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. If youre looking to get a new car through your employer, consider leasing an electric car through our salary sacrifice scheme. 'We are thrilled to see so many customers offering our service to their employees already and the signs are that many more will sign-up in 2021.'. For example, make sure to ask what the providers partners are. According to the Nimble Fins research, the average petrol car driver in the UK spends around 1,272 a year on fuel to get from A to B, at a cost of around 20.1p per mile. 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. Setting up on the scheme is easy. 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. 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 =. It is often a pension contribution. Our salary sacrifice monthly payments include absolutely everything you need to hit the road: car, charger, insurance, servicing, maintenance, breakdown and tyres. Monthly cost of the personal lease Corsa 1.2 SE Edition = 399.52. 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. The regular leases including fuel, insurance and maintenance for the identical car? Salary Sacrifice can be either a fixed figure or percentage of gross pay. They are a leasing company and own some of the cars. Who is Octopus EV good for? 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. 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. If youre an employer whos set this up for talent acquisition and retention, then you want to ensure employees make the most of it., Yet many salary sacrifice schemes will mainly focus on signing up a company rather than taking care of what happens afterwards. Now press "Calculate" to get the results. Change the numbers to suit you. Is commercial property a great value investing opportunity? Salary sacrifice is a way of getting access to a brand new car through your gross salary and saving up to 40%. As you can see, our electric car salary sacrifice scheme really does cover everything you need to hit the road. Revolut auditor waves the red flag over 477m of unverified revenues but bosses insist they will STILL get a banking licence! Yes, you give up part of your gross income to pay for the car. commission. Within a fortnight due to the change in the government grant it jumped up by app 50 per month. This means your net pay will go down by the amount you pay for the car, minus your tax savings. This website uses the TMDb API but is not endorsed or certified by TMDb. There is usually an option on how to add this on your return, but HMRC are experts on this. Your car is ready to go when you are. Salary sacrifice: Monthly cost of insurance for Corsa-e SE Premium = 0. 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. 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. Don't forget, as with any investment, that it can fall as well as rise. The scheme, called Electric Dreams, uses a system known as 'salary sacrifice' which allows staff to pay for a new electric vehicle out of their gross salary, potentially saving them thousands of pounds on national insurance and income tax. Heres how the costs of the two cars stack up against each other. Technically you are still paid the same. Due to the increasing demand for electric vehicles, there are more electric vehicle salary sacrifice schemes that are set up every year. Are investors underestimating the impact of rate rises? You will see an alteration to your contract, where you agree to swap part of your salary in exchange for other benefits. Most importantly, you want to ensure the company knows what theyre talking about and can offer guidance. is a credit broker and a vehicle hirer but not a consumer credit lender. If 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. 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. We offer everything for you to hit the road in a brand new EV. 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. We do not write articles to promote products. New to Salary Sacrifice? Examples include the VW ID3 Pro at 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. Get 4,000 miles of Electroverse credit to use across the UK's charging network. 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. For this reason, you want to ensure the team communicates clearly and quickly. 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.. Electric car drivers can take advantage of cheap, 100% renewable energy overnight with the Intelligent Octopus EV tariff from Octopus Energy. British Vehicle Rental & Leasing Association (BVRLA) member number: 10549. 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. 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. BiK has historically been very low for electric cars to encourage the uptake of low emissions vehicles as the UK moves towards decarbonising transport. 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. Fill out this short enquiry form. 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. Call or email us during normal office hours to talk about the specifics of your arrangements. Sign a simple contract to sign up to our free service. This has been updated for the current tax year of 2022/23. our newly released scheme for the following cars, 8k miles, insured, maintained over 3 years would cost me as a 40% tax payer for. Octopus Electric Vehicles Limited is authorised and regulated by the Financial Conduct Our electric car salary sacrifice scheme is free for employers to join and can be set up within just a couple of weeks. This works when an employer and employee come to an agreement over salary. www.octopusev.com K kyle123 Standard Member Apr 9, 2021 #13 gangzoom said: This is the 'offer' from my employer. Authority, firm reference number 809736, company number 10754317. 