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. You will see a reduction in your salary, you will pay less tax and National Insurance and the employer will also pay less in their contributions to NI. Most importantly, you want to ensure the company knows what theyre talking about and can offer guidance. Have we let energy giants make too much profit? Fro example, I was getting through a set of good tyres every year (front at least). 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. Drivers of hybrid cars can pay BiK rates of up to 10 times more than an electric car would pay. Salary sacrifice: Monthly cost of insurance for Corsa-e SE Premium = 0. Heres How Were Democratising Electric Vehicle Access At Loveelectric.. Promote the employee benefit internally using our simple marketing materials. Love Electric Financial Services Limited is authorised and regulated by the Financial Conduct Authority; firm reference number 743264. These contributions are taken from your salary before tax and National Insurance are paid, so are tax efficient. Salary sacrifice is an employee benefits scheme that allows you to pay for a car out of your gross monthly pay. 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 P11D value that HMRC uses is basically the list price minus the government EV grant, more We offer everything for you to hit the road in a brand new EV. Employers and employees who want everything bundled together and include a charging solution and home energy tarriff. Change the numbers to suit you. For example, for a 40 per cent tax rate payer opting for a Tesla Model 3, the typical net cost for an employee is . Early termination only covers 10% of claims or ten cars - whichever is greatest. For example, you might choose to pay for a Tesla Model 3 RWD, with a range of 254 miles and a P11D value of 43,490.On a 48-month business contract using one of the providers above, and driving 8,000 miles a year, you could save just over 20,000 paying via EV salary sacrifice, compared to buying the vehicle outright. 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. Access 6 hours of super off-peak green energy between 11.30pm to 5.30am. This makes it easy for you to charge at night when power is cheapest. 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. Car Model Annual Salary () Calculate How it works Simply select the electric car you're interested in and enter your annual salary. Volvo assume 400 insurance, 150 tax, 300 tyres, 300 servicing. Now press "Calculate" to get the results. Drivers that order an EV through Electric Dreams before July 2021 also receive a free smart charger fully installed by the Octopus Energy Services team. 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. Employees pay Benefit in Kind tax on benefits they get from their employer on top of their salary. Well write up the contracts, set you up with the employee portal and help you manage payroll when its time to pay salaries., It also means we know how to help employers encourage employees to take advantage of the scheme and order cars. We work with a range of partners, including benefit providers and consultancies, to support their clients to drive electric. Employees can do test drive days possibly only for larger companies. 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. The launch comes as EVs reach a tipping point thanks to falling cost, government incentives and changing attitudes towards zero emission vehicles. If they've not signed up yet, send them our way. 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. and provides a breakdown of your annual salary with Monthly, Quarterly Weekly, Daily and Hourly pay illustrations. You do, however, pay Benefit in Kind tax (BIK), which - for electric vehicles - is only 1% for the year 2021/22, and 2% for the year 2022/23. Youll need to replace all four tyres every 2 years on average. That helps us fund This Is Money, and keep it free to use. Octopus It is available to all businesses particularly those with fewer than 1,000 employees which may struggle to access similar schemes. Keep in mind that this amount cannot be salary sacrificed so the fee will the gross amount before taxes. How do you manage the employees salary and payroll? Our electric car salary sacrifice scheme is free for employers to join and can be set up within just a couple of weeks. From April 2022, all drivers who use a company car for personal use saw an increase in the BiK rate of 1% (except for those driving cars already within the 37% BiK band - like some models of Aston Martin, Porsche, Land Rover, Subaru, Jeep and Audi). Octopus Electric Vehicles Limited is authorised and regulated by the Financial Conduct For example, make sure to ask what the providers partners are. 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. But it is now its own dedicated leasing company, meaning it will own the vehicles themselves. 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.. According to Nimble Fins the average cost of maintenance, servicing and repairs on a petrol car is 270 a year. Note: Looking to get started with a salary sacrifice scheme that has no hidden cost and offers the best early termination policies? 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. 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. Octopus or less. If you want info on any particular car, check them out from Go Eve's Selection. Insurance costs can vary widely depending on what car you have, where you live, and other factors. 