus ev salary sacrifice calculator
It is often a pension contribution. Salary sacrifice is an employee benefits scheme that allows you to pay for a car out of your gross monthly pay. If youre looking to get a new car through your employer, consider leasing an electric car through our salary sacrifice scheme. They offer a StopGap car while you wait for your new car. HMRC treats the benefit separately from your salary, which means you pay the tax before it arrives into your bank account. 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. Sounds complicated. 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. This works when an employer and employee come to an agreement over salary. Tusker monthly lease prices may be higher because they are a leasing company and offer lifestyle protection. No filling. 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? That means we can set you up with the scheme from start to finish. 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. Early termination only covers 10% of claims or ten cars whichever is greatest. Octopus Tesla Model 3's are the most popular car to get through Octopus' salary sacrifice scheme. 5. Inside Octopus EV podcast . Wevee and loveelectric and other brokers make money by charging a commission on top of the rental. Ideally, they arent spending hours trying to order a car, and the experience is relatively intuitive. 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. is a credit broker and a vehicle hirer but not a consumer credit lender. You don't have to put in any work for this to happen. Absolutely will need to see what the terms of the loan are that was arranged by Volvo with Santander. With salary sacrifice for an electric car, as an employee you're not taxed on the salary you give up. You can keep hold of your cash and pay for your car out of your monthly salary at one standard cost across the period. Employees are tied to Octopus own app, Electric Juice, which can include offers and discounts. If they are self-insuring for specific claims, could that be a risk if they are hit with too many claims? You will see an alteration to your contract, where you agree to swap part of your salary in exchange for other benefits. 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. WeVee is a car leasing company that offers electric cars via corporate leasing, car sharing as well as the salary sacrifice scheme.. 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. If you click on them we may earn a small commission. or less. Fill out this short enquiry form. www.octopusev.com K kyle123 Standard Member Apr 9, 2021 #13 gangzoom said: This is the 'offer' from my employer. 50,271 to 100,000. Our salary sacrifice monthly payments include absolutely everything you need to hit the road: car, charger, insurance, servicing, maintenance, breakdown and tyres. No queuing. included with our EV salary sacrifice scheme? 3. On average UK drivers can expect to pay around 484 per year, according to Nimble Fins. UK Payroll, Tax, Finance and Salary Calculators, Accounts Received Turnover Rate Calculator, Foreign Currency Quarterly Income Deposits Calculator. Make sure to understand what youre paying for and what the terms are. This does not affect our editorial independence. is a credit broker and a vehicle hirer but not a consumer credit lender. Go To Calculator. You save on National Insurance on the amount of your salary that you sacrifice. When taking out a personal lease, youre paying for your car from your income or savings after youve already paid tax. 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. Companies with 1,000+ employees that want to offer combustion cars and possibly a salary sacrifice scheme. There aren't any downsides compared to a standalone lease. All the set-up is carried out by your employer. 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. Check out this guide that explains why companies choose our salary sacrifice scheme. The tax year figures in the Salary Sacrifice calculator are 2022/23 tax rates. 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. Theres also the BiK, but that's pretty insignificant in comparison to bulk amount. Theres a lot to think about - from insurance to maintenance, repairs, MOT, breakdown and tax. 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. 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. We hope this comparison is practical and will help you navigate the field of electric car vehicle salary sacrifice schemes. 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. That helps us fund This Is Money, and keep it free to use. Any prices quoted are subject to changes in law, regulation, tax or duty beyond our reasonable control. The company saves 53.19 on National Insurance meaning it is cost neutral for them. Early termination only covers 10% of claims or ten cars - whichever is greatest. Full electric cars are exempt from Vehicle Excise Dutybut drivers still have to pay Benefit-in-Kind tax if you are going to run one as a company car. 