Salary sacrifice leasing

[TheDrownedApe]

essayer said:

Do these numbers stack up? Still think our SS scheme is a bit of a scam

Nissan Ariya 160kW Engage:
Leaseloco private 1+35 £427/mo
SS scheme 1+35 £653/mo (with tyres/maintenance, no insurance)

Yes, at 50% effective tax it’s cheaper. But the price is inflated in the first place.. similar margins on other cars

ouch that seems pricey. the car was always overly expensive on my scheme from it's release but has not come down to a respectable level.

My scheme is £746 GROSS with maint and insurance. 36/10k

[pti]

TheDrownedApe said:

essayer said:

Do these numbers stack up? Still think our SS scheme is a bit of a scam

Nissan Ariya 160kW Engage:
Leaseloco private 1+35 £427/mo
SS scheme 1+35 £653/mo (with tyres/maintenance, no insurance)

Yes, at 50% effective tax it’s cheaper. But the price is inflated in the first place.. similar margins on other cars

ouch that seems pricey. the car was always overly expensive on my scheme from it's release but has not come down to a respectable level.

My scheme is £746 GROSS with maint and insurance. 36/10k

Yeah, seems expensive.

160kW Evolve (top spec) is around £760 gross without insurance. I've ordered one.

[essayer]

When you say gross that's the top line off your salary, right? So my figures aren't out of line with other sacrifice schemes (obviously different cars will be better value, I just picked the Nissan as it was a comparable for leaseloco)

[39sl]

I picked up a BMW Ix in December on SS.
Love the car but the monthly net costs are 35% higher than Octopus stated they would be. I've been transparent with salary etc., and still cannot reconcile the difference. I'm working with Octopus to try to identify why I am paying so much more than they suggested I would.

Anyway, my point is that I've been using another site to run cost comparisons of EV's and it's pretty accurate, allows you to define the model, the tax band, and shows all the key data including BIK, and I believe is showing an accurate net cost (certainly more accurate than Octopus).

You cant change the mileage or term but it may help others:

https://www.corparison.co.uk/salary-sacrifice-calc...

No affiliation, just thought it was a useful site

[EVLATECOMER]

39sl said:

I picked up a BMW Ix in December on SS.
Love the car but the monthly net costs are 35% higher than Octopus stated they would be. I've been transparent with salary etc., and still cannot reconcile the difference. I'm working with Octopus to try to identify why I am paying so much more than they suggested I would.

Anyway, my point is that I've been using another site to run cost comparisons of EV's and it's pretty accurate, allows you to define the model, the tax band, and shows all the key data including BIK, and I believe is showing an accurate net cost (certainly more accurate than Octopus).

You cant change the mileage or term but it may help others:

https://www.corparison.co.uk/salary-sacrifice-calc...

No affiliation, just thought it was a useful site

So it your gross deduction as they originally stated or is it that the net effect is wrong and they don’t know why?

They should be able to go back to your quoted numbers gross and play these back to you fairly easily.

[39sl]

The gross deduction is correct and aligns to their original quote.
The difference is in the net figure, other websites align with what it is costing me net, but Octopus' net figure was £370 per month less.

With all the other sites providing similar data, I know I am paying broadly what I should be, but it frustrates me that Octopus are so far out. It also seems be the same issue with a couple of others in my organisation. I'll keep pressing Octopus for answers

[PSRG]

The OG Jester said:

patch5674 said:

So, I got access to our portal this morning. A large employer and it is with Zenith 40% tax payer.

Very underwhelmed with the cost of cars on there. I am aware of the state of the electric car market and the lack of residuals will inevitably hit the costs of the lease market.

But it does seem incredibly steep. Very ordinary cars like the ID.3 and Model 3 are north of £500 a month NET.

Do company portals fluctuate in price in a similar manner to personal leases? i.e if cars drop on lease loco there is a chance they will drop on a sal sac portal too?

I am in no rush and I know you should buy the deal not the car, but I think I may have missed the boat on the £500/600 iX's and the various EQ's.

Anyone seeing anything of interest?

Not sure how your portal works but if your spec'ing the car from scratch it will cost more. I saved about £260 a month by taking a stock car when they came in. Only choice I had was the colour. happy with that to be honest. That was with Tusker.

For our scheme, Tusker, the deals certainly don't seem to be as competitive as they were at the end of 2023 but I expect a large part of that is teh level of supportr from naufcaturers to shify meytal. Year end is often a rush to clear the decks or hit targets. At one point in December a Mercedes EQE was sub £400.

For the specifc Nissan Ariya Engage mentioned above, it is currenty £397 (36 months/10k miles/metallic) with 45% tax relief on our Tusker site. Add £34 @ 40% I think. But an 'in stock' Evolve trim is £437 and there are 20 of them in stock right now. It seems to me the best of, for Tusker at least, of salary sacrifce is for cars that manufafacturers are putitng money behind. Overall though I don't think our scheme is outrageously expensive, given what's included.

