Sign a simple contract to sign up to our free service. Some employers choose not to include insurance, but its up to your company. The 2% rate is fixed until April 2025 at 2%, and then will increase by 1% each year until 2028. Access 6 hours of super off-peak green energy between 11.30pm to 5.30am. So, it can be a win-win situation. This has been updated for the current tax year of 2022/23. 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 =. We'll check your eligibility then get in touch to answer any questions you may have. They offer cars via contract hire and salary sacrifice. I've always bought nearly new cars and run them a long time (as is the FIRE way, Skoda Octavia FTW! 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. : Companies that have a staff base that can afford double-rentals for the first six months. Contact us at hello@loveelectric.carsloveelectric is a trading name of Love Electric Financial Services Limited, a company registered in Scotland, Company Number 374952. All the set-up is carried out by your employer. We are no longer accepting comments on this article. Use our EV salary sacrifice calculator below to find out how much you could save each month. Ideally, they arent spending hours trying to order a car, and the experience is relatively intuitive. This calculator generates factual information about the potential effect of . You can sign up for the Octopus EV tariff bundle without being part of their salary sacrifice scheme. Salary sacrifice lets you make contributions to your pension and helps to save on National Insurance at the same time. 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. HMRC treats the benefit separately from your salary, which means you pay the tax before it arrives into your bank account. Anybody done this scheme? This is Money is part of the Daily Mail, Mail on Sunday & Metro media group. www.octopusev.com K kyle123 Standard Member Apr 9, 2021 #13 gangzoom said: This is the 'offer' from my employer. It is simple to follow and shows how you can benefit from doing this. 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. 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. Yeah, seems so. Best salary sacrifice car scheme comparison table, What to look out for when choosing an EV salary sacrifice scheme, Electric Cars are Expensive. The monthly lease could be too expensive for employees, or the early termination policy wont be a good fit. 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 you don't have all the details then allow about 5 minutes to work through the stages of the calculator. Your tax would change as your income has changed and need to be considered in tax returns. This does not affect our editorial independence. Weve got you completely covered.Joining our salary sacrifice scheme is easy. Limited access. Salary sacrifice is a way of getting access to a brand new car through your gross salary and saving up to 40%. There has been a surge in demand for EVs as people become more environmentally conscious. Octopus said many drivers are saving 30 to 40 per cent and some up to 60 per cent. Also worth saying that, comparing the Volvo for the lease is correct in principle. Setting up on the scheme is easy. Feb 16, 2023. You can calculate your take home pay based of your annual income, PAYE, NI and tax for 2023/24. Will employees get their questions answered quickly. 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. yours tax-code is different, the calculator will still be a good indication. commission. If the employee resigns after 3 months into the lease (and doesnt transfer the contract or take it with them to a new employer) they will only have to pay a one-off fee worth one month of the gross lease payment.. And at loveelectric, we provide one of the best policies on the market. * Please note that these can be expressed as a cash amount or percentage of your salary, Annual Employer Contribution (%) Octopus Electric Vehicles reserves the right to stop this promotion at any time. 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 optimal number of days a home needs to be on the market to get the best price from its sale, MARKET REPORT: Capco cheers West End recovery ahead of its 5bn mega merger with rival London landlord Shaftesbury, Persimmon to slash building of new homes with UK housing crisis set to deepen amid higher mortgage rates and the cost of living crunch, ReckittBenckiser sees profits soar as string of price hikes more than offset dwindling demand, Aston Martin losses mount on delayed deliveries and sterling weakness but carmaker's shares soar as it eyes positive cash flow in 2023, Bank of England governor Andrew Bailey says more interest rate hikes are 'not inevitable', Takeover of UK satellite giant Inmarsat ready for blast off as regulators give provisional green light to 5.4bn deal. For other cars no. I'd imagine the dealer will be falling over themselves to have that car back. Meet the smart meter addicts: The dad who cut back on 1p coffees, the teacher on a 5.50 daily gas limit and the mum so obsessed she hid hers in a drawer! 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. A good level of cover will typically include roadside assistance; home recovery; national recovery; parts and repairs; and onward travel. The salary sacrifice tax savings are particularly attractive for me. Affiliate links: If you take out a product This is Money may earn a commission. Employers will first rent an electric car from a supplier with the employee then given the option to rent this car in exchange for a part of their salary. or less. Salary sacrifice: Corsa-e SE Premium initial payment = 0. I think for the lease to become worthwhile in purely cash terms over four years the Volvo would need to be worth only about 30% of its original value in 2026, have had a huge amount spent on maintenance, or diesel shooting up to seriously astronomical levels per litre, none of which I think is realistic. Volvo assume 400 insurance, 150 tax, 300 tyres, 300 servicing. Insurance is an essential part of keeping your car on the road. Not sure that Octopus/Tasker are routinely hiking the price mind. (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 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. 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. Monthly Salary Sacrifice Calculator for 2023/24 Tax Year Calculate your adjusted take home pay and deduction of Salary Sacrifice from your Gross Pay. Their early termination policy covers dismissal. 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. 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). I think it sounds a great scheme but for me it simply would not be cost effective. An employer can set up a salary sacrifice scheme and must mention the scheme in your contract or terms and conditions of employment. No standing. Editor, Marcus Herbert, https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim23035. Option to buy the car at the end of the agreement. When taking out a personal lease, youre paying for your car from your income or savings after youve already paid tax. Heres how the costs of the two cars stack up against each other. 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. 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 The comments below have not been moderated. Personal lease: Monthly cost of lease for Corsa 1.2 SE Edition = 190.04. So, if, in 3 years, you pay it off, keep it, it's going to running it as the only outgoing and, a depreciating asset. Car leasing is the same as a long term rental. Body type. The sacrifice the employee makes out of gross salary is 726 which, after tax, is equivalent to paying 435. Some 15 companies are already live on the scheme, including Huel and Purplebricks, making it available to 1,491 employees across the UK. 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. Filter. Help your employees benefit from one of the best employee benefit schemes going without it costing you a penny. How are you going to help us activate employees? 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. Employees will pay a fixed monthly cost for the vehicle whichis made using their gross salary which is their income before tax or net salary plus their national insurance and income tax. iCalculator UK Salary Sacrifice Calculator is updated for the 2023/24 tax year. 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. JavaScript is disabled. Because electric cars produce zero emissions theres no road tax to pay. Thats where its important to have early termination protection in place. 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