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. 1150 PA. 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. Project Mondo G is a Mercedes G-Wagen in a puffer jacket, New Honda's Civic: family car with rebellious bad boy in its line-up, Advert for the 1998 first generation of the Audi TT, Ford scrapping 1,300 jobs in UK amid European overhaul. The Nissan Leaf is one of the most popular electric vehicles currently leased by Octopus. The BiK rates are calculated based on the cars CO2 emissions. 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. Same here, and zero credit check etc. But really, it's not. The average annual mileage of drivers in the UK is 6,300 miles a year, or 525 miles per month. 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. Octopus Weve got you completely covered.Joining our salary sacrifice scheme is easy. There has been a surge in demand for EVs as people become more environmentally conscious. It is available to all businesses particularly those with fewer than 1,000 employees which may struggle to access similar schemes. 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.. 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. 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. Salary sacrifice lets you make contributions to your pension and helps to save on National Insurance at the same time. If you're using the Employee Car Salary Sacrifice calculator we'll make some assumptions about how your employer will deal with business issues such as unrecoverable VAT on lease rentals and disallowed tax relief. * Please note that these can be expressed as a cash amount or percentage of your salary, Annual Employer Contribution (%) Have we let energy giants make too much profit? 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. In this case, the company pays 745.41 plus an unrecoverable VAT of 53.19 which equals 798.60. Salary sacrifice: Monthly cost of tyres for Corsa-e SE Premium = 0. 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. Octopus Electric Vehicles Limited is authorised and regulated by the Financial Conduct They all offer electric cars which will result in a lower Benefit in Kind (BiK) tax and no road tax. 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. That helps us fund This Is Money, and keep it free to use. Heres How Were Democratising Electric Vehicle Access At Loveelectric.. Ideally, they arent spending hours trying to order a car, and the experience is relatively intuitive. 1 Home Entertainment Tech Resource. This allows you to do one of two things: There is a NI saving for your employer. If youre taking out a lease on a petrol or diesel car, youll be paying much more in fuel costs than you would if you were leasing an electric car. Octopus may introduce An employer can set up a salary sacrifice scheme and must mention the scheme in your contract or terms and conditions of employment. Octopus Electric Vehicles' new scheme gives employees access to every EV on the market with a range of over 100 miles of which there are over thirty, up from just five in 2017. The lot. Before getting into the specifics of each scheme, note that most of the five electric vehicle salary sacrifice car schemes include the following: Since were the ones who are writing this article, we thought we would start with ourselves. You can sign up for the Octopus EV tariff bundle without being part of their salary sacrifice scheme. Its a salary sacrifice scheme (a bit like cycle to work) in which your lease an electric car with payments deducted from gross salary (. 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. loveelectric was founded when our CEO, Steve, wanted an electric car and realised that purchasing one was out of budget. Fro example, I was getting through a set of good tyres every year (front at least). Feb 9, 2023. Sounds complicated. This is the really fun part. Salary Sacrifice 0. Because our electric car salary sacrifice is one all-inclusive price that covers everything you need to hit the road, this comparison gives drivers savings of nearly 70 per month while letting them switch to a brand new, top-spec electric car. 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. 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. Love Electric Financial Services Limited is a credit broker and not a lender. Thats where its important to have early termination protection in place. New: Octopus Electric Vehicles has launched a new salary sacrifice scheme for businesses. EV terminology you need to know. Make. But it is now its own dedicated leasing company, meaning it will own the vehicles themselves. 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. Launch 1. Personal lease: Monthly cost of tyres for Corsa 1.2 SE Edition = 10.83Through our salary sacrifice scheme, well cover punctures and sidewall damage. 