Were about to show you how you can get your hands on an electric car that will cost you less each month than a petrol car. You may also find the following Finance calculators useful. Salary sacrifice: Corsa-e SE Premium initial payment = 0. Youll need to replace all four tyres every 2 years on average. In addition to that, well provide employers and employees with all the information they need to make a decision, including a webinar, a driver handbook and an online community. Ready to find out whats so special about our EV salary sacrifice scheme? Please check the important information below for the current assumptions. 'Salary sacrifice is essentially a zero-cost, zero-effort tool for businesses to fight climate change and save the planet. Tusker monthly lease prices may be higher because they are a leasing company and offer lifestyle protection. 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. Our dedicated team are on hand to support whenever you need it. 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. The regular leases including fuel, insurance and maintenance for the identical car? Are electric cars always more expensive than their petrol or diesel equivalent? They are a leasing company and own some of the cars. 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. So far, 141 companies have signed up to salary sacrifice with Octopus, making it available to 22,298 employees. We do not allow any commercial relationship to affect our editorial independence. 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. Not a broker or leasing company: they are an authorised representative of a third party broker, Maintenance, servicing, MOT, breakdown cover and tyre replacements are optional rather than automatically included.. Whos Tusker good for? 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 Companies of any size that want to offer employees an affordable car and care about a good car ordering and employee experience. 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. or less. An employer can set up a salary sacrifice scheme and must mention the scheme in your contract or terms and conditions of employment. Are investors underestimating the impact of rate rises? Thats where its important to have early termination protection in place. Use our EV salary sacrifice calculator below to find out how much you could save each month. Car leasing is the same as a long term rental. Making Tax Calculations Simple. 50,271 to 100,000. Since they do not own the relationship with the leasing company, they wont have full responsibility over their regulatory conduct, systems and processes. 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. 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. Who is loveelectric good for? BiK has historically been very low for electric cars to encourage the uptake of low emissions vehicles as the UK moves towards decarbonising transport. It is available to all businesses particularly those with fewer than 1,000 employees which may struggle to access similar schemes. 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. 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. The lot. Salary sacrifice is a way of getting access to a brand new car through your gross salary and saving up to 40%. The firm said it is introducing the programme in response to a surge in interest in electric vehicles from businesses. Please read the important notes before proceeding to use this tool: Weve used Nimble Fins averages and our own research based on like-for-like services to crunch the numbers for this comparison. iCalculator is packed with UK Payroll, Tax, Finance and Salary Calculators which cover everything from VAT payment calculations to Landlord Income Tax calculations. Project Mondo G is a Mercedes G-Wagen in a puffer jacket, New Honda's Civic: family car with rebellious bad boy in its line-up, Advert for the 1998 first generation of the Audi TT, Ford scrapping 1,300 jobs in UK amid European overhaul. 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.. Jump To Car Salary Sacrifice Calculator
They do vary! Personal lease: Monthly cost of tyres for Corsa 1.2 SE Edition = 10.83Through our salary sacrifice scheme, well cover punctures and sidewall damage. 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. 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Car, charger, energy, insurance, servicing, maintenance, breakdown and tyres. AVForums.com is owned and operated by M2N Limited, Octopus Electric Vehicles Limited is authorised and regulated by the Financial Conduct You get taxed a small amount for the benefit of having the car, whilst making other savings on Income Tax and National Insurance. Here are some reasons why:, The main thing to keep in mind when comparing electric car salary sacrifice schemes is that youre often comparing apples to oranges., Many schemes will include different services and have different eligibility criteria and policies, which can make it harder to compare them directly., What you really need to look for is quality of service and product and weigh that up with the monthly service cost. For context: -Mid 30s, father of 2 -Salary roughly 95k Love Electric Financial Services Limited is a credit broker and not a lender. 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. 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. 'If just 10 per cent of UK's employees switched to electric we could decimate CO2 emissions of cars, while collectively saving almost 4billion per year. 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. 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. Octopus said many drivers are saving 30 to 40 per cent and some up to 60 per cent. All payments are taken from your salary automatically, so you have no extra bills to worry about. Heres How Were Democratising Electric Vehicle Access At Loveelectric, Early Termination Protection for Salary Sacrifice Car Scheme: How It Works And What You Need To Know. When we take into account the costs of fuel, insurance, tyres, MOT, servicing and repairs on top of the basic lease price for a personal lease, we can see that getting hold of an electric car equivalent through salary sacrifice works out cheaper. Authority, firm reference number 809736, company number 10754317. We offer everything for you to hit the road in a brand new EV. 1. 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. 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. Any driver who uses a company car for personal use pays BiK tax out of their monthly wage. 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. 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. Any prices quoted are subject to changes in law, regulation, tax or duty beyond our reasonable control. Electric Car Scheme was started in 2021 with business contract hire leases, and launched a salary sacrifice scheme in January 2022.. You are using an out of date browser. At present, the most popular car ordered is the Tesla Model 3, which was also the fourth best-selling new passenger vehicle in March. 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. 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. The more realistic comparison would be between personally leasing a petrol or diesel car versus taking an EV via a salary sacrifice scheme. If 3.
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