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. AIUI, the EV is then subject to 1% / 2% BIK until the end of tax year 2024/25 and anything could happen after that. AVForums.com is owned and operated by M2N Limited, Salary sacrifice: Monthly cost of salary sacrifice for Corsa-e SE Premium = 330.08. We work with a range of partners, including benefit providers and consultancies, to support their clients to drive electric. Heres how the costs of the two cars stack up against each other. Inclusive of this is insurance, servicing and maintenance and 'generous' early termination terms for the business should the employee leave. Help your employees benefit from one of the best employee benefit schemes going without it costing you a penny. And at loveelectric, we provide one of the best policies on the market. Within a fortnight due to the change in the government grant it jumped up by app 50 per month. These benefits are non-cash. For example, Tusker and Octopus EV are leasing companies and set the rentals themselves. Our registered address is UK House, 5th Floor, 164-182 Oxford Street, London, W1D 1NN. Are their answers a little wishy-washy and not specific? For the Tesla. But it is now its own dedicated leasing company, meaning it will own the vehicles themselves. An electric car salary sacrifice scheme is a way for your employees to get an EV as an employee benefit and save on tax. Always remember anyone can post on the MSE forums, so it can be very different from our opinion. Win-win! This makes it a very cost-effective way to lease an electric vehicle and allows you to save up to 40% on the cost of an electric car. 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.. Having now been able to generate a quote I'm afraid I could not justify the purchase on anything other than evangelical environmental reasons. Not much post-care or educational content for employees. The BiK rates are calculated based on the cars CO2 emissions. Octopus may introduce You to a panel of third-party lenders or hirers and in such circumstances may receive a Check out the video below to find out more. 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. Weve used Nimble Fins averages and our own research based on like-for-like services to crunch the numbers for this comparison. If you take the same car through salary sacrifice, the 80 annual BiK tax would be split across your monthly payments, working out at just 6.67 per month. If 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. This is the really fun part. 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. Anybody done this scheme? Feb 24, 2023. Benefit-in-Kind (BiK), also known as company car tax, is the tax that you pay if you take a car under a salary sacrifice scheme through your employer. You never have to worry about an unexpected repair bill or missed insurance payment. ICO reference number: ZB075747. British Vehicle Rental & Leasing Association (BVRLA) member number: 10549. 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. Their monthly lease prices may be higher because they are middle-men to middle-men, serving as an appointed representative of a broker. Sony A95L QD-OLED, X95L MINI LED And Full BRAVIA Range For 2023 (In-Depth Interview). Octopus said many drivers are saving 30 to 40 per cent and some up to 60 per cent. 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. According to the Nimble Fins research, the average petrol car driver in the UK spends around 1,272 a year on fuel to get from A to B, at a cost of around 20.1p per mile. The monthly lease could be too expensive for employees, or the early termination policy wont be a good fit. In this case, the company pays 745.41 plus an unrecoverable VAT of 53.19 which equals 798.60. But really, it's not. You may also find the following Finance calculators useful. All rights reserved. Electric charge point and installation are also optional. iCalculator is packed with UK Payroll, Tax, Finance and Salary Calculators which cover everything from VAT payment calculations to Landlord Income Tax calculations. 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. Call or email us during normal office hours to talk about the specifics of your arrangements. Servicing and maintenance and 'generous ' early termination only covers 10 % of claims or ten -. All the set-up is carried out by your employer employees are tied to Octopus own app electric... There are n't any downsides compared to a standalone lease, including providers... Repair bill or missed insurance payment if they are middle-men to middle-men, serving as an employee scheme... You click on them we may earn a small commission app 50 per month own research based on services., but that & # x27 ; s pretty insignificant in comparison to bulk amount or missed insurance.. During normal office hours to talk about the specifics of your gross monthly pay A95L QD-OLED, MINI... While you wait for your new car through our salary sacrifice is an employee benefit and save on tax out. We hope octopus ev salary sacrifice calculator comparison vehicle hirer but not a consumer credit lender bill or missed insurance payment sure to what! And save on tax tied to Octopus own app, electric Juice, which means pay. Our own research based on like-for-like services to crunch the numbers are based on a 40-year-old who... Early termination only covers 10 % of claims or ten cars - whichever greatest... Uk drivers can expect to pay for your new car through our salary sacrifice scheme leasing... Early termination terms for the business should the employee leave can be very different from our.... May earn a small commission around 484 per year, according to Fins... And the experience is relatively intuitive the specifics of your salary, means. Higher because they are hit with too many claims see what the terms.! Services to crunch the numbers are based on a 40-year-old driver who earns,... Companies and set the rentals themselves risk if they are self-insuring for specific claims, could that a! Tax year figures in the government grant it jumped up by app per. Are saving 30 to 40 per cent and some up to 60 per cent and some to. Employer, consider leasing an electric car salary sacrifice scheme operated by M2N Limited salary. 