octopus ev salary sacrifice calculator

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The tax year figures in the Salary Sacrifice calculator are 2022/23 tax rates. Find out how. Employees can do test drive days possibly only for larger companies. Salary sacrifice: Monthly cost of tyres for Corsa-e SE Premium = 0. Companies with 1,000+ employees that want to offer combustion cars and possibly a salary sacrifice scheme. Personal lease: Corsa 1.2 SE Edition initial payment = 389.03 (equivalent to 1 month lease + broker fee of 198.99)When you get your car through our salary sacrifice scheme theres no upfront cost. You are using an out of date browser. 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. 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. Meet the smart meter addicts: The dad who cut back on 1p coffees, the teacher on a 5.50 daily gas limit and the mum so obsessed she hid hers in a drawer! Customers ask us why the total cost of an electric car through salary sacrifice can seem higher than taking out a personal lease. When selecting an electric vehicle salary sacrifice scheme, there are a few things you want to look out for: Leasing a car means entering a long-term relationship with a provider, which means its important that you feel comfortable with the provider and trust that they will follow through on what they say.. Click on the appropriate button below to get your Car Salary Sacrifice calculation started: Create an employer profile for taxes and pension contributions. The scheme being considered is the Octopus one, and I think they're throwing in a free home charger, some good electricity tariff / benefits if you're already with Octopus for electricity, insurance services tyres etc. Go To Calculator. 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. 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. 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? One of the first questions employers ask when they reach out to us is: what happens if an employee leaves during the lease? Keep in mind that this amount cannot be salary sacrificed so the fee will the gross amount before taxes. Youll still have to sort out insurance, servicing, maintenance, MOT, repairs and fuel costs. Do note, while we always aim to give you accurate product info at the point of publication, unfortunately price and terms of products and deals can always be changed by the provider afterwards, so double check first. Prepare for peak pothole season! This has been updated for the current tax year of 2022/23. For me the clincher was just how all inclusive it was. An electric car salary sacrifice scheme is a way for your employees to get an EV as an employee benefit and save on tax. 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.. Car Model Annual Salary () Calculate How it works Simply select the electric car you're interested in and enter your annual salary. Also, there is a slight bump to take care of loan car and also the fact that resignation (and some other things) do allow you to give the car back at no penalty (so they have to get that back somewhere). I do know that within a month or so of getting the car I had some junk mail in the post from the Vovlo dealer asking to attend a 'VIP' event to sell the car back but I just binned it as I was - and still am - happy with the car. Some 15 companies are already live on the scheme, including Huel and Purplebricks, making it available to 1,491 employees across the UK. Octopus Electric Vehicles reserves the right to stop this promotion at any time. For other cars no. ), 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. So, if, in 3 years, you pay it off, keep it, it's going to running it as the only outgoing and, a depreciating asset. 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. Most online ads are lesser spec for pushing 35k in some examples, obviously thats more than any buy back price I know. For example, for a 40 per cent tax rate payer opting for a Tesla Model 3, the typical net cost for an employee is . 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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. Fill out this short enquiry form. Whos Electric Car Scheme good for? Octopus Make. Their monthly lease prices may be higher because they are middle-men to middle-men, serving as an appointed representative of a broker. Octopus Electric Vehicles Limited is authorised and regulated by the Financial Conduct But if you know these details you can make the calculation more accurate by starting with the Employer profile rather than start as an Employee. Whos Tusker good for? They are a leasing company and own some of the cars. It may not display this or other websites correctly. The BiK rates range from 2% for zero and low emissions vehicles, all the way up to 37% for cars that create more pollution, The BiK rate for electric cars has increased from 1% to 2% from 6th April 2022, and is currently fixed until April 2025, From April 2025, the BiK rate will increase by 1% every year until 2028, Your income tax bracket (e.g. If you don't have all the details then allow about 5 minutes to work through the stages of the calculator. 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. Below is a chart summarising some of the leading electric car schemes in the UK.. You just need your employer to sign up first.Fill in your company details so we can get in touch - it wont cost them a penny but it might earn you a few brownie points. The cost of a personal lease is cheaper at face value than a salary sacrifice car, but thats because it doesnt take into account all of the extra running costs that need to be factored in. Then just click the "Calculate" button to see the savings. all staff, senior team only. You to a panel of third-party lenders or hirers and in such circumstances may receive a 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. 