Europe's busiest forums, with independent news and expert reviews, for TVs, Home Cinema, Hi-Fi, Movies, Gaming, Tech and more. No off-street parking? 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. loveto halve the cost of your new electric car? Some links in this article may be affiliate links. Editor, Marcus Herbert, https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim23035. Yes, you give up part of your gross income to pay for the car. Sounds complicated. 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. A dealer etc will arrange this for you. You may already be familiar with other salary sacrifice schemes, for example things like cycle to work, pension or childcare schemes. 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. 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 are a leasing company and own some of the cars. This works when an employer and employee come to an agreement over salary. 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. The P11D value is the list price of your car including VAT, combined with any delivery charges, but doesnt include the cars first registration fee or annual road tax. By comparison, combustion vehicles are subject to a typical BIK tax of 25 to 35 per cent. included in the lease price. 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. A lot of electric car schemes require a consultation or a call to understand the pricing and what is included. The lot. Use our quote tool to see what we can offer you and your team. Change the numbers to suit you. Early termination only covers 10% of claims or ten cars - whichever is greatest. Thats where its important to have early termination protection in place. Car Model Annual Salary () Calculate How it works Simply select the electric car you're interested in and enter your annual salary. We do not allow any commercial relationship to affect our editorial independence. You may also find the following Finance calculators useful. The cost of the MOT isn't a problem for most drivers, but the cost of repairs that the MOT uncovers can be hefty. We've split our Car Salary Sacrifice calculator between employers and employees. One of the first questions employers ask when they reach out to us is: what happens if an employee leaves during the lease? 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.. 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. Now press "Calculate" to get the results. Companies of any size that want to offer employees an affordable car and care about a good car ordering and employee experience. Make. 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. Our salary sacrifice scheme is the perfect choice if you want to make savings on switching to electric through your salary, and ditch the hassle of car ownership. In addition, 8,000 free miles of green electricity with home energy from Octopus Energy enough for an average UK driver to drive for free for a year. Your initial deposit can be between 1 - 12 months of the monthly lease cost, so youre parting with anywhere from a few hundred to a few thousand pounds at the start of the process. 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. 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. 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. The calculation uses the most common tax-code of "1257L". Take advantage of our salary scheme through your employer. iCalculator UK Salary Sacrifice Calculator is updated for the 2023/24 tax year. Sorry Scotland. Salary sacrifice: Monthly cost of salary sacrifice for Corsa-e SE Premium = 330.08 Maintenance, Servicing and Repairs An MOT is a legal requirement that costs around 55 per year. "I don't see any cause for further discussion or comment. Salary sacrifice is an employee benefits scheme that allows you to pay for a car out of your gross monthly pay. Use our EV salary sacrifice calculator below to find out how much you could save each month. is a credit broker and a vehicle hirer but not a consumer credit lender. This has been updated for the current tax year of 2022/23. Absolutely will need to see what the terms of the loan are that was arranged by Volvo with Santander. It will rise to 2 per cent over the next three years. This works when an employer and employee come to an agreement over salary. 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. The overall process is meant to be cost neutral for businesses as they can recover VAT and also save as they make lower National Insurance contributions due to the salary sacrifice - bothare used to calculate the employer's gross sacrifice. Limited access. KIA, Polestar, Mercedes, VW and Porsche also all have a share. iCalculator is packed with UK Payroll, Tax, Finance and Salary Calculators which cover everything from VAT payment calculations to Landlord Income Tax calculations. Fixed AmountPercentage of Salary. If you need more convincing check out our handy guide on why you should choose electric for your next car.Getting a car through your employer with our salary sacrifice scheme can save you up to 40% off the price of a brand new EV through Income Tax and National Insurance savings. Not much post-care or educational content for employees. Fill out this short enquiry form. 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! Who is Octopus EV good for? But much depends on what you do next. 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. The comments below have not been moderated. Win-win! 3. Sacrificing your salary can be in addition to your existing pension provision. Salary sacrifice: Monthly cost of salary sacrifice for Corsa-e SE Premium = 330.08. None require an upfront deposit from an employer or employee. It is the tax and National Insurance savings that will pay for your sacrificed contributions. An electric car salary sacrifice scheme is a way for your employees to get an EV as an employee benefit and save on tax. No need to find a quote or keep on top of annual payments, its all taken care of. Please check the important information below for the current assumptions. Whos Tusker good for? We are no longer accepting comments on this article. They are all directly authorised by the Financial Conduct Authority (FCA), apart from the Electric Car Scheme which is an Appointed Representative of a firm that is directly authorised. 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.. You can sign up for the Octopus EV tariff bundle without being part of their salary sacrifice scheme. A quick valuation on Carwow last night though had it at 34-35k. Theres also the BiK, but that's pretty insignificant in comparison to bulk amount. Our tax calculators are designed to make it easy for you to understand how much you pay and how your money is divided up. You save on National Insurance on the amount of your salary that you sacrifice. However, for the 2020 to 2021 financial year, the BiK rate for zero-emissions company cars was just 0 per cent meaning there was nothing to pay until this month, at which point it goes up to just one per cent. This is because these factors impact on how much you might be recharged by your employer in a Car Salary Sacrifice plan. Always remember anyone can post on the MSE forums, so it can be very different from our opinion. below). Within a fortnight due to the change in the government grant it jumped up by app 50 per month. 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. 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. 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. No queuing. Fiona Howarth, chief executive of Octopus Electric Vehicles, said: 'Salary sacrifice makes electric cars a no brainer making them significantly cheaper than their petrol or diesel counterparts. - whichever is greatest and employees what we can offer you and your.. For a car salary sacrifice is an employee leaves during the lease salary sacrifice: monthly of. 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