They offer a StopGap car while you wait for your new car. For a better experience, please enable JavaScript in your browser before proceeding. below). If you are going to chop it in, then you always have a monthly "payment" outgoing. is a credit broker and a vehicle hirer but not a consumer credit lender. Below is a chart summarising some of the leading electric car schemes in the UK.. This works when an employer and employee come to an agreement over salary. The firm said it is introducing the programme in response to a surge in interest in electric vehicles from businesses. The tax year figures in the Salary Sacrifice calculator are 2022/23 tax rates. There are no investment guarantees and you can end up with less than you put in via investments. Companies with 1,000+ employees that want to offer combustion cars and possibly a salary sacrifice scheme. Get started with loveelectric for free. LV426, circa 2020. oh yes, sorry forgot that zero deposit on our scheme too.. 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. So, it can be a win-win situation. . Youll drive the car over a set period, and return it to the leasing company at the end of the agreement. It provides everything businesses and employees need to go electric in one place including EVs, home and workplace chargers, smart energy tariffs to keep bills low, and impartial expert advice on going electric. 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. or less. Offer corporate leasing, corporate pool cars and car sharing. 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. for use in every day domestic and commercial use! This allows you to do one of two things: There is a NI saving for your employer. You can save up to 40% on the cost of a brand-new electric car when you use our salary sacrifice scheme. 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. Use our EV salary sacrifice calculator below to find out how much you could save each month. commission. Personal lease: Monthly cost of MOT, maintenance, servicing and repairs for Corsa 1.2 SE Edition = 22.50. There is unlikely to be a penalty on 0% APR but, yes, there needs to be a way of paying off the finance slightly before the sale. 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. But much depends on what you do next. Authority, firm reference number 809736, company number 10754317. For example, make sure to ask what the providers partners are. 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. Insurance costs can vary widely depending on what car you have, where you live, and other factors. 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. Most importantly, you want to ensure the company knows what theyre talking about and can offer guidance. This info does not constitute financial advice, always do your own research on top to ensure it's right for your specific circumstances and remember we focus on rates not service. They may choose to add this to your pension contributions, giving a further boost. Employees can buy the car after the lease period is up (however you wont get a settlement figure in advance). iCalculator is packed with UK Payroll, Tax, Finance and Salary Calculators which cover everything from VAT payment calculations to Landlord Income Tax calculations. There is usually an option on how to add this on your return, but HMRC are experts on this. commission. 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. Most online ads are lesser spec for pushing 35k in some examples, obviously thats more than any buy back price I know. There is a thing that crops up from time to time suggesting that a car can be taxed at the same rate as though the sacrificed salary had been retained, but that would negate the SS car schemes. Drivers of hybrid cars can pay BiK rates of up to 10 times more than an electric car would pay. We work with a range of partners, including benefit providers and consultancies, to support their clients to drive electric. You are using an out of date browser. 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. Yes, you give up part of your gross income to pay for the car. 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. Employers and employees who want everything bundled together and include a charging solution and home energy tarriff. 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. is a credit broker and a vehicle hirer but not a consumer credit lender. Who is WeVee good for? The calculation uses the most common tax-code of "1257L". Monthly Salary Sacrifice Calculator for 2023/24 Tax Year Calculate your adjusted take home pay and deduction of Salary Sacrifice from your Gross Pay. Octopus said many drivers are saving 30 to 40 per cent and some up to 60 per cent. As you can see, our electric car salary sacrifice scheme really does cover everything you need to hit the road. Is commercial property a great value investing opportunity? 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. You can calculate your take home pay based of your annual income, PAYE, NI and tax for 2023/24. *The P11D value that HMRC uses is basically the list price minus the government EV grant, more Option to buy the car at the end of the agreement. Within a fortnight due to the change in the government grant it jumped up by app 50 per month. Get the Tesla Model 3 Long Range AWD Auto on a Personal or Business Lease, from as little as 471.99, and with FREE UK delivery. Thats why we make it super easy for drivers who use our salary sacrifice scheme by covering everything they need to hit the road in one monthly payment. 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. 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.. 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 don't see any cause for further discussion or comment. Any driver who uses a company car for personal use pays BiK tax out of their monthly wage. At all times, if an employee resigns they can transfer the lease to another employee or take the lease with them to their new employer (if eligible) at no extra cost. A collection of really good online calculators. Body type. November 2022 Electric car salary sacrifice is a way of driving an electric car for less by giving up some of your gross salary. Car, charger, energy, insurance, servicing, maintenance, breakdown and tyres. Companies that are interested in business car leasing as well as salary sacrifice. British Airways vs Virgin Atlantic: Premium economy comparison, Video shows 1950s Aston Martin that was owned by the King of Belgium, All electric Rolls Royce Spectre is a treat to drive. 