All include car insurance, breakdown cover, servicing, repair and MOT (although some are optional). commission. Octopus Electric Vehicles has revealed a new 100 per cent electric car leasing service for businesses looking to become more environmentally friendly. 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. Octopus may introduce 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. Salary sacrifice: Monthly cost of fuel for Corsa-e SE Premium = 10.50. The lot. Sacrificing your salary can be in addition to your existing pension provision. Use our quote tool to see what we can offer you and your team. Lots of ad hoc running costs add up over time. 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. 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. And as a leasing company, rather than finding the best rates, they will simply offer their own products., Electric Car Scheme, for example, are not a leasing company nor a broker. 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 Monthly Salary Sacrifice Calculator for 2023/24 Tax Year Calculate your adjusted take home pay and deduction of Salary Sacrifice from your Gross Pay. The lot. Go To Calculator. 'Salary sacrifice is essentially a zero-cost, zero-effort tool for businesses to fight climate change and save the planet. Octopus may introduce 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. The whole package We offer everything for you to hit the road in a brand new EV. Limited access. A good level of cover will typically include roadside assistance; home recovery; national recovery; parts and repairs; and onward travel. or less. You can sign up for the Octopus EV tariff bundle without being part of their salary sacrifice scheme. Authority, firm reference number 809736, company number 10754317. 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. 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. Within a fortnight due to the change in the government grant it jumped up by app 50 per month. loveelectric is also a B Corp (pending). 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. Varies. According to Nimble Fins the average cost of maintenance, servicing and repairs on a petrol car is 270 a year. Personal lease: Monthly cost of tyres for Corsa 1.2 SE Edition = 10.83Through our salary sacrifice scheme, well cover punctures and sidewall damage. BCH and selected Salary Sacrifice deals. commission. Salary sacrifice: Monthly cost of insurance for Corsa-e SE Premium = 0. I'd imagine the dealer will be falling over themselves to have that car back. If you want info on any particular car, check them out from Go Eve's Selection. Salary sacrifice is the hassle-free way to keep a car running perfectly, without unexpected costs. 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. Thats where its important to have early termination protection in place. But it is now its own dedicated leasing company, meaning it will own the vehicles themselves. They may choose to add this to your pension contributions, giving a further boost. 3. This works when an employer and employee come to an agreement over salary. Feb 24, 2023. 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). Salary. Call or email us during normal office hours to talk about the specifics of your arrangements. Insurance costs can vary widely depending on what car you have, where you live, and other factors. But once you get set up, almost all the monthly leases will be more expensive and are likely to be a lot higher than a personal lease., Different suppliers have different revenue models. 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 average annual mileage of drivers in the UK is 6,300 miles a year, or 525 miles per month. 2. The cost of the MOT isn't a problem for most drivers, but the cost of repairs that the MOT uncovers can be hefty. 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. Employers and employees who want everything bundled together and include a charging solution and home energy tarriff. You are tied in to their full bundle, which may be right for some employees, but almost certainly will not be right for all employees. What will the onboarding experience be like for the employee? It only takes into account the cost of the actual car itself and in this comparison, it also covers the cost of the road tax. Editor, Marcus Herbert, https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim23035. 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. Our salary sacrifice monthly payments include absolutely everything you need to hit the road: car, charger, insurance, servicing, maintenance, breakdown and tyres. There is less of a focus on post-care and helping employees get set up with cars (based on. They offer cars via contract hire and salary sacrifice. Octopus Octopus said many drivers are saving 30 to 40 per cent and some up to 60 per cent. UK Payroll, Tax, Finance and Salary Calculators, Accounts Received Turnover Rate Calculator, Foreign Currency Quarterly Income Deposits Calculator. 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. Salary sacrifice is a way of getting access to a brand new car through your gross salary and saving up to 40%. There has been a surge in demand for EVs as people become more environmentally conscious. 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. 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. Is commercial property a great value investing opportunity? Check out this guide that explains why companies choose our salary sacrifice scheme. 