Authority, firm reference number 809736, company number 10754317. Wevee and loveelectric and other brokers make money by charging a commission on top of the rental. Read this guide to Salary Sacrifice and How Salary Sacrifice can reduce the amount of tax you pay. 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.. Tusker primarily works with companies with 1,000+ employees. We work with a range of partners, including benefit providers and consultancies, to support their clients to drive electric. Also, there is a slight bump to take care of loan car and also the fact that resignation (and some other things) do allow you to give the car back at no penalty (so they have to get that back somewhere). Take advantage of our salary scheme through your employer. We don't as a general policy investigate the solvency of companies mentioned (how likely they are to go bust), but there is a risk any company can struggle and it's rarely made public until it's too late (see the. 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.. Personal lease: Corsa 1.2 SE Edition initial payment = 389.03 (equivalent to 1 month lease + broker fee of 198.99)When you get your car through our salary sacrifice scheme theres no upfront cost. Same here, and zero credit check etc. We do not write articles to promote products. Thats why we make it super easy for drivers who use our salary sacrifice scheme by covering everything they need to hit the road in one monthly payment. This is Money takes a look at Octopus Electric Vehicles' new programme and explains exactly how salary sacrifice schemes work. for use in every day domestic and commercial use! 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. Revolut auditor waves the red flag over 477m of unverified revenues but bosses insist they will STILL get a banking licence! Salary Sacrifice 0. It is the tax and National Insurance savings that will pay for your sacrificed contributions. 2. Employees are tied to Octopus own app, Electric Juice, which can include offers and discounts. 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. The more realistic comparison would be between personally leasing a petrol or diesel car versus taking an EV via a salary sacrifice scheme. Heres how the costs of the two cars stack up against each other. Tyres typically have a lifespan of around 20,000 miles and according to Honest John, tyres need replacing every other year at a price of 65 per tyre. You to a panel of third-party lenders or hirers and in such circumstances may receive a Read more frequently asked questions about salary sacrifice here. Use our quote tool to see what we can offer you and your team. Their early termination policy covers dismissal. Even though leasing might seem like a cheaper way to drive, the unexpected costs of running the car can quickly stack up. Whos Tusker good for? included with our EV salary sacrifice scheme? 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. 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. This can only happen when your employer adjusts the terms of your contract. The sacrifice the employee makes out of gross salary is 726 which, after tax, is equivalent to paying 435. 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. You can keep hold of your cash and pay for your car out of your monthly salary at one standard cost across the period. Our tax calculators are designed to make it easy for you to understand how much you pay and how your money is divided up. At home charger and installation is included in the lease cost. Salary sacrifice is a way of getting access to a brand new car through your gross salary and saving up to 40%. Octopus is best known as an electricity and gas provider, but in 2018 they branched out to electric vehicles and the salary sacrifice scheme.. What will the onboarding experience be like for the employee? Thats where its important to have early termination protection in place. The regular leases including fuel, insurance and maintenance for the identical car? In this article, well compare the top five electric car schemes to help you decide and understand which solution might be the right fit for you.. Octopus Electric Vehicles has revealed a new 100 per cent electric car leasing service for businesses looking to become more environmentally friendly. 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. Copyright 2000-2023 M2N Limited E. & O.E. 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. The cost of the MOT isnt a problem for most drivers, but the cost of repairs that the MOT uncovers can be hefty. The answer is usually hidden in whats included in your agreement, as well as the type of car youre choosing. Insurance is an essential part of keeping your car on the road. Personal lease: Monthly cost of insurance for Corsa 1.2 SE Edition = 40.33. It's also 100% anonymous, in case you were wondering. 'We are thrilled to see so many customers offering our service to their employees already and the signs are that many more will sign-up in 2021.'. Companies with 1,000+ employees that want to offer combustion cars and possibly a salary sacrifice scheme. Find out how. BCH and selected Salary Sacrifice deals. 