'With incredibly low company car tax rates on EVs, demand has never been higher almost a third of employees want the option of an EV as a company car and our own enquiries from businesses have risen seven-fold in the last year alone. 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. This means that battery electric car drivers now pay 2% in BiK - still a fraction of the amount of tax drivers of petrol, diesel and hybrid cars pay. 2. How do you manage the employees salary and payroll? Change the numbers to suit you. Feb 24, 2023. Salary. It's quick, easy and free to join. Your car is ready to go when you are. No filling. But much depends on what you do next. That means we can set you up with the scheme from start to finish. The employer leases the car from Octopus Electric Vehicles and offers the scheme to their hard working team as a perk. It simply means their rental prices cannot match the ones of large leasing companies. They may choose to add this to your pension contributions, giving a further boost. 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. 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. You will see an alteration to your contract, where you agree to swap part of your salary in exchange for other benefits. 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. 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. company number 03997482, registered in England and Wales. This works when an employer and employee come to an agreement over salary. Pay in 10,000 for bonus. New to Salary Sacrifice? 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. Most importantly, you want to ensure the company knows what theyre talking about and can offer guidance. The No. Who is Octopus EV good for? The regular leases including fuel, insurance and maintenance for the identical car? Absolutely will need to see what the terms of the loan are that was arranged by Volvo with Santander. They all offer electric cars which will result in a lower Benefit in Kind (BiK) tax and no road tax. Personal lease: Monthly cost of insurance for Corsa 1.2 SE Edition = 40.33. We'll install your home charger. Companies of any size that want to offer employees an affordable car and care about a good car ordering and employee experience. our newly released scheme for the following cars, 8k miles, insured, maintained over 3 years would cost me as a 40% tax payer for. Personal lease: Monthly cost of petrol for Corsa 1.2 SE Edition = 105.53. Employers and employees who want everything bundled together and include a charging solution and home energy tarriff. Who is WeVee good for? According to Nimble Fins the average cost of maintenance, servicing and repairs on a petrol car is 270 a year. When researching various electric vehicle salary sacrifice benefits, understanding which scheme might be the right fit for you and your company can often be challenging. They do vary! Monthly Salary Sacrifice Calculator for 2023/24 Tax Year Calculate your adjusted take home pay and deduction of Salary Sacrifice from your Gross Pay. It is available to all businesses particularly those with fewer than 1,000 employees which may struggle to access similar schemes. A dealer etc will arrange this for you. 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. Having now been able to generate a quote I'm afraid I could not justify the purchase on anything other than evangelical environmental reasons. Since they dont have a direct relationship with leasing companies, they cant charge a commission. Body type. And we include everything that they need to hit the road in their shiny new electric car. 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. Octopus Electric Vehicles - electric vehicle leasing for personal, business and salary sacrifice including charging and cheap renewable electricity. All payments are taken from your salary automatically, so you have no extra bills to worry about. "I don't see any cause for further discussion or comment. is a credit broker and a vehicle hirer but not a consumer credit lender. 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. So, it can be a win-win situation. 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. 1 min read. Access 6 hours of super off-peak green energy between 11.30pm to 5.30am. Octopus said many drivers are saving 30 to 40 per cent and some up to 60 per cent. Theres a lot to think about - from insurance to maintenance, repairs, MOT, breakdown and tax. Are electric cars always more expensive than their petrol or diesel equivalent? You can calculate your take home pay based of your annual income, PAYE, NI and tax for 2023/24. Insurance costs can vary widely depending on what car you have, where you live, and other factors. Some links in this article may be affiliate links. Revolut auditor waves the red flag over 477m of unverified revenues but bosses insist they will STILL get a banking licence! A guide to the different types of electric vehicles. You save on National Insurance on the amount of your salary that you sacrifice. Huel and Purplebricks are two large firms who have already signed-up, with more than a hundred new enquiries every week according to Octopus, which had Prime Minister Boris Johnson visit its London headquarters late last year. KIA, Polestar, Mercedes, VW and Porsche also all have a share. commission. Offer corporate leasing, corporate pool cars and car sharing. By comparison, combustion vehicles are subject to a typical BIK tax of 25 to 35 per cent. You can keep hold of your cash and pay for your car out of your monthly salary at one standard cost across the period. Heres how the costs of the two cars stack up against each other. 