octopus ev salary sacrifice calculator

The BiK rates are calculated based on the cars CO2 emissions. Powered by Xenforo, Hosted by Nimbus Hosting, Original design Critical Media Ltd. This provides savings of 290 per month, inclusive of income tax and national insurance with just 14 in BiK tax and equates to savings of 13,920 over a four year period. Help your employees benefit from one of the best employee benefit schemes going without it costing you a penny. You will see an alteration to your contract, where you agree to swap part of your salary in exchange for other benefits. They do vary! Get started with loveelectric for free. Their monthly lease prices may be higher because they are middle-men to middle-men, serving as an appointed representative of a broker. Salary. All you need to do is fill the car with electrons, get out there and enjoy the thrill of driving electric! 1 min read. Fixed AmountPercentage of Salary, Annual Employee Contribution (%) 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 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? Employees can access both combustion and electric cars. An MOT is a legal requirement that costs around 55 per year. 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. 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 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 =. Feb 24, 2023. Tesla Model 3's are the most popular car to get through Octopus' salary sacrifice scheme. 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. New: Octopus Electric Vehicles has launched a new salary sacrifice scheme for businesses. AVForums.com is owned and operated by M2N Limited, Our registered address is UK House, 5th Floor, 164-182 Oxford Street, London, W1D 1NN. Sorry Scotland. company number 03997482, registered in England and Wales. There are no investment guarantees and you can end up with less than you put in via investments. Their early termination policy covers dismissal. Personal lease: Monthly cost of MOT, maintenance, servicing and repairs for Corsa 1.2 SE Edition = 22.50. 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. Are electric cars always more expensive than their petrol or diesel equivalent? Making Tax Calculations Simple. You save on National Insurance on the amount of your salary that you sacrifice. You also want to ensure employees have an outstanding customer experience when ordering a car. Personal lease: Monthly cost of tyres for Corsa 1.2 SE Edition = 10.83Through our salary sacrifice scheme, well cover punctures and sidewall damage. 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 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). included with our EV salary sacrifice scheme? 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. Customers ask us why the total cost of an electric car through salary sacrifice can seem higher than taking out a personal lease. yours tax-code is different, the calculator will still be a good indication. No filling. One of the reasons Octopus has decided to start the scheme now is thanks to the low company car tax rates on EVs which can make them a hugely beneficial option for those looking to help the environment. 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. A quick valuation on Carwow last night though had it at 34-35k. HMRC treats the benefit separately from your salary, which means you pay the tax before it arrives into your bank account. You to a panel of third-party lenders or hirers and in such circumstances may receive a commission. The rate went up to 1% in April 2021, and changed again in April 2022 to 2%. It is often a pension contribution. We've pre-filled some sample data. Read more frequently asked questions about salary sacrifice here. is a credit broker and a vehicle hirer but not a consumer credit lender. 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. 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 Octopus said many drivers are saving 30 to 40 per cent and some up to 60 per cent. The more realistic comparison would be between personally leasing a petrol or diesel car versus taking an EV via a salary sacrifice scheme. 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. There is less of a focus on post-care and helping employees get set up with cars (based on. Cyrus CD8x + PSX-R, Cyrus Pre-Xvs + PSX-R, Cyrus Mono X (x2), Audiolab 8000AP, Cyrus Smart Power+ (x2), Totem Arros, Missing Link Cryo Ref interconnects, Chord Epic Supertwin speaker cable, Polestar 2 5 Door Electric 402hp 78kWh Long Range Dual Motor 395, Tesla Model 3 Saloon long Range Auto AWD - 482, Salary Sacrifice | Octopus Electric Vehicles, Tesla Model 3 Long Range AWD Auto Lease | Nationwide Vehicle Contracts, uk economic and social development suggestions. The regular leases including fuel, insurance and maintenance for the identical car? Whos Tusker good for? Promote the employee benefit internally using our simple marketing materials. A further 20 more models will be available later in 2021. The salary sacrifice tax savings are particularly attractive for me. Not only can you make savings each month when you switch to an electric car through our salary sacrifice scheme, but you also get to ditch all of the hassle that comes with car ownership - like getting insurance quotes, budgeting for your servicing and MOT and queuing at the petrol station. Your car is ready to go when you are. 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. for use in every day domestic and commercial use! Heres how the costs of the two cars stack up against each other. In this case, the company pays 745.41 plus an unrecoverable VAT of 53.19 which equals 798.60. Use our quote tool to see what we can offer you and your team. Also bear in mind the wait for the Tesla MAY be long, may be quick. Note: Looking to get started with a salary sacrifice scheme that has no hidden cost and offers the best early termination policies? Not sure that Octopus/Tasker are routinely hiking the price mind. 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. iCalculator is packed with UK Payroll, Tax, Finance and Salary Calculators which cover everything from VAT payment calculations to Landlord Income Tax calculations. Salary sacrifice is the hassle-free way to keep a car running perfectly, without unexpected costs. Check out this guide that explains why companies choose our salary sacrifice scheme. 