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. You will see an alteration to your contract, where you agree to swap part of your salary in exchange for other benefits. All include car insurance, breakdown cover, servicing, repair and MOT (although some are optional). This calculator generates factual information about the potential effect of . Wales. Drivers of hybrid cars can pay BiK rates of up to 10 times more than an electric car would pay. Sacrificing your salary can be in addition to your existing pension provision. Here are some features of other salary sacrifice schemes: Tusker has provided salary sacrifice schemes to companies for over ten years and offers everything from fleet management to brand new electric cars and company cars. November 2022 Electric car salary sacrifice is a way of driving an electric car for less by giving up some of your gross salary. . Help your employees benefit from one of the best employee benefit schemes going without it costing you a penny. New to Salary Sacrifice? Ideally, you want the confidence that employees will take advantage of the benefit and thats something that the provider should help with.. 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? You get taxed a small amount for the benefit of having the car, whilst making other savings on Income Tax and National Insurance. Editor, Marcus Herbert, https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim23035. Make sure to understand what youre paying for and what the terms are. With salary sacrifice for an electric car, as an employee you're not taxed on the salary you give up. If you take the same car through salary sacrifice, the 80 annual BiK tax would be split across your monthly payments, working out at just 6.67 per month. loveto join? According to Auto Express, 10% of cars that fail their MOT need new tyres. 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. Technically you are still paid the same. Oh, and it uses tax rates for England and British Vehicle Rental & Leasing Association (BVRLA) member number: 10549. 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. Octopus says it realised how good EV salary sacrifice was and decided to design a scheme that makes it easy and cost-neutral for companies to set up and run. is a credit broker and a vehicle hirer but not a consumer credit lender. 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. This is the really fun part. Your car is ready to go when you are. Have we let energy giants make too much profit? Companies that are interested in business car leasing as well as salary sacrifice. 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. Tusker monthly lease prices may be higher because they are a leasing company and offer lifestyle protection. 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! Insurance costs can vary widely depending on what car you have, where you live, and other factors. Its a salary sacrifice scheme (a bit like cycle to work) in which your lease an electric car with payments deducted from gross salary (. Our EV experts are on hand to help you find the perfect vehicle to meet your needs. 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. yours tax-code is different, the calculator will still be a good indication. 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. This website uses the TMDb API but is not endorsed or certified by TMDb. Octopus Electric Vehicles Limited is authorised and regulated by the Financial Conduct We've pre-filled some sample data. The scheme, called Electric Dreams, uses a system known as 'salary sacrifice' which allows staff to pay for a new electric vehicle out of their gross salary, potentially saving them thousands of pounds on national insurance and income tax. So their fee comes out of charging double rent for the first 6 months, as well as an additional fee to the employer.. Call or email us during normal office hours to talk about the specifics of your arrangements. Employers and employees who want everything bundled together and include a charging solution and home energy tarriff. Fro example, I was getting through a set of good tyres every year (front at least). Promote the employee benefit internally using our simple marketing materials. 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. 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). Feb 9, 2023. Salary sacrifice lets you make contributions to your pension and helps to save on National Insurance at the same time. Inclusive of this is insurance, servicing and maintenance and 'generous' early termination terms for the business should the employee leave. Octopus may introduce If you don't have all the details then allow about 5 minutes to work through the stages of the calculator. loveto halve the cost of your new electric car? If you click on them we may earn a small commission. Spoke to the company to get the ball rolling and the actual paperwork has come through to me with a monthly cost of 454 so now 116 dearer per month. or less. 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. 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. Perhaps a concrete example would make this clearer. 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.. 2. Before 2021, EVs were exempt from paying any BiK tax. But yes, its a bit difficult to look how the pricing is given the car is pretty rare (I think only 20 examples on Autotrader) but I paid 30k and the loan repayment per month is actually a little lower than what I earlier said. If they are self-insuring for specific claims, could that be a risk if they are hit with too many claims? 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 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. LEASE SUBSCRIPTION. That means we can set you up with the scheme from start to finish. Salary sacrifice: Monthly cost of insurance for Corsa-e SE Premium = 0. Octopus Electric Vehicles continues to offer business contract hire leasing packages as a broker. 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. Regular leases including fuel, insurance and maintenance for the identical car hit with too many?... 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