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Discussion Starter #1
So ive been building a spreadsheet to persude a push for our company to move to EV leasing.

And it seems at certain milages, current MPGs and/or incomes, a company lease EV becomes effectively FREE.

basicly
BIK eats up ~20/40% off the lease
then you only need to find 70/50% in fule saving, as about 10% is gained from spending you fuel/MOT/Tax/ saving pretax.


So im now reworking my sheet to actully see

What EV can I get for free.

Sheet here:-

For obvious reasons I wont let anyone edit it, download it first.
(for the unabvious it will leave trace info on income)
 
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A Zoe lease is already a 'free' car versus one that does 30mpg or less (which is basically most cars, in real life).

You don't need a company lease, or a magic spreadsheet to manipulate the maths for that. Just a calculator and some basic arithmetic skills.
 

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A Zoe lease is already a 'free' car versus one that does 30mpg or less (which is basically most cars, in real life).
I think it's something of a stretch to say most cars do less than 30mpg, anyone with a diesel, a hybrid or a modest sized petrol engine is likely tol be getting better than that.
 

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And the question is whether it is being applied to the correct vehicles - it is a very expensive way of incentivising the move towards a low carbon economy.
 

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Discussion Starter #6 (Edited)
The BIK thing is a massive tax cut for people lucky enough to be able to use it.
And that would seem to be a lot off people.

I've done some maths and entry point seems to be 18k(was a bit lower but the minimum income raise means people are taxed at 20% yet can't get the bik thing!)
Theres a double bonus off company car leases are vat free.

A Zoe lease is already a 'free' car versus one that does 30mpg or less (which is basically most cars, in real life).

You don't need a company lease, or a magic spreadsheet to manipulate the maths for that. Just a calculator and some basic arithmetic skills.
These new bik changes allow people driving 40 - 50 mpg cars to get free leases...
 

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And that would seem to be a lot off people.

I've done some maths and entry point seems to be 18k(was a bit lower but the minimum income raise means people are taxed at 20% yet can't get the bik thing!)
Theres a double bonus off company car leases are vat free.



These new bik changes allow people driving 40 - 50 mpg cars to get free leases...
Only if your company offers it, right? It's not something you can decide for yourself.
 

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Discussion Starter #8
Only if your company offers it, right? It's not something you can decide for yourself.
Why would you company not offer it?
1)Admin, there are multiple companies that run the schemes for the comapany. We are talking about saving up to 56%, so even taking a small share off that is enough to cover admin. Not a reason
2)Cost. Lease companies now buyback the cars to spread the risk around thier fleet. They can take the cost out off the employees payments so can provide this service at zero cost. Not a reason
3)Employees dont pay enough tax. Consider all emplyees that earn enough will pay at least 19% on this money compared to the new BIK numbers this is no longer a reason.
4)Employees dont earn enough money. This is a valid reason However, they can offer it to qualifying staff, and as the floor is a round the 17 to 20K mark, a fair few employees will qualify. Not a reason

REASON TO OFFER

1)cutting wage bills. The company does not pay NI on your lease, this is a 13.8% saving, at least £300 per employee.
2)Competitiveness, the allows the company to offer an effective pay raise of about 7% or more.
3)Green hippy tree huggyness. Somthing for the marketing to shout about with thier crayons.
4)Fuel savings, This is huge, the payment is 4p on company EVs so expect 70% savings on fuel cards and 90% savings on claimed milage.
 
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I am interviewing for new jobs and 7% would certainly help offset some of the losses to brexit. But I don't know if I'd be able to use it because will they open the scheme to new employees who haven't done their 6 months probation?
 

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Discussion Starter #10
I am interviewing for new jobs and 7% would certainly help offset some of the losses to brexit. But I don't know if I'd be able to use it because will they open the scheme to new employees who haven't done their 6 months probation?
7% is my rough MINIMUM, if you have an income above 155k and do huge miles in your old 911 moving to a taycan, then you could be looking an effective 30% payrise.

I dobht anyone would offer this on probation though, even if the risk of holding the baby is being mitigated by a third party.
 

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I dobht anyone would offer this on probation though, even if the risk of holding the baby is being mitigated by a third party.
Yeah, so assuming I manage to find a job and don't cancel the Honda I won't get able to use this 0% BIK with it. So for me it's much better if they keep the 3.5k grant or even increase it (ha ha not likely).

