Make sure to understand what youre paying for and what the terms are. 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. 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. 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. Fro example, I was getting through a set of good tyres every year (front at least). our newly released scheme for the following cars, 8k miles, insured, maintained over 3 years would cost me as a 40% tax payer for. Your salary does not change overall. LEASE SUBSCRIPTION. You may also find the following Finance calculators useful. 2. You to a panel of third-party lenders or hirers and in such circumstances may receive a (adsbygoogle = window.adsbygoogle || []).push({}); All Tax Calculators on iCalculator are updated with the latest Tax Rates and Personal Allowances for 2023/24 tax year. a couple of hundred pounds a month more expensive than a regular lease. Octopus Electric Vehicles Limited is authorised and regulated by the Financial Conduct Octopus Electric Vehicles has revealed a new 100 per cent electric car leasing service for businesses looking to become more environmentally friendly. All in one easy monthly payment. Youll still have to sort out insurance, servicing, maintenance, MOT, repairs and fuel costs. LV426, circa 2020. oh yes, sorry forgot that zero deposit on our scheme too.. 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 =. This works when an employer and employee come to an agreement over salary. The whole package We offer everything for you to hit the road in a brand new EV. 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.. Youll drive the car over a set period, and return it to the leasing company at the end of the agreement. If you are going to chop it in, then you always have a monthly "payment" outgoing. included with our EV salary sacrifice scheme? Our salary sacrifice monthly payments include absolutely everything you need to hit the road: car, charger, insurance, servicing, maintenance, breakdown and tyres. We ran the numbers to compare whats included in the total cost, and whether salary sacrifice, or a personal lease, is a cheaper way of getting a car when you take everything into account. 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. Even though leasing might seem like a cheaper way to drive, the unexpected costs of running the car can quickly stack up. Examples include the VW ID3 Pro at A good level of cover will typically include roadside assistance; home recovery; national recovery; parts and repairs; and onward travel. 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. 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. 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. Help your employees benefit from one of the best employee benefit schemes going without it costing you a penny. Make. commission. Octopus Electric Vehicles Limited is authorised and regulated by the Financial Conduct 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. New: Octopus Electric Vehicles has launched a new salary sacrifice scheme for businesses. 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. Lets take a comparison of the cost of leasing a Corsa 1.2 SE Edition petrol car vs taking a Corsa-e SE Premium through salary sacrifice. You can keep hold of your cash and pay for your car out of your monthly salary at one standard cost across the period. Use our quote tool to see what we can offer you and your team. 4,000 free miles of home charging with Intelligent Octopus. Octopus may introduce The more realistic comparison would be between personally leasing a petrol or diesel car versus taking an EV via a salary sacrifice scheme. 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. Offer corporate leasing, corporate pool cars and car sharing. Insurance is an essential part of keeping your car on the road. We'll check your eligibility then get in touch to answer any questions you may have. Europe's busiest forums, with independent news and expert reviews, for TVs, Home Cinema, Hi-Fi, Movies, Gaming, Tech and more. Fixed AmountPercentage of Salary, Annual Employee Contribution (%) Since they do not own the relationship with the leasing company, they wont have full responsibility over their regulatory conduct, systems and processes. 1150 PA. The Employer Car Salary Sacrifice calculator estimates all of the items in the Employee calculator plus: employer's national insurance contributions employer's pension scheme contributions VAT recovery and business tax relief the employer's total cost of Car Salary Sacrifice before and after tax relief/recovered VAT Read more frequently asked questions about salary sacrifice here. Sounds complicated. 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. Inclusive of this is insurance, servicing and maintenance and 'generous' early termination terms for the business should the employee leave. You are using an out of date browser. 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. Inside Octopus EV podcast . Body type. 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.. Leases are 24-48 months contracts for new cars. You never have to worry about an unexpected repair bill or missed insurance payment. For me the clincher was just how all inclusive it was. Ready to find out whats so special about our EV salary sacrifice scheme? Each salary sacrifice calculator allows you to enter salary sacrifice as a fixed amount of a percentage of your Gross pay. We do not allow any commercial relationship to affect our editorial independence. You already have all the answers you need." Due to the increasing demand for electric vehicles, there are more electric vehicle salary sacrifice schemes that are set up every year. Then just click the "Calculate" button to see the savings. 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. As we mentioned above, each salary sacrifice monthly lease will be different and include different services. Its a financial commitment that needs time and money to manage. That's the group's vision and the website goes on to explain more about that goal. They may choose to add this to your pension contributions, giving a further boost. Some employers choose not to include insurance, but its up to your company. 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. VAT registration number 386404284. However, that means youll want to know how much that commission is. Feb 16, 2023. Record 330million to be paid to Premium Bonds winners this month: Total payouts now exceed 25billion since the first draw in 1957, Put warmth at a fair price above pushing smart meters and heat pumps, says LEE BOYCE: It would be better to spend money keeping our energy prices down. 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. Employees are tied to Octopus own app, Electric Juice, which can include offers and discounts. Our EV experts are on hand to help you find the perfect vehicle to meet your needs. We do not write articles to promote products. BiK has historically been very low for electric cars to encourage the uptake of low emissions vehicles as the UK moves towards decarbonising transport. 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. Get 4,000 miles of Electroverse credit to use across the UK's charging network. The answer is usually hidden in whats included in your agreement, as well as the type of car youre choosing. and provides a breakdown of your annual salary with Monthly, Quarterly Weekly, Daily and Hourly pay illustrations. Any prices quoted are subject to changes in law, regulation, tax or duty beyond our reasonable control. 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.. Not sure that Octopus/Tasker are routinely hiking the price mind. But really, it's not. Sony VPL-VW760ES, Seymour AV UF DIY 150" screen, Marantz 8805 processor, Marantz MM8003 amp, Yamaha MXA5000 amp, DIYSG HTM-12 x3 & Volt-6 x10 speakers, DIY UM18-22 subs x2, Panasonic DP-UB9000 Blu-ray player. Salary sacrifice is a way of getting access to a brand new car through your gross salary and saving up to 40%. 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. Prepare for peak pothole season! Octopus is best known as an electricity and gas provider, but in 2018 they branched out to electric vehicles and the salary sacrifice scheme.. Salary sacrifice: Monthly cost of insurance for Corsa-e SE Premium = 0. Ideally, you want the confidence that employees will take advantage of the benefit and thats something that the provider should help with.. 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. This has been updated for the current tax year of 2022/23. They allow employers to set up an entire car fleet. 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. 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