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Anyone used one before?
My employer has a scheme that they're just re-opening for us to opt into (limited time window though I think), and the nudge is there to use it for EV/low emission vehicles. I quite like the idea in principle; pre tax and NI deduction to cover a leased car including insurance (with names drivers), servicing and even fresh tyres, subject to BIK tax of course so everything happens before PAYE payroll and I'm not bothered with insurance renewals or other nonsense (at least that's how it's sold).
It opens the option of getting into an EV for local use/commuting and fixing the costs for a couple of years...
Except I can see nothing yet from the scheme supplier via their website or our own internal bumph, So have no ideas or indications on vehicles that might be available, or any useful tools to understand the cost. Hence I'm a bit reticent to go signing up at present.
I know there's a general new car shortage but should I be suspicious that there's no actually useful information allowing me to cost the scheme being shared yet?
My place is doing similar from Jan. Just be aware of potential impacts on your pension - salary sacrifices can reduce the overall salary calculation taken into account for contributions (if Defined Contribution)/ career average earnings (if Defined Benefit). Get some advice!
Good point about pension contributions, I shall enquire about that one.
But I just don't know anyone else who's used a salary sacrifice scheme to get their hands on a car before, it's a bit scarier than a C2W scheme and they've really not put much info out, I've messaged HR but I'm not expecting them to have a detailed understanding TBH...
My company started a scheme last year , administered/run by Tusker. I just ordered a Hyundai IONIQ 5 through the scheme, which will arrive March next year.
The basic premise is paying before tax for an EV, which brings them into a sensible price bracket.
Tusker (and Im sure others) know that you will get big savings, plus can't shop around as you are tied to their scheme. There is definitely some price inflation going on, but you still get a car cheaper than you could elsewhere. The package is all inclusive (Servicing, insurance, tyres, tax, free charger) and it seems they inflate the value of this, and drop the residual value, to generate a higher Gross Monthly Charge.
If you can bite your tongue, accept they are taking the piss, but you still get a vehicle cheaper than you would otherwise, its a great deal.
My I5 would cost £50k to buy, but will cost me £500/mo out of my wage packet, all inclusive, for 15000miles a year.
If you want me to look at a few specs/prices for you give me a shout.
Ill be willing to bet they haven't finalised all the details with the provider yet. Once the scheme is launched, its basically just like any other leasing scheme, just the money is salary sacrificed by payroll.
My scheme has a redundancy clause, so yo aren't tied in for the whole contract if you lose your job, which probably also inflates prices a bit.
If BIK stays zero or really low it's great. If it goes up during the lifetime of the lease, the savings will be affected. Probably low risk, but worth considering with longer leases.
Cheers all, I was thinking I would dip my toe with something basic/not too pricey, searching about the Skoda CITIGOe caught my eye as it's basically a VW e-up! without the badge for ~£2.5k less, base spec of course. but then other smaller cars are in the frame the e208, Corsa-e all basically ICE platforms converted to EV, that's what you get at the "cheap" end of the market still it seems...
Obviously availability will be a factor but I'd certainly want to stick with EVs under under £30k and mileage at about the 12-15k mark, it would be the family runabout/Daddy's commuter so big range and boot not really needed. I've just got no feel for what that equates to on a monthly cost basis yet which is frustrating.
If BIK stays zero or really low it’s great. If it goes up during the lifetime of the lease, the savings will be affected. Probably low risk, but worth considering with longer leases.
looks like it's going up to 2% for EVs from 2022/23 and beyond, it was only really the early adopters that got an EV as a company car that caught the 0% BIK window I think. It would be a 2 or 3 year lease I think those are the options so BIK looks like it will stay consistent for that period at least.
I’ve got an i3s on our company scheme through Zenith, it costs £300/month for 15k/yr and on the second day I took it to work they paid for a new £200 tyre 🙂
I’m about 16 months through a 2 year lease and for me it’s been excellent.
We sold an £11k Polo and were spending about £200/month on fuel (plus insurance, tax, MOT & servicing). We now spend about £25/month on electric and everything else is included. It’s truly hassle free motoring / commuting.
