Salary sacrifice leasing
Discussion
JustinCredible said:
Also depends on your salary - if you're in the 45% tax bracket then that could explain why your quote is a fair bit lower
Doesn’t the actual salary amount make a difference as well? We use Octopus EV and if you change the salary amount entered even within the same tax bracket it changes the monthly. Browter said:
Doesn’t the actual salary amount make a difference as well? We use Octopus EV and if you change the salary amount entered even within the same tax bracket it changes the monthly.
Think it depends on how close you are to the tax band threshold i.e. the monthly net amount would be different for a gross salary of 50k vs 60k but would be the same for £70k vs £100kBrowter said:
Just started looking into this so apologies if this has been answered before. I was looking at our work salary sacrifice scheme through Octopus EV and our company expense policy today. I was thinking I could get an EV through the scheme and with the included insurance, charger, servicing tyres etc along with the 45p mileage allowance for work travel (which covers all my commuting) it would make it fairly cost effective. Our expense policy says if you take an EV through the scheme you claim back a different mileage amount and points to a government site which states 9p a mile. Is this standard?
Ours through tusker is treated as a company car at the 9p rate unfortunatelyYeah a salary sacrifice car is a company car for HMRC purposes. You may find your employer is willing to swallow the difference to allow you to keep claiming the personal car rate, but it's not common.
Caught some of my colleagues out who didn't do enough miles to need a company car, switching to a salary sacrifice car dropped their fuel rate from 40 odd pence a mile down to the under 10p for the few thousand a year they were covering (can't remember what the exact figures were)
Caught some of my colleagues out who didn't do enough miles to need a company car, switching to a salary sacrifice car dropped their fuel rate from 40 odd pence a mile down to the under 10p for the few thousand a year they were covering (can't remember what the exact figures were)
ahenners said:
Browter said:
Just started looking into this so apologies if this has been answered before. I was looking at our work salary sacrifice scheme through Octopus EV and our company expense policy today. I was thinking I could get an EV through the scheme and with the included insurance, charger, servicing tyres etc along with the 45p mileage allowance for work travel (which covers all my commuting) it would make it fairly cost effective. Our expense policy says if you take an EV through the scheme you claim back a different mileage amount and points to a government site which states 9p a mile. Is this standard?
Ours through tusker is treated as a company car at the 9p rate unfortunatelyhttps://www.gov.uk/tax-relief-for-employees/vehicl...
Just got quotes from our company's provider but they do that scammy Tesla thing where they show the price "after savings"
like a Leaf Tekna is "£307/mo" (40% tax payer - monthly fee is £485) - you can lease one privately for £309/mo
Cupbra Born v2 "£505/mo" (monthly fee £820) vs private lease £428
all schemes like this or do we just have a bad one? particularly of concern because if you leave, you're then on the hook for the full fee, or handing the car back (+early termination fee)
like a Leaf Tekna is "£307/mo" (40% tax payer - monthly fee is £485) - you can lease one privately for £309/mo
Cupbra Born v2 "£505/mo" (monthly fee £820) vs private lease £428
all schemes like this or do we just have a bad one? particularly of concern because if you leave, you're then on the hook for the full fee, or handing the car back (+early termination fee)
essayer said:
Just got quotes from our company's provider but they do that scammy Tesla thing where they show the price "after savings"
like a Leaf Tekna is "£307/mo" (40% tax payer - monthly fee is £485) - you can lease one privately for £309/mo
Cupbra Born v2 "£505/mo" (monthly fee £820) vs private lease £428
all schemes like this or do we just have a bad one? particularly of concern because if you leave, you're then on the hook for the full fee, or handing the car back (+early termination fee)
Do you think showing the net cost to you is a scammy thing? Bear in mind that that net cost includes insurance and maintenancelike a Leaf Tekna is "£307/mo" (40% tax payer - monthly fee is £485) - you can lease one privately for £309/mo
Cupbra Born v2 "£505/mo" (monthly fee £820) vs private lease £428
all schemes like this or do we just have a bad one? particularly of concern because if you leave, you're then on the hook for the full fee, or handing the car back (+early termination fee)
Tusker show a full breakdown of the cost and all the deductions and BIK to get the net cost. Seems very transparent.
essayer said:
all schemes like this or do we just have a bad one? particularly of concern because if you leave, you're then on the hook for the full fee, or handing the car back (+early termination fee)
This does sound particularly bad.Ours (ZENITH) shows the Gross, the different net price dependent on your tax level and NI levels.
Not sure about the costs when you leave - need to check that.
porsch1909 said:
Do you think showing the net cost to you is a scammy thing? Bear in mind that that net cost includes insurance and maintenance
I do, because if I can lease a car for £300/mo, then I’d expect a reasonable margin to be added, and then the net cost to stay below retail. Otherwise, what’s the point?This was without insurance btw.
Basil Brush said:
As you're paying for the car, you should then be able to claim tax relief on the difference between the approved rate and the rate you get paid.
https://www.gov.uk/tax-relief-for-employees/vehicl...
Salary sacrifice cars are treated as company cars by HMRC, as others have stated.https://www.gov.uk/tax-relief-for-employees/vehicl...
