Octopus has been providing salary sacrifice for the last year but only as a broker for other leasing companies. Octopus Electric Vehicles reserves the right to stop this promotion at any time. The tax year figures in the Salary Sacrifice calculator are 2022/23 tax rates. For a better experience, please enable JavaScript in your browser before proceeding. Tusker monthly lease prices may be higher because they are a leasing company and offer lifestyle protection. With our salary sacrifice scheme, fully comprehensive insurance is normally included in your monthly payment. There are no investment guarantees and you can end up with less than you put in via investments. is a credit broker and a vehicle hirer but not a consumer credit lender. This does not affect our editorial independence. This makes it a very cost-effective way to lease an electric vehicle and allows you to save up to 40% on the cost of an electric car. 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. AIUI, the EV is then subject to 1% / 2% BIK until the end of tax year 2024/25 and anything could happen after that. Pay in 10,000 for bonus. "I don't see any cause for further discussion or comment. This works when an employer and employee come to an agreement over salary. Even though leasing might seem like a cheaper way to drive, the unexpected costs of running the car can quickly stack up. Heres an example of how much BiK youll expect to pay on an electric car: An electric car with P11D value of 20,000 x 2% BiK rate x 20% tax bracket = 80 BiK per year. That gives the right answer for most people. 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. included with our EV salary sacrifice scheme? 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. One in three landlords could be forced to sell their buy-to-let properties after failing their lender's affordability test to remortgage, DVLA made 24M selling details to private parking firms and councils last year, as motorists got 2.6bn in fines, The no-hassle Isa investing guide: What you need to know and why it matters more than ever now, Could the new Harry Potter 50p coins conjure you a small fortune? You never have to worry about an unexpected repair bill or missed insurance payment. 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. 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. 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. Find out how. It's also 100% anonymous, in case you were wondering. You save on National Insurance on the amount of your salary that you sacrifice. 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. 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. 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. Below is a chart summarising some of the leading electric car schemes in the UK.. Sign a simple contract to sign up to our free service. At all times, if an employee resigns they can transfer the lease to another employee or take the lease with them to their new employer (if eligible) at no extra cost. VAT registration number 386404284. With most leases, the monthly price only includes the cost of the car. Make sure to understand what youre paying for and what the terms are. Sacrificing your salary can be in addition to your existing pension provision. Our electric car salary sacrifice scheme is free for employers to join and can be set up within just a couple of weeks. According to Nimble Fins, the average cost of running a petrol or diesel car in 2022 is 3,000 a year. They have a Carbon Standard offsetting project that offsets all their salary sacrifice cars. By essentially giving up a portion of your salary, the amount you get paid is reduced which decreases the amount of income tax and National Insurance you pay.Read more frequently asked questions about salary sacrifice here. It is often a pension contribution. Get 4,000 miles of Electroverse credit to use across the UK's charging network. Fill out this short enquiry form. WeVee is a car leasing company that offers electric cars via corporate leasing, car sharing as well as the salary sacrifice scheme.. 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. We do not allow any commercial relationship to affect our editorial independence. Jump To Car Salary Sacrifice Calculator You also want to ensure employees have an outstanding customer experience when ordering a car. Octopus Electric Vehicles has revealed a new 100 per cent electric car leasing service for businesses looking to become more environmentally friendly. Sounds complicated. This is Money is part of the Daily Mail, Mail on Sunday & Metro media group. The employee pays for the car with a portion of their salary before taxes, saving money on tax and getting a brand new EV in return. You don't have to put in any work for this to happen. 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. 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 =. 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. Essentially, salary sacrifice means employees agree to give up part of their salary in exchange for a benefit, in this instance the benefit is a 'green' car. These benefits are non-cash. Who is loveelectric good for? The 2% rate is fixed until April 2025 at 2%, and then will increase by 1% each year until 2028. Yes, you give up part of your gross income to pay for the car. If Octopus Electric Vehicles continues to offer business contract hire leasing packages as a broker. Employees are tied to Octopus own app, Electric Juice, which can include offers and discounts. commission. 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. 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. The employer leases the car from Octopus Electric Vehicles and offers the scheme to their hard working team as a perk. 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. So, it can be a win-win situation. Registered office and trading address: 101 Rose Street South Lane, Edinburgh, EH2 3JG. Decide who you will open up the scheme to e.g. That's the group's vision and the website goes on to explain more about that goal. Authority, firm reference number 809736, company number 10754317. The cost of the MOT isn't a problem for most drivers, but the cost of repairs that the MOT uncovers can be hefty. Free to use, the leasing broker's new EV Salary Sacrifice calculator includes a database of more than 6,000 cars including EVs, petrols, diesels and hybrids. Ok this was acceptable. Early termination only covers 10% of claims or ten cars whichever is greatest. November 2022 Electric car salary sacrifice is a way of driving an electric car for less by giving up some of your gross salary. 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. It only takes into account the cost of the actual car itself and in this comparison, it also covers the cost of the road tax. But it is now its own dedicated leasing company, meaning it will own the vehicles themselves. They do vary! Here are some cheap and easy tricks that will keep your Persimmon warns on profits and slashes dividend by 75% as Record 330million prizes will be paid to Premium Bonds UK's electric car revolution stalls: Britain falling fourth best-selling new passenger vehicle in March, eliminate BIK tax for employees taking an EV via salary sacrifice, Do not sell or share my personal information. The comments below have not been moderated. Is commercial property a great value investing opportunity? How do you manage the employees salary and payroll? Octopus said many drivers are saving 30 to 40 per cent and some up to 60 per cent. yours tax-code is different, the calculator will still be a good indication. Drop us an email and well be in touch within 24 hours. So their fee comes out of charging double rent for the first 6 months, as well as an additional fee to the employer.. 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. Ready to find out whats so special about our EV salary sacrifice scheme? 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. 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. Launch 1. 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. All the set-up is carried out by your employer. If you don't have all the details then allow about 5 minutes to work through the stages of the calculator. Click on the appropriate button below to get your Car Salary Sacrifice calculation started: Create an employer profile for taxes and pension contributions. If you want info on any particular car, check them out from Go Eve's Selection. Option to buy the car at the end of the agreement (however you wont get a settlement figure in advance). 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. Our dedicated team are on hand to support whenever you need it. Go To Calculator. Fixed AmountPercentage of Salary. Prepare for peak pothole season! Check out this guide that explains why companies choose our salary sacrifice scheme. 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. Editor, Marcus Herbert, https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim23035. You to a panel of third-party lenders or hirers and in such circumstances may receive a Youll need to replace all four tyres every 2 years on average. Get started with loveelectric for free. Europe's busiest forums, with independent news and expert reviews, for TVs, Home Cinema, Hi-Fi, Movies, Gaming, Tech and more. 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