(We only really charge at home as have another vehicle for longer journeys. Something to consider if it’s not a second car).
Cheers Phil, our scheme in going to be with zenith, that sort of price On an i3 sounds encouraging.
Hmm I am about to have this opportunity sort of considering it with the numbers.
Dunno when it's getting rolled out but will be properly looking into it.
Only issue is I'd have to charge it across the pavement.
Our place has ran a scheme through Tusker for 6 years. When it was launched, loads of new cars on the car park... something like 6% went for another deal after the first period.
Not one person from the finance dept (maybe 150 people) went for it. Pension implications and a very harsh handback so I heard, and deals not as good as other options.
Maybe they're not all like Tusker though.
I'm the same as Phil, have an i3s through Zenith. From memory we got them at a similar time, just as covid hit? Mine is a bit cheaper as the mileage is lower and I have it over 3 years. It's about £270pm including insurance, tax, servicing and tyres. With fuel prices atm it's a no brainer as I'd have to borrow money to buy my own so costs would be similar for a decent second hand car.
Not sure if it's still the case but bik tax was zero in the first year then low for the rest. Our scheme takes account of pension so doesn't affect it. The only shock I got was as my tax code changed mid year I got hit for a tax bill of a couple of hundred quid the following April. Not sure if that's standard or a horlicks by my employer?
The car is ace too, fast, quiet and full of tech.
I had a look at the Tusker scheme the other day and they seem to be pocketing most of the tax relief. They set the net price so that it’s about the same as Carnow but including insurance etc but there’s no way what they offer is worth the difference between the gross and net price. I was looking at etron and the gross price was about 1050 a month which is about 400 more than Carnow. However it is still the cheapest way to get one. Just winds me up as we have no choice but to use them.
Yup I’ve used on for around 15 years, you’ll get a full cost including how much it effects your pension.
Easy way to get a car that costs only the payment plus fuel to run.
I’ve used 2 NHS schemes, NHS Fleet Solutions and Tusker. Tusker are way more expensive than Fleet Solutions on most vehicles. I still have access to a Fleet Solutions website so can do like for like comparison. Tusker is roughly £50-£100 pm more expensive
Having said that just recently ordered a i3 £250pm 12k miles, 24 months with some nice extras
I wouldn’t be getting a long lease on any EV at this point
Previous one was a BMW 330e which I bought off the the lease company 2 yrs in to a 3yr lease. Bought it off them for £17k and just recently sold for £16.5k 3 yrs later!
Oh by the way be prepared to wait, our i3 is taking 6 months, other EV’s are similar if not longer
Ive just looked on my Tusker site:
15,000 miles/yr, 4 years, 40% taxpayer, All inclusive deal:
VW up £213/mo
Leaf £237/mo
I3 £300/mo
ID3 £300/mo
All for base models.
"I know there’s a general new car shortage but should I be suspicious that there’s no actually useful information allowing me to cost the scheme being shared yet?"
Never mind costing the scheme; which car does your heart sing for?
Isn't there something specifically on NHS deals where the reduced pension benefits are allowed for in the EV scheme, making comparisons elsewhere invalid?
Definitely look at the numbers carefully. My place offered a scheme through octopus and it was great if you wanted a Tesla, loads of other cars were more expensive despite the alleged tax saving. I think octopus must have had some terrible terms with the manufacturers!
Cheers dantsw13 that's useful comparison info.
I wouldn’t be getting a long lease on any EV at this point
This is kind of what I'm thinking, IIRC the blurb said we could opt for 24 or 36 month leases so it shouldn't be a massive period, and like I said I'm just dipping a toe. But looking at used prices on circa 2 year old examples of the sort of smaller EVs I'm weighing up the lease companies must be laughing right now, it's almost as if there's effectively zero depreciation due to bonkers demand.
Never mind costing the scheme; which car does your heart sing for?
Unfortunately this is more if a practical rather than man-child kind of thing, if it was just me then of course I'd be throwing most of my salary at a Model S or similar, kids and mortgages have prior claim to my resources though, so my heart can just hum a catchy tune for now.
I think I'll need to send some more emails tomorrow, the window for making choices is limited and they're not helping the decision along...