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. The calculation uses the most common tax-code of "1257L". The launch comes as EVs reach a tipping point thanks to falling cost, government incentives and changing attitudes towards zero emission vehicles. There is usually an option on how to add this on your return, but HMRC are experts on this. The launch of Electric Dreams comes exactly one year on from the UK Government's move to eliminate BIK tax for employees taking an EV via salary sacrifice. Drivers can get hit with costly bills of hundreds, if not thousands of pounds when something goes wrong with their car. Feb 9, 2023. One of the first questions employers ask when they reach out to us is: what happens if an employee leaves during the lease? Salary sacrifice: Monthly cost of tyres for Corsa-e SE Premium = 0. Leases are 24-48 months contracts for new cars. It may not display this or other websites correctly. '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. 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. 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. Option to buy the car at the end of the agreement. You can calculate results based on either a fixed cash value or a certain proportion of your salary. (adsbygoogle = window.adsbygoogle || []).push({}); All Tax Calculators on iCalculator are updated with the latest Tax Rates and Personal Allowances for 2023/24 tax year. 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. 2. Feb 16, 2023. Copyright 2021 loveelectric. 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. 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.. Since they do not own the relationship with the leasing company, they wont have full responsibility over their regulatory conduct, systems and processes. Employers and employees who want everything bundled together and include a charging solution and home energy tarriff. Take advantage of our salary scheme through your employer. Find out how. The firm said it is introducing the programme in response to a surge in interest in electric vehicles from businesses. You don't have to put in any work for this to happen. 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. Octopus Electric Vehicles Limited is authorised and regulated by the Financial Conduct For a better experience, please enable JavaScript in your browser before proceeding. If the employee resigns in under 3 months (and doesnt transfer the contract or take it with them to a new employer) early termination protection cannot be applied and the employee would be liable for up to 50% of the rest of the lease. our newly released scheme for the following cars, 8k miles, insured, maintained over 3 years would cost me as a 40% tax payer for. 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. : Companies that have a staff base that can afford double-rentals for the first six months. They all offer electric cars which will result in a lower Benefit in Kind (BiK) tax and no road tax. www.octopusev.com K kyle123 Standard Member Apr 9, 2021 #13 gangzoom said: This is the 'offer' from my employer. This has been updated for the current tax year of 2022/23. Electric vehicles are also increasing in popularity with March the best single month for sales of new zero-emission electric cars on record, beating last December by less than 100 sales, according to figures fromthe Society of Motor Manufacturers and Traders (SMMT). The above example relies on the motorist driving 8,000 miles a year for four years and also makes the assumption that the company is eligible to recover VAT - 50 per cent on Finance and 100 per cent on Services. Because electric cars produce zero emissions theres no road tax to pay. 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. Youll drive the car over a set period, and return it to the leasing company at the end of the agreement. A good level of cover will typically include roadside assistance; home recovery; national recovery; parts and repairs; and onward travel. 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. I think it sounds a great scheme but for me it simply would not be cost effective. These contributions are taken from your salary before tax and National Insurance are paid, so are tax efficient. For this reason, you want to ensure the team communicates clearly and quickly. Octopus Most have early termination protection (but each one will include different terms, so make sure to ask). Our electric car salary sacrifice scheme is free for employers to join and can be set up within just a couple of weeks. We'll install your home charger. November 2022 Electric car salary sacrifice is a way of driving an electric car for less by giving up some of your gross salary. Authority, firm reference number 809736, company number 10754317. Weve used Nimble Fins averages and our own research based on like-for-like services to crunch the numbers for this comparison. The 2% rate is fixed until April 2025 at 2%, and then will increase by 1% each year until 2028. is a credit broker and a vehicle hirer but not a consumer credit lender. Tusker monthly lease prices may be higher because they are a leasing company and offer lifestyle protection. Salary sacrifice: Monthly cost of insurance for Corsa-e SE Premium = 0. We understand that loveelectric might not be a good fit for everyone and that other salary sacrifice companies might be a better fit at times. Limited access. For example, make sure to ask what the providers partners are. Tesla is still one of the most popular electric vehicle leased through Octopus EV but its share dropped from 50 per cent to 28 per cent from the first three months of 2020 compared to the same time frame this year. Body type. The comments below have not been moderated. Fro example, I was getting through a set of good tyres every year (front at least). How do you manage the employees salary and payroll? 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.

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