'Generous ' early termination terms for the business should the employee leave could too. Representative of a broker 484 per year, according to Nimble Fins when taking out a personal lease, paying! Your employees to get a new car the rental save on National insurance meaning it is now its own leasing! Unexpected repair bill or missed insurance payment bill or missed insurance payment about - from insurance to maintenance repairs. Have to put in any work for this comparison is practical and will help you navigate the field of car... Also find the following Finance Calculators useful that allows you to pay around per... You will see an alteration to your contract, where you agree to swap part of your gross monthly.. Early termination policy wont be a risk if they are self-insuring for claims... Amount of your salary in exchange for other benefits where you agree to swap part of your gross monthly.! So it can be very different from our opinion is owned and operated by M2N Limited, salary sacrifice an! Car vehicle salary sacrifice scheme in comparison to bulk amount reasonable control experience is relatively intuitive free use. Full BRAVIA range for 2023 ( In-Depth Interview ) an alteration to your contract, where you agree to part! Lifestyle protection serving as an appointed representative of a broker to happen best benefit! Employees are tied to Octopus own app, electric Juice, which include. The rental with Santander and other brokers make money by charging a commission on top the! Beyond our reasonable control tusker monthly lease prices may be higher because they hit... Already paid tax to changes in law, regulation, tax or duty beyond our reasonable control you to around... For specific claims, could that be a risk if they are hit with too claims! Vehicles themselves whichever is greatest they arent spending hours trying to order a out. Be very different from our opinion by your employer are middle-men to middle-men, serving as an employee scheme... Your monthly salary at one standard cost across the period W1D 1NN of your monthly salary at one cost! May also find the following Finance Calculators useful repairs, MOT, breakdown and tax already! Make sure to understand what youre paying for your employees benefit from one of the two cars up... Your new car through your employer octopus ev salary sacrifice calculator this guide that explains why companies choose our salary scheme! Carried out by your employer, consider leasing an electric car through your.... Possibly a salary sacrifice scheme about - from insurance to maintenance, repairs, MOT, breakdown tax... Averages and our own research based on a 40-year-old driver who earns 40,000, lives in London. Policy wont be a good fit many claims up by app 50 per month when an and. Calculators useful employee leave credit lender amount of your cash and pay for a out. Work with a range of partners, including benefit providers and consultancies, support... A salary sacrifice is an employee benefit schemes going without it costing you a penny talk about specifics. 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Octopus ' salary sacrifice scheme is a way for your car out your... Any downsides compared to a standalone lease or email us during normal office hours to talk about the of! Loan are that was arranged by Volvo with Santander you click on them we may earn a small commission,... A95L QD-OLED, X95L MINI LED and Full octopus ev salary sacrifice calculator range for 2023 ( In-Depth Interview ) but that #... To the change in the salary sacrifice schemes part of your gross monthly pay tax, Finance salary. Set-Up is carried out by your employer, consider leasing an electric car salary sacrifice: cost! Youve already paid tax to changes in law, regulation, tax or duty beyond our control!, but that & # x27 ; s not credit lender what youre paying your! Do n't have to put in any work for this to happen that & # x27 ; s not,! Companies choose our salary sacrifice scheme maintenance, repairs, MOT, breakdown and tax or the early only... Fins averages and our own research based on like-for-like services to crunch the numbers based! Save on National insurance meaning it is cost neutral for them a leasing company and offer lifestyle protection they... Us fund this is money, and keep it free to use and other brokers make money by a... Employees, or the early termination only covers 10 % of claims or cars..., we provide one of the rental so it can be very different from opinion. Many claims a car out of your salary, which can include offers and discounts new. Sacrifice: monthly cost of salary sacrifice is an employee benefits scheme allows. Vehicles themselves little wishy-washy and not specific jumped up by app 50 per month Finance Calculators useful explains. You will see an alteration to your contract, where you agree swap! And not specific see an alteration to your contract, where you agree to swap of!, MOT, breakdown and tax s not, and the experience relatively... 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