[EVLATECOMER]

39sl said:

The gross deduction is correct and aligns to their original quote.
The difference is in the net figure, other websites align with what it is costing me net, but Octopus' net figure was £370 per month less.

With all the other sites providing similar data, I know I am paying broadly what I should be, but it frustrates me that Octopus are so far out. It also seems be the same issue with a couple of others in my organisation. I'll keep pressing Octopus for answers

Wow that’s not just a rounding error.

Sorry to hear that, if you haven’t done so I would be sending screenshots showing them your research.

They may reduce your gross deduction if you push hard enough.

[z4RRSchris]

the gross number is the only number that you should use to compare between sites, it’s the number used to calc the deduction from paye etc.

my model Y Lr is £1200 odd

[mattman]

Another newbie looking into SS scheme with my employer provided via Octopus.

I am getting differing answers from Octopus on what salary amount i should use for the calculation - I receive quarterly bonus's and wanted to know if i should my OTE as the salary. Octopus are telling me just to use my base salary.

However there is a variance between the 2 figures (£343/mth or £460/mth - the lower figure is reasonable for the car and what you get with the scheme (Model Y), but the higher amount doesn't seem economically viable to me.
I don't want to place an order based on the lower rate, then have to pay the higher one - would one of you be able to confirm which I should use?

In addition, when you go through their online portal - it says that "to reclaim part of your personal tax free allowance you must inform HMRC directly via your personal tax account"
What does that mean in reality?

Sorry if this has been covered before, read through the last 20 pages and couldn't find a related answer that confirms either way! TIA

[patch5674]

survivalist said:

They definitely fluctuate on ours. 18 months ago a Taycan was £650 net and now is a few kid shy of £1400. Assume it’s a mix of available deals, residuals and insurance costs (as they need to price it to cover all qualifying employees).

After a test drive I wasn’t interested 18 months ago and I’m not interested now. Only decent deals are Tesla Model Y and the MG hot hatch.

I wanted a Fiat 500e or electric Mini (for Mrs S rather than me) but PCP or PCH are massively cheaper. I guess the only exception would be if you were young and insurance ran into thousands per year - which was the main reason I had company cars in my 20s. The year I ordered my first one the company car tax was less than half of my best insurance quote.

Good to know it isn't just ours then - Taycan isn't on it at all at the moment.

I am happy to stretch the man math's calculator as ours is an all in scheme in terms of maintenance and servicing.

Like you, I do think if I can't make it work for me a Volvo EX30 or the like could be good for the other half, but that is knocking on £500 a month for a car with a relatively low P11d

PSRG said:

For our scheme, Tusker, the deals certainly don't seem to be as competitive as they were at the end of 2023 but I expect a large part of that is teh level of supportr from naufcaturers to shify meytal. Year end is often a rush to clear the decks or hit targets. At one point in December a Mercedes EQE was sub £400.

For the specifc Nissan Ariya Engage mentioned above, it is currenty £397 (36 months/10k miles/metallic) with 45% tax relief on our Tusker site. Add £34 @ 40% I think. But an 'in stock' Evolve trim is £437 and there are 20 of them in stock right now. It seems to me the best of, for Tusker at least, of salary sacrifce is for cars that manufafacturers are putitng money behind. Overall though I don't think our scheme is outrageously expensive, given what's included.

Yeah I think those sorts of deals are probably where I will jump in - if BM start punting iX40's for circa £600 a month net for the base car (Currently £950 with sky lounge and comfort plus, £820 bog standard msport)

For reference we are showing up the Ariya Engage Pro Pilot Assist and Comfort pack (not sure if they all have this) for £444 net for 40% tax payer. So I hope our scheme is broadly competitive.

Although we too (Zenith) are showing the Ariya as being available as a stock car but that doesn't give a price it gives a number to call so the price above is for ordering. But guessing a number of Ariya's are sitting around somewhere

[sahajesh]

AyBee said:

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.

I saw that video and it turned me off. Rich guy whining without making any effort to explain the context of his opinion.

[TheDeuce]

sahajesh said:

AyBee said:

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.

I saw that video and it turned me off. Rich guy whining without making any effort to explain the context of his opinion.

The true stat is that in the UK 99%+ of all journeys are less than 100 miles. In other words, the cheapest current EV you could buy is more than up to the job.

But of course even though it's true most of us rarely travel that far by car, there are exceptions... But even then, the occasional reliance on en-route charging has to be offset against the general ease of home charging and the cost saving of an EV.

