Shortest delivery time. Volvo assume 400 insurance, 150 tax, 300 tyres, 300 servicing. Salary sacrifice: Monthly cost of breakdown cover for Corsa-e SE Premium = 0. 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 Inclusive of this is insurance, servicing and maintenance and 'generous' early termination terms for the business should the employee leave. Same here, and zero credit check etc. If 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. included with our EV salary sacrifice scheme? Make. Body type. Our registered address is UK House, 5th Floor, 164-182 Oxford Street, London, W1D 1NN. Octopus Electric Vehicles Limited is authorised and regulated by the Financial Conduct This is Money takes a look at Octopus Electric Vehicles' new programme and explains exactly how salary sacrifice schemes work. Change the numbers to suit you. The rate went up to 1% in April 2021, and changed again in April 2022 to 2%. 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! Since they dont have a direct relationship with leasing companies, they cant charge a commission. According to Nimble Fins, the average cost of running a petrol or diesel car in 2022 is 3,000 a year. We do not write articles to promote products. But it is now its own dedicated leasing company, meaning it will own the vehicles themselves. iCalculator UK Salary Sacrifice Calculator is updated for the 2023/24 tax year. The sacrifice the employee makes out of gross salary is 726 which, after tax, is equivalent to paying 435. Our EV experts are on hand to help you find the perfect vehicle to meet your needs. Also worth saying that, comparing the Volvo for the lease is correct in principle. They are a lot smaller than traditional leasing companies, owning 10,000 vehicles compared to large ones that might have over 350,000 cars., By being smaller, itll mean they cant negotiate discounts with manufacturers and since they arent owned by a retail bank, their cost of capital will be a lot higher. Sort by. Personal lease: Monthly cost of breakdown cover for Corsa 1.2 SE Edition = 14.08With our salary sacrifice package, breakdown is included at no extra cost, so you dont need to worry about getting your own roadside assistance. You can calculate results based on either a fixed cash value or a certain proportion of your salary. Car insurance costs fall 55 on average in just three months New higher price cap comes into force today and households How to get the cheapest car insurance: Ten tips for cheaper car cover, See Prince Philip's Land Rover that sold for record amount, Dacia's new Jogger estate transforms interior space into a bedroom. 'Salary sacrifice is essentially a zero-cost, zero-effort tool for businesses to fight climate change and save the planet. 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. 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. 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? Most have early termination protection (but each one will include different terms, so make sure to ask). 4,000 free miles of home charging with Intelligent Octopus. They offer cars via contract hire and salary sacrifice. 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. Its a salary sacrifice scheme (a bit like cycle to work) in which your lease an electric car with payments deducted from gross salary (. Full electric cars are exempt from Vehicle Excise Dutybut drivers still have to pay Benefit-in-Kind tax if you are going to run one as a company car. Authority, firm reference number 809736, company number 10754317. * Please note that these can be expressed as a cash amount or percentage of your salary, Annual Employer Contribution (%) Fixed AmountPercentage of Salary, Annual Employee Contribution (%) Octopus said many drivers are saving 30 to 40 per cent and some up to 60 per cent. Powered by Xenforo, Hosted by Nimbus Hosting, Original design Critical Media Ltd. Oh, and it uses tax rates for England and The cost of the MOT isn't a problem for most drivers, but the cost of repairs that the MOT uncovers can be hefty. This makes it easy for you to charge at night when power is cheapest. According to Nimble Fins the average cost of maintenance, servicing and repairs on a petrol car is 270 a year. Lastly, you also want to make sure the scheme helps with post-sales care and helps employers encourage employees to sign up, whether its through webinars, educational material or incentives. Even with the increase in BiK at 2% for electric cars; the tax is much lower than for hybrids, petrol and diesel cars. 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.. Not much post-care or educational content for employees. You don't have to put in any work for this to happen. However, that means youll want to know how much that commission is. Companies of any size that want to offer employees an affordable car and care about a good car ordering and employee experience. For the Tesla. Early termination only covers 10% of claims or ten cars whichever is greatest. A collection of really good online calculators. The BiK rates are calculated based on the cars CO2 emissions. For example, Tusker and Octopus EV are leasing companies and set the rentals themselves. 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. 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). BiK has historically been very low for electric cars to encourage the uptake of low emissions vehicles as the UK moves towards decarbonising transport. Offer corporate leasing, corporate pool cars and car sharing. You just need your employer to sign up first.Fill in your company details so we can get in touch - it wont cost them a penny but it might earn you a few brownie points. Wales. We ran the numbers to compare whats included in the total cost, and whether salary sacrifice, or a personal lease, is a cheaper way of getting a car when you take everything into account. Tusker primarily works with companies with 1,000+ employees. Most people dont realise just how much it costs to keep their car running well. Go To Calculator. Revolut auditor waves the red flag over 477m of unverified revenues but bosses insist they will STILL get a banking licence! 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 tax year figures in the Salary Sacrifice calculator are 2022/23 tax rates. KIA, Polestar, Mercedes, VW and Porsche also all have a share. What's included with our EV salary sacrifice scheme? Feb 9, 2023. We do not allow any commercial relationship to affect our editorial independence. The regular leases including fuel, insurance and maintenance for the identical car? Launch 1. 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. The company saves 53.19 on National Insurance meaning it is cost neutral for them. We understand that loveelectric might not be a good fit for everyone and that other salary sacrifice companies might be a better fit at times. Anyway, if anyone interested in asking their employer to sign up to the scheme and has a car in mind I don't mind having a quick look for you to see a rough guide price. Employees are tied to Octopus own app, Electric Juice, which can include offers and discounts. A further 20 more models will be available later in 2021. Salary sacrifice is an employee benefits scheme that allows you to pay for a car out of your gross monthly pay. Editor, Marcus Herbert, https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim23035. Each calculator provides the same analysis of pay but is simplified to allow you to enter your salary based on how you are used to being paid (hourly, daily etc). Due to the increasing demand for electric vehicles, there are more electric vehicle salary sacrifice schemes that are set up every year. Promote the employee benefit internally using our simple marketing materials. Some employers choose not to include insurance, but its up to your company. Some links in this article may be affiliate links. Most importantly, you want to ensure the company knows what theyre talking about and can offer guidance. "I don't see any cause for further discussion or comment. This works when an employer and employee come to an agreement over salary. 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. If they've not signed up yet, send them our way. Employers and employees who want everything bundled together and include a charging solution and home energy tarriff. Thats where its important to have early termination protection in place. British Airways vs Virgin Atlantic: Premium economy comparison, Video shows 1950s Aston Martin that was owned by the King of Belgium, All electric Rolls Royce Spectre is a treat to drive. With our salary sacrifice scheme, fully comprehensive insurance is normally included in your monthly payment. Get started with loveelectric for free. 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. 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. 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. for use in every day domestic and commercial use! Salary sacrifice: Monthly cost of fuel for Corsa-e SE Premium = 10.50. There you go, the saving is in the 450 month you're paying as HP. Customers ask us why the total cost of an electric car through salary sacrifice can seem higher than taking out a personal lease. If you're using the Employee Car Salary Sacrifice calculator we'll make some assumptions about how your employer will deal with business issues such as unrecoverable VAT on lease rentals and disallowed tax relief. 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