Maybe after I've been there for 6 months I could sell the car to myself or some nonsense to get it on 0% BIK. Does it have to be a brand new car? I think my friend said he was getting the 0% on the used eGolf that his company bought him.
 

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It does not have to be new to get 0% BIK, I am going to have a 2011 Tesla Roadster as a company car at 0% BIK. The only difference is for the capital write down for the company, this is 100% in the first year for a new electric car and the usual 18% per year (I think) for a used one.
 

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Discussion Starter #14
Spreadsheet done.
Spreadsheet now shows, yes, no(you don't earn enough) or free.

Some notes.
Its all an estimate, please be careful.
Lowest income is calculations do not take into account other salery sacrifice. Most people have a pension now so will add that.
Lowest income is 17616.. But that's based on same very low id3 lease prices.
Range is official and kWh may not be usable so fuel savings are almost definitely an over estimate.
Lease prices are from one supplier so YMMV
I've back calculates prices for 20k and above if sombody like @Badger in Black would comment I'd be thankful, I've taken the worse per mile prices so hopefully it not too far out.
The prices are currently 1+60 leases.
As the objective off this spreadsheet is to find free leases I'm going to change this to a 9+60.
Some low earners could decimate thier statatory pay to more than half. If you are looking at having a child in the next 4 year the gains may not be worth it.

Even if this isn't helpful to YOU, the more lease cars on the road the more second hand EVs in 2 to 4 years time. The more people taking EVS at your company the bigger thier wage bill savings(and thus more money for raises) So spread it around.
 

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Discussion Starter #15
OK created a 12+60 column(to calculate what cars a leasible and 1+60 to calculate pcm prices(realworld)
Also added the lotus Evija
Please post if you can make the leasible section go YES and FREE...although I dont think thats possible.
 

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I think it's something of a stretch to say most cars do less than 30mpg, anyone with a diesel, a hybrid or a modest sized petrol engine is likely tol be getting better than that.
Indeed, my diesel gets high 50s in winter, mid 60s in summer. Highest average for a single trip was 78 mpg. :D

As far as I can tell, the best case scenario is saving 51% on gross lease price (40% IC, 2% NI, 9% SL). In that case, you have to work out how much you'd save on insurance, servicing, fuel, etc. per month and then double it to get the maximum gross lease price that'd get you a "free EV".

I'm sadly not in the higher rate tax bracket so I only save 41% (20% IC, 12% NI, 9% SL) but my savings would be ~£141/mo based on my estimates and mileage, meaning a car with a gross lease cost of £239/mo would cost me nothing overall. Given the very cheapest EV I can get via salary sacrifice is a Smart EQ ForFour at £321/mo, I very much doubt anyone can really get an EV for free. Maybe someone in the higher tax bracket but then why would you want to drive a Smart EQ ForFour when earning over £50k a year? :p

I don't think doing stupid mileage will make the numbers add up either because although you'd save more in fuel costs, you'd have to pay more for the lease.
 

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Discussion Starter #17
the lease goes up at about 2-5p a mile over base.
if your saving 5 to 20p a mile in fuel then stupid milage WILL EVENTULLY get you a free car.
the realisation that the NET per mile lease cost increase is very small is what made me build this spreadsheet in the first place.



even the evija is only 17p per mile NET(plus a massive £16K base though!!!! [MindBlownHowRichPeopleAreEmoji) you would need to swap from a car doing at least 18p(if you charge over night) a mile but cars off this type could hit this number with ease.


Have you had a go at downloading my spreadsheet
I'll continue to add cars as people mention them.

rule off thumb seems to be is above 20k+ miles for Lower bracket 15K miles for higher bracket to start seeing "free" cars.(current MPG not withstanding)
 

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Wher are those numbers from? With the lease I am getting (Kia e-Niro) it cost ~12p/mile to move up to a higher mileage tier. I guess it could be a lot less for cheaper EVs.

I can't access your spreadsheet from work, I might have a play when I get home.
 

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Discussion Starter #19
your talking gross per mile lease cost . (and that what really counts in real life)

looks like due to your high mpg(55)you need to be north off 30K miles to get a "free" car.

If you can charge overnight that goes down to 25k
 

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