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. 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.. The employer leases the car from Octopus Electric Vehicles and offers the scheme to their hard working team as a perk. The more realistic comparison would be between personally leasing a petrol or diesel car versus taking an EV via a salary sacrifice scheme. commission. 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. Octopus may introduce The company saves 53.19 on National Insurance meaning it is cost neutral for them. Our tax calculators are designed to make it easy for you to understand how much you pay and how your money is divided up. Ok this was acceptable. Registered office and trading address: 101 Rose Street South Lane, Edinburgh, EH2 3JG. And we include everything that they need to hit the road in their shiny new electric car. commission. Are investors underestimating the impact of rate rises? A collection of really good online calculators. Fill out this short enquiry form. 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. I've always bought nearly new cars and run them a long time (as is the FIRE way, Skoda Octavia FTW! Octopus has been providing salary sacrifice for the last year but only as a broker for other leasing companies. Octopus commission. 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. Always remember anyone can post on the MSE forums, so it can be very different from our opinion. United States Salary Tax Calculator 2022/23, United States (US) Tax Brackets Calculator, Statistics Calculator and Graph Generator, Grouped Frequency Distribution Calculator, UK Employer National Insurance Calculator, DSCR (Debt Service Coverage Ratio) Calculator, Arithmetic & Geometric Sequences Calculator, Volume of a Rectanglular Prism Calculator, Geometric Average Return (GAR) Calculator, Scientific Notation Calculator & Converter, Probability and Odds Conversion Calculator, Estimated Time of Arrival (ETA) Calculator, Input your total annual salary (the gross figure), Put in the annual contribution from your employer, Also put in the annual contribution that you pay, You can convert employee savings to pension contributions simply select Yes or No, Select the percentage of employer's National Insurance that the employer wants to retain. There might be hidden fees that wont appear until later in the implementation.. Electric car drivers can take advantage of cheap, 100% renewable energy overnight with the Intelligent Octopus EV tariff from Octopus Energy. Salary sacrifice lets you make contributions to your pension and helps to save on National Insurance at the same time. Filter. WeVee is a car leasing company that offers electric cars via corporate leasing, car sharing as well as the salary sacrifice scheme.. Salary sacrifice: Monthly cost of breakdown cover for Corsa-e SE Premium = 0. Lots of ad hoc running costs add up over time. They allow employers to set up an entire car fleet. There you go, the saving is in the 450 month you're paying as HP. Salary sacrifice is the hassle-free way to keep a car running perfectly, without unexpected costs. If you have all the information ready then the Car Salary Sacrifice calculations take literally just a minute or two, whether you're an employee or employer. It is just structured in a different way. Body type. Shortest delivery time. Octopus Electric Vehicles reserves the right to stop this promotion at any time. Making Tax Calculations Simple. So their fee comes out of charging double rent for the first 6 months, as well as an additional fee to the employer.. 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. Due to the increasing demand for electric vehicles, there are more electric vehicle salary sacrifice schemes that are set up every year. 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. 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. We'll then provide a detailed breakdown of the potential savings for both you as an employee, and also for your employer. Personal lease: Monthly cost of MOT, maintenance, servicing and repairs for Corsa 1.2 SE Edition = 22.50. 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. 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. Any prices quoted are subject to changes in law, regulation, tax or duty beyond our reasonable control. To get started with our Car Salary Sacrifice calculator here's what you will need for each version . Don't worry if you haven't got all this yet - you can still estimate the cost impact using values our Car Salary Sacrifice calculator will provide automatically. A dealer etc will arrange this for you. Electric car scheme customers will have to pay double rent for the first six or 12 months. Salary sacrifice: Corsa-e SE Premium initial payment = 0. Change the numbers to suit you. As we mentioned above, each salary sacrifice monthly lease will be different and include different services. That gives the right answer for most people. Click on the appropriate button below to get your Car Salary Sacrifice calculation started: Create an employer profile for taxes and pension contributions. Call or email us during normal office hours to talk about the specifics of your arrangements. There has been a surge in demand for EVs as people become more environmentally conscious. loveto join? 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