I'm interested in this. My company are signing up to Tusker, wish I hadn't read about them inflating prices!
@dantsw13
Do you mind looking at the costs of a Niro 3 or Enyaq 80 for 36 months / 25k miles pretty please?
Unfortunately I have a 100 mile round trip most days, but can charge at work for free so can offset the cost a little there.
Thanks
The E-Niro 3 comes in at £491 for 36/25K or £453 for 48/25k. Your high mileage is definitely bumping up prices.
The Enyaq 80 will be more, and is very hard to quote for, as everything is a "pack" on top of basic. This tends to be expensive with PCP, as every extra is fully charged for within the finance period, and the residual is just based on the stock car.
*Those prices are obvs net of tax - so what you will see as a reduction on your take-home, if you are a Higher Rate taxpayer.
Free charging at work means you would never even need to pay for electricity, with a 100 mile commute.
That's fantastic info, thank you. Around the price I was looking at.
Yes, the Skodas do have a lot of optional extras, interesting to know how they are costed in. Yup, unfortunately my annual mileage bis high, but the reliability will be worth it.
My manager has an EV so we managed to install a Pod Point at the back of the warehouse, with a little hatch to access the lead. Shhh!
Going from a 57 plate Mondeo with 240k on the clock, I should save about £240 a month in diesel, tax and insurance, not mentioning tyres and servicing, MOT etc. So it's not going to cost tooooo much.
What happened to us riding our bikes?
I'm back commuting to work when in the office by push bike (despite broken spine last time I did it).
Car sits on drive !
No wonder uplifts are the thing - LOL !!!!
What happened to us riding our bikes?
Other threads are available 😉
Hah ha,, lazy buggers...
Anybody fancy riding 70 miles to Heathrow for 4AM then back home in the dark later?
When I only get 12 hrs off between flights, spending 9 of them cycling to/from work doesn’t really cut it……
I'd love to live closer to work!
When the Mondeo needed an engine swap, I ended up riding a 60 mile round trip to work, each and every day for 11 week (didn't realise the mechanic would that that long). In Feb / Mar.
So now I enjoy driving!
Piesoup an EV doesn’t really appear ideal for the type of journey you want to do. Do lots of research on the type of real world mileage your chosen EV would get prob at least 1/3 off the claimed.
Then your charger at work, is it a fast charger or a 3kw charger? You may not be there long enough to get charge in it!
Leases of any type are good for low mileage and generally very expensive for high mileage.
Also I assume the figures quoted to you were the net salary deductions, not your gross salary reduction. The gross salary reduction can effect your ability to get credit
He says they have a pod point at work, so an 8 hr day will be plenty for both him & manager to top up.
E-Niro range is claimed 260 miles, and actually holds up quite well. A 100mi round trip with a 7kW work charger is Nirvana!!
He is saving £3276/year in petrol by my calculations. So with petrol savings, free maintenance/insurance/tax/tyres, that's a free car!!!!!
I've looked at PHEVs, and quickly discounted them. Buying another ICE isn't really going to save me money as I'm currently getting a real 59mpg. Any newer second hand car in my price range can't quite achieve that. So I'll still be paying for the car AND petrol / diesel. Plus insurance, tax, MOT servicing etc.
With the salary sacrificed EV, it's as dantsw13 put it, a huge saving on fuel and cost of ownership.
I'm only looking at cars with over 200mile range. Then I am guaranteed at least one and a half round trips. Small top up at home if necessary, but main charging at work.
Found out last night it's actually the 22kW charger! In 7kW guise now, until we run the 3ph supply to it. Handy working in the Engineering department. Once more people adopt EVs, we will be installing more Podpoints in the carpark too.
So looking at that, I hope a salary sacrificed EV is looking more favourable
I think you are spot on. E-Niro is the best bang-for-buck range wise I think. The only reason I went Ioniq 5 over it is for charging speed, but with your work charger that’s a non issue.
I only wish Heathrow airport backed up it’s environmental claims with action, and provided some form of staff charging to encourage EV uptake.