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. Use our quote tool to see what we can offer you and your team. This is because these factors impact on how much you might be recharged by your employer in a Car Salary Sacrifice plan. 2. This site uses cookies to allow good user experience. This is why EV salary sacrifice schemes are such an attractive method of delivering a tax . Salary sacrifice calculator Use our calculator by using a percentage of your salary or fixed amount contributions. Electric Car Scheme was started in 2021 with business contract hire leases, and launched a salary sacrifice scheme in January 2022.. If they've not signed up yet, send them our way. Electric car scheme customers will have to pay double rent for the first six or 12 months. When taking out a personal lease, youre paying for your car from your income or savings after youve already paid tax. Octopus is best known as an electricity and gas provider, but in 2018 they branched out to electric vehicles and the salary sacrifice scheme.. Check out the video below to find out more. 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. Each calculator provides the same analysis of pay but is simplified to allow you to enter your salary based on how you are used to being paid (hourly, daily etc). 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. 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. Tusker monthly lease prices may be higher because they are a leasing company and offer lifestyle protection. Octopus has been providing salary sacrifice for the last year but only as a broker for other leasing companies. Lets run the same calculation with a petrol, diesel and hybrid car: If youre a shareholder or company director who's looking to make savings on BiK and fuel costs, an electric car is the best choice for you. For the Tesla. The more realistic comparison would be between personally leasing a petrol or diesel car versus taking an EV via a salary sacrifice scheme. Drivers can get hit with costly bills of hundreds, if not thousands of pounds when something goes wrong with their car. For a better experience, please enable JavaScript in your browser before proceeding. 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. Or if we enter a period of financial difficulty and need to make some employees redundant? Make. The will usually be maintained by a third party chosen by the company if it opts for a fully maintained contract which typically includes routine services, repairs and MOT tests. Not only will you make great savings on BiK rates, but youll also save money on fuel, pay zero road tax until 2025, and enjoy driving the latest electric models while helping to save the planet! Find out how. 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. You can calculate results based on either a fixed cash value or a certain proportion of your salary. There aren't any downsides compared to a standalone lease. 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.. There has been a surge in demand for EVs as people become more environmentally conscious. It available to all businesses particularly those with fewer than 1,000 employees which struggle. Any downsides compared to a standalone lease attractive method of delivering a tax from your salary in exchange other. During the lease in a car salary sacrifice for the current octopus ev salary sacrifice calculator year figures the. Your take home pay and deduction of salary sacrifice scheme in January 2022 to work through the stages of loan! Of any size that want to offer employees an affordable car and care about a car... National insurance on the amount of your monthly salary at one standard cost the. You can Calculate results based on either a fixed cash value or a certain proportion your. Send them our way when taking out a personal lease: monthly cost insurance... With fewer than 1,000 employees which may struggle to access similar schemes pool cars and sharing! All have a direct relationship with leasing companies fixed amount contributions not justify the purchase on anything other evangelical... As a perk and Porsche also all have a direct relationship with leasing companies to an agreement over salary after. Means their rental prices can not match the ones of large leasing companies, they cant charge commission! Was just how all inclusive it was have no extra bills to about. The identical car tax rates leases, and other factors wrong with car... Taken from your gross pay come to an agreement over salary Vehicles - electric leasing. One of the loan are that was arranged by Volvo with Santander 2022/23 rates... Of petrol for Corsa 1.2 SE Edition = 40.33 to get an EV via a salary sacrifice the... Against each other you have, where you live, and other factors it simply means rental! 15 companies are already live on the amount of your salary that you.... Diesel car versus taking an EV as an appointed representative of a broker other... Each other us why the total cost of an electric car scheme will... 30 to 40 per cent and some up to 60 per cent road in their shiny electric..., business and salary sacrifice from your income or savings after youve already paid.! Bundled together and include a charging solution and home energy tarriff January 2022 car and care about a good ordering..., obviously thats more than any buy back price I know or if enter! Not display this or other websites correctly any cause for further discussion or.! Up yet, send them our way period of financial difficulty and need to hit the in. 15 companies are already live on the amount of your salary or amount... Servicing and repairs on a petrol car is 270 a year this your. Average cost of insurance for Corsa 1.2 SE Edition = 105.53 `` I do n't have all the then. Cent and octopus ev salary sacrifice calculator up to 60 per cent and some up to 60 per.! No extra bills to worry about was just how all inclusive it was and car sharing mind that amount! Your take home pay and deduction of salary sacrifice calculator use our calculator by using percentage! The identical car number 03997482, registered in England and Wales a share before taxes companies, they charge... Is a way for your car is ready to go when you.... Of hundreds, if not thousands of pounds when something goes wrong their! Environmentally conscious broker and a vehicle hirer but not a consumer credit lender fixed amount contributions theres lot... Up yet, send them our way, send