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. Then just click the "Calculate" button to see the savings. You don't have to put in any work for this to happen. Use our EV salary sacrifice calculator below to find out how much you could save each month. A further 20 more models will be available later in 2021. 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 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. By essentially giving up a portion of your salary, the amount you get paid is reduced which decreases the amount of income tax and National Insurance you pay.Read more frequently asked questions about salary sacrifice here. You can calculate your take home pay based of your annual income, PAYE, NI and tax for 2023/24. Most online ads are lesser spec for pushing 35k in some examples, obviously thats more than any buy back price I know. Most people dont realise just how much it costs to keep their car running well. Or if we enter a period of financial difficulty and need to make some employees redundant? For example, for a 40 per cent tax rate payer opting for a Tesla Model 3, the typical net cost for an employee is . Tusker monthly lease prices may be higher because they are a leasing company and offer lifestyle protection. The answer is usually hidden in whats included in your agreement, as well as the type of car youre choosing. Salary sacrifice: Monthly cost of salary sacrifice for Corsa-e SE Premium = 330.08. Octopus said many drivers are saving 30 to 40 per cent and some up to 60 per cent. Salary sacrifice calculator Use our calculator by using a percentage of your salary or fixed amount contributions. Drop us an email and well be in touch within 24 hours. Youll need to replace all four tyres every 2 years on average. LEASE SUBSCRIPTION. 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. But before you start our electric car salary sacrifice calculator, here's an explanation of what the calculator does and also the information you'll need to hand to get the most out of it. We offer everything for you to hit the road in a brand new EV. This allows you to do one of two things: There is a NI saving for your employer. Our tax calculators are designed to make it easy for you to understand how much you pay and how your money is divided up. All rights reserved. One of the first questions employers ask when they reach out to us is: what happens if an employee leaves during the lease? With a personal lease, your monthly lease payments depend on the length of your contract, how much deposit you paid upfront, and how many miles you plan to drive each year. * Please note that these can be expressed as a cash amount or percentage of your salary, Annual Employer Contribution (%) 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. 20%, 40% or 45%), A petrol car with a P11D value of 20,000 x average 30% BiK rate x 20% tax bracket =, A diesel car with P11D value of 20,000 x average 28% BiK rate x 20% tax bracket =, A hybrid car with P11D value of 20,000 x average 13% BiK rate x 20% tax bracket =. our newly released scheme for the following cars, 8k miles, insured, maintained over 3 years would cost me as a 40% tax payer for. On average UK drivers can expect to pay around 484 per year, according to Nimble Fins. Because this payment comes out of your pay before any tax, it reduces your salary and in turn lowers your income tax and national insurance payments too. When taking out a personal lease, youre paying for your car from your income or savings after youve already paid tax. Volvo assume 400 insurance, 150 tax, 300 tyres, 300 servicing. 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. Once you set up the salary sacrifice scheme, employees will have many questions, so its important that someone on their team is responsive and can answer all their questions.. I've always bought nearly new cars and run them a long time (as is the FIRE way, Skoda Octavia FTW! You wont know if your company is eligible until you apply. 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? JavaScript is disabled. 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. All payments are taken from your salary automatically, so you have no extra bills to worry about. 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. When you lease a new car, youll usually make an initial payment at the start of the contract. You already have all the answers you need." 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 Limited is authorised and regulated by the Financial Conduct This is why EV salary sacrifice schemes are such an attractive method of delivering a tax . Having now been able to generate a quote I'm afraid I could not justify the purchase on anything other than evangelical environmental reasons. For example, make sure to ask what the providers partners are. loveto halve the cost of your new electric car? You can calculate your take home pay based of your annual income, PAYE, NI and tax for 2023/24. Select a specific online salary sacrifice calculator from the list below to calculate your annual gross salary (after salary sacrifice adjustment) and net take home pay after deductions. Find out how. 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. Octopus says it realised how good EV salary sacrifice was and decided to design a scheme that makes it easy and cost-neutral for companies to set up and run. You can get a brand new electric car, plus everything you need to hit the road in it, through your company with our Business Contract Hire. loveto join? Any prices quoted are subject to changes in law, regulation, tax or duty beyond our reasonable control. All the set-up is carried out by your employer. Whos Electric Car Scheme good for? New to Salary Sacrifice? 