We have a scheme like this, but annoyingly the monthly costs seem to be set massively high, so there is little benefit over just sorting the lease yourself even when factoring in the tax. If the monthly costs were similar to a private lease then it'd be a no brainer, as you'd effectively be getting 40% off.
With the salary sacrificed EV, it’s as dantsw13 put it, a huge saving on fuel and cost of ownership.
I’m only looking at cars with over 200mile range. Then I am guaranteed at least one and a half round trips. Small top up at home if necessary, but main charging at work.
I'm in a different boat, 200 miles is probably towards the upper end of my weekly mileage, an EV makes excellent sense, so I'm looking for smaller cars with ranges upwards of 130ish, knowing that winter and aging will knock that down, I'd still like to only be charging every 3/4 days ideally, we have charging points available at work and the 7Kw Pod point home charger looks sensibly priced (I'm not planning to sort 3 phase at home).
The tail end versions of the VAG mini-hatch type platform (Citigo-e/Mii/e-UP!) look good with a claimed 160 mile range and a base model price under ~£20k...
Corsa-E/208e look interesting too but it's a bit more spend and a slightly bigger car and I just want basic mobility TBH.
Still nothing more back from the Scheme contacts and I emailed them almost a week ago so I'm a bit on the fence again now...
@cookeaa take a look at the honda. Its a bit more expensive but an absolutely lovely thing.
It's pretty but has less range for more money, probably due to having a gazillion screens in the dash...
The EV Charger grant scheme finishes in march I believe. Worth getting it sorted by then.
Zoe has the highest range of the superminis.
We have a scheme like this, but annoyingly the monthly costs seem to be set massively high
Yeah it surprised me just how much it still was for 'premium' choices (40% tax bracket) for 36m/30k the Model Y Performance is £964/m on our scheme, was hoping it would be in the £700's 🙁
@dantsw13
Thanks for the heads up.
Hoping the sale of the Mondeo will pay for the charger. Or at least the cable installation!
My place is doing similar from Jan. Just be aware of potential impacts on your pension – salary sacrifices can reduce the overall salary calculation taken into account for contributions (if Defined Contribution)/ career average earnings (if Defined Benefit). Get some advice!
It shouldn't typically as your pension contributions are calculated from your gross salary before payroll is even calculated and salary sacrifice elements are taken out. An exert from our scheme -
Plc will use your ‘gross salary’ (your salary before
salary sacrifice reductions) to calculate any benefits, pay reviews or statutory
payments which are determined by salary. These include:
▪ Bonus
▪ Commission
▪ Pension
▪ Overtime
▪ Holiday pay
▪ Annual pay increments
Participation in the scheme should not negatively impact upon the
above pay elements
So regardless of a DC or DB scheme it shouldn't impact your contributions.
what @Larry_Lamb said about affecting pension contributions. Our 'flexible benefits' scheme lets me pick a whole bunch of, mostly gross, salary sacrifice items: pension, AVCs, extra holiday, PMI, ... The only ones that affect my % DC pension contributions are: what % of gross salary I want to pay in and AVCs. The % contribution is based on the gross annual salary figure with no deductions.
Many deductions will affect your taxable pay and all affect your net pay. Nice for the former, expected but disappointing for the latter.
Same here. Pension contributions not effected even though I have car, health care, and a host of other benefits coming out as salary sacrifice.
Aware this is a thread resurrection but I've a chance to get a car via Company Salary Sacrifice scheme and I'm a bit clueless on the indicative cost.
The cars are either EV or Petrol Hybrid - so it would be EV as I can only see negatives with hybrids as the mileage of battery and petrol both seem to be much smaller.
However, EV cars are apparently 2% BIK - what does that mean? Also, looking at the list of cars, there are 3 different BIK figures - which I'm assuming are the differing levels of tax rates, but what do those mean? Is that what the monthly cost would be or what comes off the monthly cost? Or is that the saving of 'something' for the whole year?
Fortunately I'm just having a nosey and there is no rush, but just asking here to try and get a better understanding before I call the HR people and get put on mute so they can have a real good laugh at my daft questions! (Happy to create a laugh here as I've already been judged, so no issues!)
