octopus ev salary sacrifice calculator

Octopus Electric Vehicles continues to offer business contract hire leasing packages as a broker. Some links in this article may be affiliate links. The employer leases the car from Octopus Electric Vehicles and offers the scheme to their hard working team as a perk. By comparison, combustion vehicles are subject to a typical BIK tax of 25 to 35 per cent. 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. This allows you to do one of two things: There is a NI saving for your employer. Some 15 companies are already live on the scheme, including Huel and Purplebricks, making it available to 1,491 employees across the UK. 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.. 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. Personal lease: Monthly cost of breakdown cover for Corsa 1.2 SE Edition = 14.08With our salary sacrifice package, breakdown is included at no extra cost, so you dont need to worry about getting your own roadside assistance. 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. 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. 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. 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. It's also 100% anonymous, in case you were wondering. To get started with our Car Salary Sacrifice calculator here's what you will need for each version . Don't worry if you haven't got all this yet - you can still estimate the cost impact using values our Car Salary Sacrifice calculator will provide automatically. We don't as a general policy investigate the solvency of companies mentioned (how likely they are to go bust), but there is a risk any company can struggle and it's rarely made public until it's too late (see the. Always remember anyone can post on the MSE forums, so it can be very different from our opinion. 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. Octopus said many drivers are saving 30 to 40 per cent and some up to 60 per cent. An employer can set up a salary sacrifice scheme and must mention the scheme in your contract or terms and conditions of employment. So, it can be a win-win situation. 'Salary sacrifice is essentially a zero-cost, zero-effort tool for businesses to fight climate change and save the planet. 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. iCalculator UK Salary Sacrifice Calculator is updated for the 2023/24 tax year. Not sure that Octopus/Tasker are routinely hiking the price mind. Alternatively, this can be a cost-effective way for an employer to start a pension scheme, if they are setting out on this road. The monthly lease could be too expensive for employees, or the early termination policy wont be a good fit. Ideally, you want the confidence that employees will take advantage of the benefit and thats something that the provider should help with.. Drivers can get hit with costly bills of hundreds, if not thousands of pounds when something goes wrong with their car. We've split our Car Salary Sacrifice calculator between employers and employees. What's included with our EV salary sacrifice scheme? In this article, well compare the top five electric car schemes to help you decide and understand which solution might be the right fit for you.. Option to buy the car at the end of the agreement (however you wont get a settlement figure in advance). WeVee is a car leasing company that offers electric cars via corporate leasing, car sharing as well as the salary sacrifice scheme.. Spoke to the company to get the ball rolling and the actual paperwork has come through to me with a monthly cost of 454 so now 116 dearer per month. Authority, firm reference number 809736, company number 10754317. 1. The more realistic comparison would be between personally leasing a petrol or diesel car versus taking an EV via a salary sacrifice scheme. Same here, and zero credit check etc. I think it sounds a great scheme but for me it simply would not be cost effective. 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. 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. For other cars no. Read this guide to Salary Sacrifice and How Salary Sacrifice can reduce the amount of tax you pay. 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. We've pre-filled some sample data. 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. The whole package We offer everything for you to hit the road in a brand new EV. Authority, firm reference number 809736, company number 10754317. Examples include the VW ID3 Pro at Essentially, salary sacrifice means employees agree to give up part of their salary in exchange for a benefit, in this instance the benefit is a 'green' car. If they've not signed up yet, send them our way. 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. Start by creating a personal profile with salary and tax details. A collection of really good online calculators. We do not allow any commercial relationship to affect our editorial independence. 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). Octopus The company saves 53.19 on National Insurance meaning it is cost neutral for them. Octopus may introduce The cleaner future of heating or noisy, ugly and pricey will Britain fall in love with heat pumps or do they risk being a green status symbol for the wealthy? In simple terms, salary sacrifice is a system whereby an employee will forgo some of their gross salary and in return, they receive a benefit. The optimal number of days a home needs to be on the market to get the best price from its sale, MARKET REPORT: Capco cheers West End recovery ahead of its 5bn mega merger with rival London landlord Shaftesbury, Persimmon to slash building of new homes with UK housing crisis set to deepen amid higher mortgage rates and the cost of living crunch, ReckittBenckiser sees profits soar as string of price hikes more than offset dwindling demand, Aston Martin losses mount on delayed deliveries and sterling weakness but carmaker's shares soar as it eyes positive cash flow in 2023, Bank of England governor Andrew Bailey says more interest rate hikes are 'not inevitable', Takeover of UK satellite giant Inmarsat ready for blast off as regulators give provisional green light to 5.4bn deal. 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. Companies of any size that want to offer employees an affordable car and care about a good car ordering and employee experience. Companies that are interested in business car leasing as well as salary sacrifice. Because electric cars produce zero emissions theres no road tax to pay. Retain the same pension contribution, so your take-home pay goes up, Add the savings to your pension pot so it grows for your retirement. Our registered address is UK House, 5th Floor, 164-182 Oxford Street, London, W1D 1NN. Drivers of hybrid cars can pay BiK rates of up to 10 times more than an electric car would pay. A lot of electric car schemes require a consultation or a call to understand the pricing and what is included. For this reason, you want to ensure the team communicates clearly and quickly. Money that you'd normally never see (because it goes straight out of your pay to HRMC) goes directly towards paying for your car. Win-win! Due to the increasing demand for electric vehicles, there are more electric vehicle salary sacrifice schemes that are set up every year. Car leasing is the same as a long term rental. For me the clincher was just how all inclusive it was. If you click on them we may earn a small commission. The No. 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.. A quick valuation on Carwow last night though had it at 34-35k. 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. Our salary sacrifice scheme is the perfect choice if you want to make savings on switching to electric through your salary, and ditch the hassle of car ownership. Help your employees benefit from one of the best employee benefit schemes going without it costing you a penny. Sort by. Sounds like something to report to the appropriate oversight body if they are telling you their way of leasing is cheaper AFAIK, theres nothing illegal about it - but while an employer only uses one company to provide the leases, theres no incentive to lower the price to what it should be, as theres no competition. They offer a StopGap car while you wait for your new car. Revolut auditor waves the red flag over 477m of unverified revenues but bosses insist they will STILL get a banking licence! 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. Best salary sacrifice car scheme comparison table, What to look out for when choosing an EV salary sacrifice scheme, Electric Cars are Expensive. It simply means their rental prices cannot match the ones of large leasing companies. How do you manage the employees salary and payroll? 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. The firm said it is introducing the programme in response to a surge in interest in electric vehicles from businesses. Prepare for peak pothole season! Personal lease: Monthly cost of petrol for Corsa 1.2 SE Edition = 105.53. 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. , W1D 1NN 35 per cent octopus ev salary sacrifice calculator are more electric vehicle salary sacrifice between... 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