They give tax relief on the monthly costs already, they don’t allow you to claim tax relief on the business mileage as well.
Adam1980 said:
But your work scheme won’t have an upfront payment and will include maintenance?
It does include maintenance but no upfront on either quoteI'd expected it to be a bit like nursery vouchers, happy to pay something for the service but the main benefit should be that the tax benefits make it significantly cheaper than going direct!
New to this thread, apologies if this has been covered somewhere before, but not time to go through all 68 pages.
Has anyone done a personal / business lease, then SS without going through one of the many (expensive it seems) schemes?
We are a small business, just looking at one or two cars possibly, don't need the 'extras' that some seem to charge, so I don't see why we can't lease direct from any lease company at a better rate, then just do the adjustments on PAYE, like we do with pension. Am I missing something? Unfortunately, most info online seems to be from companies offering schemes, which doesn't help.
Has anyone done a personal / business lease, then SS without going through one of the many (expensive it seems) schemes?
We are a small business, just looking at one or two cars possibly, don't need the 'extras' that some seem to charge, so I don't see why we can't lease direct from any lease company at a better rate, then just do the adjustments on PAYE, like we do with pension. Am I missing something? Unfortunately, most info online seems to be from companies offering schemes, which doesn't help.
EVLATECOMER said:
Basil Brush said:
As you're paying for the car, you should then be able to claim tax relief on the difference between the approved rate and the rate you get paid.
https://www.gov.uk/tax-relief-for-employees/vehicl...
Salary sacrifice cars are treated as company cars by HMRC, as others have stated.https://www.gov.uk/tax-relief-for-employees/vehicl...
They give tax relief on the monthly costs already, they don’t allow you to claim tax relief on the business mileage as well.
Shackattack123 said:
Has anyone watched the most recent Harry's Garage video? It makes for interesting viewing about the EV market. Not us folk on here who don't have to worry about battery degridation after 3-4 years but how long this subsidised EV scheme will last!
Yes, it was very interesting. Good insight to the current state of the industry and ownership issues. Shackattack123 said:
Has anyone watched the most recent Harry's Garage video? It makes for interesting viewing about the EV market. Not us folk on here who don't have to worry about battery degridation after 3-4 years but how long this subsidised EV scheme will last!
He's getting a lot of love for that video but he's also assumed that the way he uses his cars (towing and touring Europe) is how everyone uses theirs which is simply not true. For my use, local journeys with the occasional long distance, I'd never go back to ICE. My electricity usage is about £70/month and that includes my car. I'd spend more than that filling 1 tank up in my old car. The only valid point he made was about the ability of used car buyers to see the battery degradation, but then he also said you can tell what condition an ICE car is in, except you have no idea whether it's been ragged from cold every morning and is about to grenade itself.Can I ask about SS and higher earner's additional benefit. I understand that between 100k and 125k of earnings for every £2 over 100k £1 is lost from personal allowance until the point that 12.5k allowance is fully eroded at 125k (or there abouts).
When the personal allowance is lost you pay 20% on the 12.5k so 2.5k to pay in additional tax at 125k.
So if quoted a car that is net 500/mnth upto 100k, (tusker not providing a net sum for sums above 100k), at 125k is the sum as easy as the net amount of 500 /mnth less (2500/12) 208 so the actual net 'cost' of car could be said to be 292/mnth? Or have I got it wrong?
When the personal allowance is lost you pay 20% on the 12.5k so 2.5k to pay in additional tax at 125k.
So if quoted a car that is net 500/mnth upto 100k, (tusker not providing a net sum for sums above 100k), at 125k is the sum as easy as the net amount of 500 /mnth less (2500/12) 208 so the actual net 'cost' of car could be said to be 292/mnth? Or have I got it wrong?
Edited by Durhamlandy1 on Thursday 15th February 22:32
Durhamlandy1 said:
Can I ask about SS and higher earner's additional benefit. I understand that between 100k and 125k of earnings for every £2 over 100k £1 is lost from personal allowance until the point that 12.5k allowance is fully eroded at 125k (or there abouts).
When the personal allowance is lost you pay 20% on the 12.5k so 2.5k to pay in additional tax at 125k.
So if quoted a car that is net 500/mnth upto 100k, (tusker not providing a net sum for sums above 100k), at 125k is the sum as easy as the net amount of 500 /mnth less (2500/12) 208 so the actual net 'cost' of car could be said to be 292/mnth? Or have I got it wrong?
My understanding is the easiest way to work out the Net cost is take 62% from the monthly gross reduction (quoted on the tusker quote summary) and then add the BIK. This gives you the actual effect on take home pay.When the personal allowance is lost you pay 20% on the 12.5k so 2.5k to pay in additional tax at 125k.
So if quoted a car that is net 500/mnth upto 100k, (tusker not providing a net sum for sums above 100k), at 125k is the sum as easy as the net amount of 500 /mnth less (2500/12) 208 so the actual net 'cost' of car could be said to be 292/mnth? Or have I got it wrong?
Edited by Durhamlandy1 on Thursday 15th February 22:32
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