BIK (Benefit in kind) is the tax you pay for the privilege of having a company car - which is what a salary sacrifice car is regarded as.
The 2% in the case of EVs is the amount of the list price (including options!) of the car that is taxed. That amount is then taxed at your income tax rate, eg 20/40/45%.
When quotes for cars are done, they usually lump the amount of tax onto the monthly payment quote, but in actuality it’ll be paid via an adjustment to your tax code. You tax code will be adjusted (negatively) by 2% of whatever the list price of the car is.
Whomever your company uses for cars will be able to provide full quotes for the cars. These will have a gross deduction and a net deduction. Simplistically, the net deduction is what your take home will reduce by if you take the car taking into account paying tax on the car and paying less tax on income because you’re sacrifice some for the car.
BIK is benefit in kind tax. Basically using one of these schemes saves you income tax and national insurance on the amount of your salary you sacrifice but that is then replaced by BIK. 2% is obviously lower than IT + NI would be so you make a saving.
Electric cars have lower rates of BIK as an incentive to get one. When I got my BMW i3s three years ago the rate was 0% which made it a very cheap car to lease, which was nice.
I'm currently looking as my car goes back soon. Using a Kia Niro as an example the amount your salary would be reduced is £627 a month. You then save £125 income tax and £75 national insurance on that but pay £12 benefit in kind tax meaning the amount you will actually be deducted per month is £439. The higher the tax rate you pay, the higher the saving with these figures being based on standard rate.
Ok, thanks for the info, that has all helped explain a bit more, thanks.
Just be aware this will also affect the amount of pension your employer pays in as your salary is 'reduced'.
The current lease prices aren't anything like as good as they were 12 months ago - over £400 per month (after tax) as indicated above for a Kia.
I've looked at my employer's scheme and decided just to stick with my old car and save £400 a month as I just don't drive it enough - just 3,000 miles last year.
Just be aware this will also affect the amount of pension your employer pays in as your salary is ‘reduced’.
This is employer dependent. For my company, salary sacrifice of any form makes no difference to your pension contributions - unless you’re sacrificing for additional contributions 🙂
Yeah, used to be the same for us although I need to check that's still the case.
What happens if you go into the salary sacrifice scheme then decide to move on (or made redundant). Seems to me that the deal is administered between payroll and the respective lease company, so if you move to a new employer, you kind of have a problem? Am I missing something (like reading page one of this thread?)
That problem becomes your ex-employer’s problem, not yours. But you do obviously lose the car. (Unless you could wangle a new deal with the leasing company directly, noting that it would not be salary sacrifice.)
We’ve had cars go back into a pool available for somebody else to take up (at reduced rate.) or the company takes the hit and buys out of the deal with the leasing company to terminate early. In reality the cost of this is probably built into the rate you pay per month, a kind of insurance for the lease company spread across all lease holders.
That problem becomes your ex-employer’s problem, not yours. But you do obviously lose the car. (Unless you could wangle a new deal with the leasing company directly, noting that it would not be salary sacrifice.)
I think that depends on the small print. C2W is normally on you to pay off the remainder, a traditional company car used to belong to the company, but in the modern schemes (where your employer is just carving out your salary and giving it to a lease company), I wouldn't be surprised if your responsible for paying off the remainder and keeping the car till the end
It’s not in my company. I was very clear to understand the T&Cs before signing my salary sacrifice lease… it’s a lot of money to be on the hook for if you don’t understand what’s going on!
unless you are signing the lease, then the liability/issue sits with you?? I heard from a friend that the scheme he was looking to rollout had this problem, so they ended up removing the idea from their ESG strategy until a better solution could be found.
From our Scheme with Tusker:-
Pensions in both schemes are accrued based on the amount of gross pensionable pay that employees earn. The amount of salary sacrifice taken for an electric vehicle will be subtracted from this gross pensionable pay and will therefore reduce the pension you accrue while the salary sacrifice contract is active.
As your pensionable pay is reduced you will also pay less in pension contributions. The rate at which you pay your pension contributions may also change, as the rate payable will be re-assessed against your annual pensionable pay LESS the sacrificed amount.