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. VAT registration number 386404284. 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. 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. 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. You to a panel of third-party lenders or hirers and in such circumstances may receive a All allow you to customise your car: from the colour and trim to the interior and additional features, you can personalise your brand new car to your requirements. 1 min read. These contributions are taken from your salary before tax and National Insurance are paid, so are tax efficient. 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. A guide to the different types of electric vehicles. Oh, and it uses tax rates for England and 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. ), but after a recent pay rise and mutterings at work that they are looking at a salary sacrifice EV scheme (Octopus EV), it has turned my head. 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. 50,271 to 100,000. An MOT is a legal requirement that costs around 55 per year. The calculation for the . Volvo assume 400 insurance, 150 tax, 300 tyres, 300 servicing. It is the tax and National Insurance savings that will pay for your sacrificed contributions. The monthly lease could be too expensive for employees, or the early termination policy wont be a good fit. Since they do not own the relationship with the leasing company, they wont have full responsibility over their regulatory conduct, systems and processes. Making Tax Calculations Simple. Some links in this article may be affiliate links. Our EV experts are on hand to help you find the perfect vehicle to meet your needs. Salary sacrifice calculator Use our calculator by using a percentage of your salary or fixed amount contributions. 17 min read. Octopus Thats where its important to have early termination protection in place. commission. loveto halve the cost of your new electric car? Salary sacrifice is an employee benefits scheme that allows you to pay for a car out of your gross monthly pay. 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. Octopus Electric Vehicles reserves the right to stop this promotion at any time. You can keep hold of your cash and pay for your car out of your monthly salary at one standard cost across the period. Octopus has been providing salary sacrifice for the last year but only as a broker for other leasing companies. 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. This site uses cookies to allow good user experience. 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. Europe's busiest forums, with independent news and expert reviews, for TVs, Home Cinema, Hi-Fi, Movies, Gaming, Tech and more. 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. We also partner with over 300 car dealerships, which means we almost certainly have access to the car youre looking for at the very best lead time. Additionally, we can often secure additional discounts from the car dealerships meaning that the final rental for the employee is even lower than our published rates. It also means that our monthly lease prices are almost always the best on the market., Although a core part of what we do is sourcing the vehicles and arranging the finance agreements behind the scenes, we also help employers set up the scheme, educate employees and offer assistance throughout the entire engagement.. Octopus is best known as an electricity and gas provider, but in 2018 they branched out to electric vehicles and the salary sacrifice scheme.. You will see an alteration to your contract, where you agree to swap part of your salary in exchange for other benefits. When we take into account the costs of fuel, insurance, tyres, MOT, servicing and repairs on top of the basic lease price for a personal lease, we can see that getting hold of an electric car equivalent through salary sacrifice works out cheaper. Fixed AmountPercentage of Salary, Annual Employee Contribution (%) Make. Affiliate links: If you take out a product This is Money may earn a commission. Employees pay Benefit in Kind tax on benefits they get from their employer on top of their salary. 33,600.the Jaguar i-Pace EV400 at 65,195 or the Nissan Leaf Acenta at 30,445. Your car is ready to go when you are. The more realistic comparison would be between personally leasing a petrol or diesel car versus taking an EV via a salary sacrifice scheme. 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. included in the lease price. and provides a breakdown of your annual salary with Monthly, Quarterly Weekly, Daily and Hourly pay illustrations. Check out the video below to find out more. Most have early termination protection (but each one will include different terms, so make sure to ask). 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. Its a salary sacrifice scheme (a bit like cycle to work) in which your lease an electric car with payments deducted from gross salary (. Insurance is an essential part of keeping your car on the road. iCalculator UK Salary Sacrifice Calculator is updated for the 2023/24 tax year. Don't forget, as with any investment, that it can fall as well as rise. For other cars no. British Vehicle Rental & Leasing Association (BVRLA) member number: 10549. Powered by Xenforo, Hosted by Nimbus Hosting, Original design Critical Media Ltd. our newly released scheme for the following cars, 8k miles, insured, maintained over 3 years would cost me as a 40% tax payer for. This calculator generates factual information about the potential effect of . We'll then provide a detailed breakdown of the potential savings for both you as an employee, and also for your employer. WeVee is a car leasing company that offers electric cars via corporate leasing, car sharing as well as the salary sacrifice scheme.. 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