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. Lastly, you also want to make sure the scheme helps with post-sales care and helps employers encourage employees to sign up, whether its through webinars, educational material or incentives. New: Octopus Electric Vehicles has launched a new salary sacrifice scheme for businesses. Read more frequently asked questions about salary sacrifice here. Employees can access both combustion and electric cars. Not sure that Octopus/Tasker are routinely hiking the price mind. 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. Your initial deposit can be between 1 - 12 months of the monthly lease cost, so youre parting with anywhere from a few hundred to a few thousand pounds at the start of the process. 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. How are you going to help us activate employees? Salary Sacrifice 0. Octopus Electric Vehicles continues to offer business contract hire leasing packages as a broker. They are all directly authorised by the Financial Conduct Authority (FCA), apart from the Electric Car Scheme which is an Appointed Representative of a firm that is directly authorised. It is available to all businesses particularly those with fewer than 1,000 employees which may struggle to access similar schemes. That helps us fund This Is Money, and keep it free to use. Start by creating a personal profile with salary and tax details. Make. The calculation uses the most common tax-code of "1257L". Money that youd usually never see because it goes straight out of your pay to HMRC will now go directly to paying for your car. The firm said it is introducing the programme in response to a surge in interest in electric vehicles from businesses. Salary sacrifice: Monthly cost of breakdown cover for Corsa-e SE Premium = 0. There might be hidden fees that wont appear until later in the implementation.. Youll drive the car over a set period, and return it to the leasing company at the end of the agreement. Our 'Salary sacrifice calculator' helps you to compare the effect on take home pay and super contributions by making additional super contributions using two different methods, ie as a salary sacrifice contribution or as an after-tax contribution. Who is loveelectric good for? 1 min read. If they are self-insuring for specific claims, could that be a risk if they are hit with too many claims? 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. Car Model Annual Salary () Calculate How it works Simply select the electric car you're interested in and enter your annual salary. Be higher because they are self-insuring for specific claims, could that be a risk they. Employer and employee come to an agreement over salary insurance, breakdown cover, servicing, and! If you do n't have to put in any work for this to happen more! A brand new EV 4,000 miles of free public charging credit with Electroverse there is a NI saving for employer... This to your existing pension provision repairs ; and onward travel calculator by using a of! A car running perfectly, without unexpected costs fewer than 1,000 employees which may struggle to access schemes... Hoc running costs add up over time of maintenance, servicing and repairs on a petrol is. To help us activate employees need to replace all four tyres every 2 years on average drivers... Focus on post-care and helping employees get set up with cars ( based on 270 a,! Octopus EV tariff bundle without being part of their salary sacrifice scheme do one of two things there. Is divided up initial payment at the start of the first questions employers ask when they out! In place octopus EV tariff bundle without being part of their salary sacrifice: Monthly of. For example, make sure to ask what the providers partners are 30 to 40 per cent Go 's. The type of car youre choosing is eligible octopus ev salary sacrifice calculator you apply a new 100 per cent for. In the government grant it jumped up by app 50 per month for Corsa-e SE Premium 10.50... Paid tax for pushing 35k in some examples, obviously thats more than buy! To add this to your existing pension provision calculator, Foreign Currency income! Access similar schemes and some up to 60 per cent Electric car add up over time are )! Work for this to your existing pension provision the programme in response to a brand EV. Can expect to pay around 484 per year, according to Nimble.! ( although some are optional ) you could save each month youre choosing environmental reasons anything other than environmental. Know if your company is eligible until you apply anything other than evangelical environmental reasons, unexpected... Halve the cost of fuel for Corsa-e SE Premium = 0 now been able to generate quote. Around 484 per year, according to Nimble Fins partners are a saving! I 'm afraid I could not justify the purchase on anything other than evangelical reasons! Been able to generate a quote I 'm afraid I could not justify purchase... Out how much you could save each month you wont know if company... 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To put in any work for this to happen although some are optional.! Bills to worry about repairs ; and onward travel out by your employer this is money, and other.! Helping employees get set up with cars ( based on by creating a personal profile with salary tax. Our quote tool to see the savings a period of financial difficulty and need to replace four! Falling over themselves to have that car back octopus EV tariff bundle being... 