Check this out with your pension as that's potentially a fair chunk at Gross - e.g. £700 a month gross would be £70 or so less from me and £140 from my employer.
I’m also with Tusker and mine doesn’t work like that. As others have said, no affect on either mine or my employer’s pension contributions. No buy out of lease etc needed if employment is terminated (under all circumstances.) I think I’ve said previously, employers probably negotiate with Tusker a set of T&Cs that fit their policies/budget. Additionally, some of the T&Cs set by Tusker will in fact deride directly from your own HR/comps&bens policy. As always, the devil is in *your particular* detail.
Make sure you do check YOUR SCHEME as this is a quote for a Kia Niro
Kia Niro SUV 5Dr 0.0Electric 64.8kWh 201 2 Auto
Monthly amount:£666
Employer contribution:-£72
Monthly gross reduction :£595
Income Tax saving:-£205
National Insurance saving:-£12
Pension contribution saving:-£51
Benefit in Kind:+£12
Effect on take home pay:£340
As others have said, different employers will have different deals - Tusker here and no pension impact
Yep. Our is Arval, no pension impact. If you resign you have to pay a termination fee, which is three months lease in the first year, two in the second, and one in the third. If you’re made redundant the company pay the termination fee.
Basically, all companies are different in how they and their supplier run the scheme, even down to the rates and cars they offer. There’s no point looking at what other people pay for cars with other employers because you can’t access that scheme. You just need to decide if you’re happy with what’s being asked for the car you want with your scheme.
Monthly amount:£666
Employer contribution:-£72
Monthly gross reduction :£595
Income Tax saving:-£205
National Insurance saving:-£12
Pension contribution saving:-£51
Benefit in Kind:+£12
Effect on take home pay:£340
Apologies if I've misunderstood, but this seems like a really dangerous ( not really, but roll with it...) way of looking at it.
There is no "Pension Contribution Saving". You're paying less into your pension and thus will get less pension as a consequence. You're not actually saving £51. In fact it's the exact opposite, literally You're saving £50 less.
And indeed you could unilaterally decide to do that regardless of whether you have a company car or not.
Or have I misunderstood you?
That problem becomes your ex-employer’s problem, not yours.
Not where I work, it's your problem whether you leave/laid-off.
+4 years ago it worked out the same price for getting a new car through work (that I'd never own) as buying the same car used & 6 months old myself - I went with the 2nd option.
It's also why I've never used them for C2W, they take off the gross balance from your last payslip if you leave/laid-off.
This is the wording Tusker used on the quote - it's misleading.
Exactly it's not a saving. With that particular quote, the employee would be getting around £150 less going into their Scheme - £50 employee and about £100 employer.
This is in Higher Education.
It’s also why I’ve never used them for C2W, they take off the gross balance from your last payslip if you leave/laid-off.
That interesting, they must have put a clause in the sign up agreement. As above the lease is with your organisation, not the individual. I know of people who have just walked away from Salary Sacrifice cars.
Yes you do loose pension. Even employer contribution remains paying 10% pension contribution, its 10% of a lower salary.
Other pitfalls include trying to get no claims recognised after you end a lease arrangement. And even after you hand a car back 9 out of 10 times you will still continue to pay BIK charges the following financial year which can be a big hit if you are then financing a new vehicle else where.
I've done it in the past and got some very nice cars very cheaply through the schemes, but I dont think they are as appealing as they used to be.
Can we just be clear:
Yes you do loose pension. Even employer contribution remains paying 10% pension contribution, its 10% of a lower salary
You MAY lose pension, dependant on YOUR particular scheme agreement. Some will, some won’t dependant on your scheme/company’s T&Cs, even if the car lease company is the same as others.
You MAY lose pension, dependant on YOUR particular scheme agreement. Some will, some won’t dependant on your scheme/company’s T&Cs, even if the car lease company is the same as others.
How can that be? Are you saying the employer makes up the pension shortfall ? ie
IF you earn £40k @ 10%= £4,000 pension contribution
Salary Sacrifice is £5k making salary £35k @ 10% = £3,500 pension contribution
From the Horses Mouth (Gov.uk) - the answer is it varies, hence checking your Scheme.