What I find weird is another stat: it turns out that 99% of those that simply don't like EV's happen to be towing boats up and down the country 3x a week and therefore can't possibly entertain anything they can't constantly refuel. It's bizarre, I've spent 20 years driving on our motorways and I hardly ever see a boat being towed - yet apparently there are millions that do it endlessly and over great distances. Perhaps they take the back roads, on their 300 mile long journeys..

[z4RRSchris]

mattman said:

Another newbie looking into SS scheme with my employer provided via Octopus.

I am getting differing answers from Octopus on what salary amount i should use for the calculation - I receive quarterly bonus's and wanted to know if i should my OTE as the salary. Octopus are telling me just to use my base salary.

However there is a variance between the 2 figures (£343/mth or £460/mth - the lower figure is reasonable for the car and what you get with the scheme (Model Y), but the higher amount doesn't seem economically viable to me.
I don't want to place an order based on the lower rate, then have to pay the higher one - would one of you be able to confirm which I should use?

In addition, when you go through their online portal - it says that "to reclaim part of your personal tax free allowance you must inform HMRC directly via your personal tax account"
What does that mean in reality?

Sorry if this has been covered before, read through the last 20 pages and couldn't find a related answer that confirms either way! TIA

the car is a deduction from your gross. the scheme kindly does it as a paye deduction once a month.

if you earn bonus etc ontop it’s calculated against your entire earnings. so you may for example be in 40% rate on basic, but bonus pushes you well into 60%.

this the effective discount is based of paying 60% not 40%.

tax return at end of year will sort it all out automatically.

[Bloxxcreative]

Racing Sombrero said:

I had our new Mercedes EQB delivered this week. Really happy with it considering I'd never seen, sat in or driven one. The man maths stacked up to get into something new when I'd scraped through winter in a damp, frosted up 2005 seat leon usually with a dead battery when I had to pick up my daughter from after school club.

Went for the 350 and it does haul its self around quickly for a 7 seater bus. Not particularly engaging though, after the initial punch its effortlessly cruising along and there's not much to do, no gears to change which is something that has taken a bit of time to get used to.

Waiting to see the first pay cheque to make sure its not a scam

How much are you paying if you don't mind sharing? I'm about to join a company and looking at their SS scheme for one of these so would help know what I may be on the hook for each month. Salary will just be inside the 40% bracket.

[Pistonheadsdicoverer]

I am looking at that exact model. 30 months, top of the range model, 40%, 5000 miles, 527 pounds for a P11d of 62K

[Pistonheadsdicoverer]

James6112 said:

I’m going for the cheapest reasonable car.
Nissan Leaf, £260 all inclusive. Maint/Tyres/Insurance. 3 years/30k miles.

Not the best. But seems to fit the bill. Will sell the 10 year old diesel!

Assuming that the diesel would die in that time & be worthless (£5k now)
£136 a month
Insurance say £40 a month
- diesel
Call it £50 a month..
Man maths!

Wife has a Phev for cheap local & petrol for longer trips.

EDF tariff, 8p kwh 0000-0500

Edited by James6112 on Tuesday 20th February 22:45

I assume it is not with Tusker as they don't have the Leaf. Cheapest they have is the MG4 at 310.

Correction: They have the leaf and it is 367 pounds N-Connecta Auto version

30 months, 5000 miles, 40 year old, 40%

Edited by Pistonheadsdicoverer on Monday 4th March 23:22

[Pistonheadsdicoverer]

JustinCredible said:

My employer has just signed up to Octopus salary sacrifice EV leasing, lots of cars to choose from, this seems decent value for a Mercedes with a decent spec. Price includes insurance, road tax & any maintenance plus they install a free home charger and you get 4000 miles of free home charging if you switch to Intelligent Octopus Go.

Edited by JustinCredible on Thursday 1st February 15:14

Same at Tusker is 516!!!!!

Without Octopus Go

[Gone fishing]

z4RRSchris said:

the car is a deduction from your gross. the scheme kindly does it as a paye deduction once a month.

if you earn bonus etc ontop it’s calculated against your entire earnings. so you may for example be in 40% rate on basic, but bonus pushes you well into 60%.

this the effective discount is based of paying 60% not 40%.

tax return at end of year will sort it all out automatically.

On a similar basis, your salary needs to be above the 40% tax threshold by your total gross payment for the year to get the 40% benefit. If you’re only say 6k above the threshold (and remember that’s after pension contributions etc too) but your gross payment is 12k a year, only 6k will be at 40%.

[TheDrownedApe]

Pistonheadsdicoverer said:

I am looking at that exact model. 30 months, top of the range model, 40%, 5000 miles, 527 pounds for a P11d of 62K

hey dude, welcome to the forums and we are all for judging deals in here. Just when you post like this, please include gross or net in your price as the two are wildly different.