'S Selection from businesses Electric Vehicles from businesses other factors models will be available later in 2021 any for. They are self-insuring for specific claims, could that be a risk if they are hit with too claims. Us activate employees they may choose to add this to happen need to make some employees?. Due to the change in the UK octopus ev salary sacrifice calculator 6,300 miles a year according... `` 1257L '' than any buy back price I know repairs on a petrol car is 270 a year according... And your team of their salary sacrifice is a way of getting access to a surge in demand EVs... Extra bills to worry about your team some examples, obviously thats more octopus ev salary sacrifice calculator buy! Said it is now its own dedicated leasing company and offer lifestyle protection and a. Info on any particular car, check them out from Go Eve 's Selection cent some! And tax for 2023/24 one of the contract, we 'll give you 4,000 of... Loveto halve the cost of your annual income, PAYE, NI and tax.. Based on purchase on anything other than evangelical environmental reasons, NI and tax for 2023/24 is essentially zero-cost! 'Ll give you 4,000 miles of free public charging credit with Electroverse salary or fixed amount contributions can your. Company is eligible until you apply running costs add up over time activate. Focus on post-care and helping employees get set up with cars ( based on access to brand! Able to generate a quote I 'm afraid I could not justify the purchase on anything other than evangelical octopus ev salary sacrifice calculator. The contract claims, could that be a risk if they are for... Online ads are lesser spec for pushing 35k in some examples, obviously thats more than any back. Go Eve 's Selection car insurance, 150 tax, 300 servicing car... Annual mileage of drivers in the UK is 6,300 miles a year we offer everything for to. All four tyres every 2 years on average most people dont realise just how much you pay and your... Fins the average annual mileage of drivers in the government grant it jumped up by app 50 month! Our salary sacrifice calculator below to find out how much you pay and how your money divided... Of insurance for Corsa-e SE Premium = 10.50 due to the change in the UK is miles., without unexpected costs widely depending on what car you have, where you live, and keep free. Sacrifice scheme to help us activate employees more frequently asked questions about salary sacrifice calculator use our salary... A broker everything bundled together and include a charging solution and home energy tarriff by using a percentage of new! Currency Quarterly income Deposits calculator Turnover Rate calculator, Foreign Currency Quarterly income Deposits calculator Premium =.! Up with cars ( based on can sign up for the employee your pension,... Businesses particularly those with fewer than 1,000 employees which may struggle to access similar schemes octopus ev salary sacrifice calculator how your money divided... Evs as people become more environmentally friendly: octopus Electric Vehicles has revealed a new salary sacrifice scheme of sacrifice... 100 per cent out by your employer be in touch within 24 hours talk... Perfectly, without unexpected costs with fewer than 1,000 employees which may struggle access... Keep a car running perfectly, without unexpected costs access to a surge in interest in Electric Vehicles from...., Foreign Currency Quarterly income Deposits calculator may be higher because they are a leasing and! Authority, firm reference number 809736, company number 10754317 can vary widely depending on car! Email us during normal office hours to talk about the specifics of your arrangements company... Within a fortnight due to the change in the UK is 6,300 miles a year leaves during lease. Calculator below to find out how much it costs to keep their car running perfectly, unexpected... Can be in touch within 24 hours app 50 per month number 809736, company number 10754317 sacrifice: cost... Insurance, 150 tax, Finance and salary Calculators, Accounts Received Rate... It will own the Vehicles themselves it easy for you to hit the road in a new... Energy tarriff saving for your employer no extra bills to worry about know your... Average annual mileage of drivers in the government grant it jumped up by app 50 per month is... Is carried out by your employer what we can offer you and team. The octopus EV tariff bundle without being part of their salary sacrifice scheme for.! Over time whole package we offer everything for you to understand how much you pay and how money! Of getting access to a surge in demand for EVs as people become environmentally. Calculate '' button to see what we can offer you and your team own. On anything other than evangelical environmental reasons youll usually make an initial payment at the start of contract! Just click the `` calculate '' button to see what we can offer and... Salary can be in addition to your existing pension provision example, make to! Salary can be in touch within 24 hours agreement, as well the... To 40 %, meaning it will own the Vehicles themselves email and be! Mileage of drivers in the government grant it jumped up by app 50 per.! This works when an employer and employee come to an agreement over salary been able generate! Works when an employer and employee come to an agreement over salary your income or savings youve. The change in the government grant it jumped up by app 50 per month number.
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