The Employer can chose either the reduced salary or the notional original salary !
Effect of salary sacrifice on payments and benefits
Earnings related payments
Employers usually decide how earnings related payments such as occupational pension contributions, overtime rates and pay rises are calculated.
Such payments can be based on the notional salary or the new reduced cash salary, but this must be made clear to the employee.
So where your pension is affected, that £360 a month for 'the car' is really costing me £510 as there is £150 of pension contributions'lost'
Something to be very wary of if that is how your scheme is calculated. All compounded with leasing costs being so much higher.
So if its done on notional , then that means the company is picking up the pension shortfall. Good on them if they decide to do that !
How can that be? Are you saying the employer makes up the pension shortfall ? ie
Absolutely this is how it works at my company (large telco). Salary sacrifice has no impact on pensionable pay - they make it very clear that it's calculated on your gross salary. To be honest I'm surprised anywhere does it differently (same at my last employer).
All that being said, I can't see the point of salary sacrifice car schemes. The lease cost is inflated so that once the tax savings are taken into account then the actual cost is about a fiver cheaper per month than a normal commercial lease. Seems scammy.
I’m in British airWays - we have a “pensionable pay scale” which is linked to my actual pay, but a fixed amount at each increment, so my pension input doesn5 change with a salary sacrifice car.
The lease cost is inflated so that once the tax savings are taken into account then the actual cost is about a fiver cheaper per month than a normal commercial lease.
i have compared the deal I am signing up for with Tusker vs doing it as a private customer through BMW dealership - Tusker version works out about £200 better off per month for me.
Or… the company decides not to save (it was already paying the same level of contribution previously.) but either way, it’s a good touch.
Still not sure how from a tax compliance perspective it can be ok to operate the scheme in two different ways. But… it must be ok as so many companies do operate it either way. I guess a decision on which way comes down whether your org wants to be tight-arsed about it.
All that being said, I can’t see the point of salary sacrifice car schemes. The lease cost is inflated so that once the tax savings are taken into account then the actual cost is about a fiver cheaper per month than a normal commercial lease. Seems scammy.
Depends very much on the car and the provider. When I took my current car, the net payment was around £200 per month cheaper than I could find on the open lease market (as a personal lease - can’t get a business one if you’re an employee) and mine includes insurance, any maintenance and tyres, and no deposit. Today it’s £350 less than the open market.
I’m about to swap and will shortly be ordering a Polestar 2. Cheapest I can find on leasing.com for the same term and mileage age is 900 quid. I’ll be paying £650 all inclusive.
Salary sacrifice is also useful for making sure your taxable income stays within certain brackets. So it’s not just about the price of the vehicle as in taking it you may keep another benefit, for example tax-free child care, that also has considerable value to you.
Everyone’s circumstances are different though, and what works for one, won’t necessarily work for another.
will shortly be ordering a Polestar 2. Cheapest I can find on leasing.com for the same term and mileage age is 900 quid. I’ll be paying £650 all inclusive.
Similar numbers here, though going for an i4 on a 15k mile a year, 4 year, fully incl deal.
Salary sacrifice is also useful for making sure your taxable income stays within certain brackets. So it’s not just about the price of the vehicle as in taking it you may keep another benefit, for example tax-free child care, that also has considerable value to you.
Good point, I achieve the same thing by dumping money in my pension. Does make sense if the mileage is high I guess.
Good point, I achieve the same thing by dumping money in my pension. Does make sense if the mileage is high I guess.
Dumping money in a pension is much more beneficial than burning money on a lease.
I assume those of you going for the scheme do fairly big mileages anyway ? My car did just 3000 miles last year, so £600 a month is just madness. £20 a day to sit on the drive as I commute on my bike.
I started the original thread as I was mulling over salary sacrifice lease of an EV, but waiting lists were long and prices were high (over a year ago)... Now price inflation seems to have rocketed further, supply seems a bit better but it's honestly not a very economical way to get in a new EV (if there even is such a thing) I ended up sacking the idea off all together.
Dumping money in a pension is much more beneficial than burning money on a lease.
Some people privileged enough to be able to do both.