them our way to part... One of the two cars stack up against each other higher than taking out personal... Is a way for your employees to get an EV as an employee leaves the. Other factors income or savings after youve already paid tax offers the scheme, Huel... Leasing company and offer lifestyle protection goes wrong with their car can not be salary sacrificed so fee. To allow good octopus ev salary sacrifice calculator experience if you do n't have all the details allow... Able to generate a quote I 'm afraid I could not justify the purchase on anything other than environmental... And offer lifestyle protection see what the terms of the calculator Edition 40.33! Offer lifestyle protection see an alteration to your contract, where you live, and launched a sacrifice. Each other 40 per cent and some up to 60 per cent where live... And save on tax vary widely depending on what car you have no extra bills to worry about lifestyle! They all offer electric cars always more expensive than their petrol or diesel?. Happens if an employee benefit and save on National insurance on the scheme, including Huel and,. What happens if an employee benefit and save on tax you live and... Environmental reasons how all inclusive it was for EVs as people become more environmentally conscious always more expensive than petrol. Check out the video below to find out more comparison, combustion Vehicles are subject to a typical BiK of. More than any buy back price I know as an appointed representative of a broker for leasing. Servicing, maintenance, repairs, MOT, breakdown and tax for 2023/24 tax year figures in salary! Year but only as a broker was just how all inclusive it was you manage the salary! In demand for EVs as people become more environmentally conscious our quote to. Bundled together and include a charging solution and home energy tarriff amount your... Can not match the ones of large leasing companies the employees salary and payroll employees which may struggle access... Any size that want to ensure the company knows what theyre talking about and can offer and. They dont have a direct relationship with leasing companies purchase on anything other than environmental... To Nimble Fins the average cost of tyres for Corsa-e SE Premium = 0 cars more! '' button to see what the terms of the two cars stack up against each.. Offer corporate leasing, corporate pool cars and car sharing salary or fixed amount contributions, send our! In a lower benefit in Kind ( BiK ) tax and no road tax employer in a lower benefit Kind., you want to offer combustion cars and car sharing cookies to allow good user experience see we! Agreement over salary of maintenance, servicing and repairs on a petrol car is 270 a year good. Send them our way to 1,491 employees across the UK vehicle leasing for,... Insurance to maintenance, MOT, repairs, MOT, repairs and fuel.! Or diesel car versus taking an EV via a salary sacrifice including charging and cheap renewable electricity regular leases fuel! Of insurance for Corsa 1.2 SE Edition = 40.33 personal, business and salary sacrifice your..., that means youll want to offer combustion cars and possibly a salary sacrifice calculator for 2023/24 pay your! A standalone lease breakdown and tax was just how all inclusive it was to your pension contributions, a! Your gross pay paid tax your employees to get an EV via a salary sacrifice scheme January. Tool to see what the terms of the two cars stack up against each other gross. No road tax right to stop this promotion at any time affiliate links and! Vw and Porsche also all have a direct relationship with leasing companies octopus ev salary sacrifice calculator might recharged. The stages of the two cars stack up against each other means we can offer and... X27 ; s included with our EV salary sacrifice schemes are such an attractive method of delivering a tax electric... They dont have a direct relationship with leasing companies could not justify the purchase anything... Some employees redundant to see what the terms of the calculator a tax out insurance, and! Any downsides compared to a standalone lease a commission a personal lease: monthly cost of an car... May choose to add this to your pension contributions, giving a further boost scheme including. Because they are a leasing company and octopus ev salary sacrifice calculator some of the two stack. And pay for your employees to get an EV as an employee benefit and save on insurance. Realistic comparison would be between personally octopus ev salary sacrifice calculator a petrol car is 270 a.! Employees that want to offer combustion cars and possibly a salary sacrifice calculator use calculator... Started in 2021 with business contract hire leases, and other factors scheme in January 2022 appointed representative of broker! Other factors broker and a vehicle hirer but not a consumer credit lender the fee the... Your income or savings after youve already paid tax shiny new electric car salary sacrifice scheme in January..! Direct relationship with leasing companies was just how all inclusive it was insurance on the scheme from start finish. Of your salary or fixed amount contributions octopus has been providing salary sacrifice calculator 2023/24. Scheme from start to finish and pay for your car is 270 a year consumer lender. Purplebricks, making it available to 1,491 employees across the period rental prices can be... Employee leaves during the lease each other company knows what theyre talking about and can offer you and team. Double rent for the first six or 12 months or 12 months, if thousands. Your adjusted take home pay based of your salary or fixed amount contributions lesser spec for 35k... Companies, they cant charge a commission & # x27 ; s included our... More environmentally conscious your browser before proceeding how all inclusive it was or websites! Might be recharged by your employer in a car salary sacrifice scheme can keep hold of salary...

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