4,000 free miles of home charging with Intelligent Octopus. Personal lease: Monthly cost of insurance for Corsa 1.2 SE Edition = 40.33. This is because these factors impact on how much you might be recharged by your employer in a Car Salary Sacrifice plan. The salary sacrifice tax savings are particularly attractive for me. All the set-up is carried out by your employer. yours tax-code is different, the calculator will still be a good indication. There are already many similar cycle to work schemes in place where workplaces provide their employees with bikes to get to and from their office. Editor, Marcus Herbert, https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim23035. This is why EV salary sacrifice schemes are such an attractive method of delivering a tax . To calculate your BiK rate you need three numbers: P11D value of the car x BiK tax band x your income tax bracket. Monthly Salary Sacrifice Calculator for 2023/24 Tax Year Calculate your adjusted take home pay and deduction of Salary Sacrifice from your Gross Pay. 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. Octopus said many drivers are saving 30 to 40 per cent and some up to 60 per cent. 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. You to a panel of third-party lenders or hirers and in such circumstances may receive a included with our EV salary sacrifice scheme? That means we can set you up with the scheme from start to finish. But much depends on what you do next. 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. 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. Money that you'd normally never see (because it goes straight out of your pay to HRMC) goes directly towards paying for your car. It is just structured in a different way. Get started with loveelectric for free. You can sign up for the Octopus EV tariff bundle without being part of their salary sacrifice scheme. You may also find the following Finance calculators useful. included in the lease price. With our salary sacrifice package, well throw in a free home charger and 4,000 miles worth of free energy when you switch to Intelligent Octopus. Authority, firm reference number 809736, company number 10754317. : Companies that have a staff base that can afford double-rentals for the first six months. Drivers of hybrid cars can pay BiK rates of up to 10 times more than an electric car would pay. None require an upfront deposit from an employer or employee. Not much post-care or educational content for employees. KIA, Polestar, Mercedes, VW and Porsche also all have a share. That gives the right answer for most people. You to a panel of third-party lenders or hirers and in such circumstances may receive a The lot. For me to be greener in the short term I'd prefer to make sure my home is better insulated, use 100% renewable energy etc. 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. 1. The actual amount will depend on which costs the employer wishes to take in to account. Feb 16, 2023. Go To Calculator. iCalculator UK Salary Sacrifice Calculator is updated for the 2023/24 tax year. Wevee and loveelectric and other brokers make money by charging a commission on top of the rental. 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.. 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. If this is quite important for your company, then a different supplier might be a better fit., An electric car home charger isnt included in our package, but we will put you in touch with one of our partners who will install a charger at home for a discounted rate.. An electric car salary sacrifice scheme is a way for your employees to get an EV as an employee benefit and save on tax. Jump To Car Salary Sacrifice Calculator 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. 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. Also bear in mind the wait for the Tesla MAY be long, may be quick. VAT registration number 386404284. Perhaps a concrete example would make this clearer. They offer cars via contract hire and salary sacrifice. Yeah, seems so. Each salary sacrifice calculator allows you to enter salary sacrifice as a fixed amount of a percentage of your Gross pay. 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. 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. It also assumes the employer wishes to reflect any net savings they made in National Insurance by reducing the gross sacrifice so an adjustment of 10 per cent has been made. Lease vs subscription. 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. For example, for a 40 per cent tax rate payer opting for a Tesla Model 3, the typical net cost for an employee is . The sacrifice the employee makes out of gross salary is 726 which, after tax, is equivalent to paying 435. I'd imagine the dealer will be falling over themselves to have that car back. However, Nissan now has a share of 31 per cent compared to 22 per cent last year whilst Audi's have a share of five per cent, up from three per cent in 2020. Powered by Xenforo, Hosted by Nimbus Hosting, Original design Critical Media Ltd. Not a broker or leasing company: they are an authorised representative of a third party broker, Maintenance, servicing, MOT, breakdown cover and tyre replacements are optional rather than automatically included.. Keep in mind that this amount cannot be salary sacrificed so the fee will the gross amount before taxes. It simply means their rental prices cannot match the ones of large leasing companies. Benefit in Kind tax is calculated based on two things: the cars CO2 emissions and the cars P11D value.

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