Salary sacrifice leasing

[pti]

TheDrownedApe said:

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.

To be fair, it's pretty clear that's not a gross figure.

Nor would there be any reason to include tax rate, if it were.

[Pistonheadsdicoverer]

TheDrownedApe said:

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.

It is Net. And just overnight, the price went from 527 to 531. I think the P11D went up as well. Now stands at £62755

[TheDrownedApe]

pti said:

To be fair, it's pretty clear that's not a gross figure.

Nor would there be any reason to include tax rate, if it were.

ofc but using it as an example. thanks

[Bloxxcreative]

In my brief time looking into this I wasn't aware the tax varied depending on how much over the 40% threshold you were. Although makes sense.

Say for example I was 52k gross. Then sacrifice 10k for the car, but 8k bonus. Would the 8k bonus be on top of the 52, thereby keeping the car sacrifice in the 40% bracket?

Assuming so but if anyone can confirm that'd be helpful.

[Muzzer79]

Bloxxcreative said:

In my brief time looking into this I wasn't aware the tax varied depending on how much over the 40% threshold you were. Although makes sense.

Say for example I was 52k gross. Then sacrifice 10k for the car, but 8k bonus. Would the 8k bonus be on top of the 52, thereby keeping the car sacrifice in the 40% bracket?

Assuming so but if anyone can confirm that'd be helpful.

In my experience - You are taxed on your taxable income. Salary sacrifice reduces that taxable income.

£52k gross

Minus £10k SS = £42k taxable income

Minus pension contribution - we'll call it 5% = £39400 taxable income.

Plus £8k bonus = £47400 taxable income.

[Bloxxcreative]

Muzzer79 said:

Bloxxcreative said:

In my brief time looking into this I wasn't aware the tax varied depending on how much over the 40% threshold you were. Although makes sense.

Say for example I was 52k gross. Then sacrifice 10k for the car, but 8k bonus. Would the 8k bonus be on top of the 52, thereby keeping the car sacrifice in the 40% bracket?

Assuming so but if anyone can confirm that'd be helpful.

In my experience - You are taxed on your taxable income. Salary sacrifice reduces that taxable income.

£52k gross

Minus £10k SS = £42k taxable income

Minus pension contribution - we'll call it 5% = £39400 taxable income.

Plus £8k bonus = £47400 taxable income.

Appreciate the quick reply!

[Pistonheadsdicoverer]

The leasing market is moving fast as well. I have seen major drops which have shaken my belief in SS.
The ID5 on Leaseloco is 380 at the moment and 600 on Tusker (NET).
Even accounting for 100 pounds difference in terms of goodies, Tusker is still a good 25% (or 120) more expensive per month.
Which is unacceptable.

[phpe]

Pistonheadsdicoverer said:

The leasing market is moving fast as well. I have seen major drops which have shaken my belief in SS.
The ID5 on Leaseloco is 380 at the moment and 600 on Tusker (NET).
Even accounting for 100 pounds difference in terms of goodies, Tusker is still a good 25% (or 120) more expensive per month.
Which is unacceptable.

Does that factor in insurance and maintenance on a like for like basis?

[rudester]

Pistonheadsdicoverer said:

The leasing market is moving fast as well. I have seen major drops which have shaken my belief in SS.
The ID5 on Leaseloco is 380 at the moment and 600 on Tusker (NET).
Even accounting for 100 pounds difference in terms of goodies, Tusker is still a good 25% (or 120) more expensive per month.
Which is unacceptable.

What profile are you comparing it with?
The lowest price I can see on Leaseloco without an upfront payment is £471 for 5k over 2 years

[Pistonheadsdicoverer]

phpe said:

Does that factor in insurance and maintenance on a like for like basis?

The £100 per month accounts for the difference. Although it will depend on your personal circumstances.

[Pistonheadsdicoverer]

rudester said:

What profile are you comparing it with?
The lowest price I can see on Leaseloco without an upfront payment is £471 for 5k over 2 years

4 years, 1 month upfront, personal, in stock, 5000 miles
https://www.leaseloco.com/car-leasing/volkswagen/i...

Average monthly cost is 380 with a broker fee of 300.

[essayer]

I remain to see a salary sacrifice deal that’s cheaper than a personal lease. But maybe that’s just my provider.

Also with other schemes, if you leave, are you on the hook for the gross (or early settlement fee?)

[z4RRSchris]

essayer said:

I remain to see a salary sacrifice deal that’s cheaper than a personal lease. But maybe that’s just my provider.

Also with other schemes, if you leave, are you on the hook for the gross (or early settlement fee?)

No, you company is on the hook. Hence why most want the extra insurance so if i leave a few months into a 3 year lease they arnt stuck with a tesla for ages they dont need.

And no they will never be cheaper (gross) than a personal lease. but you ake off the tax, so they are.

[TheDrownedApe]

z4RRSchris said:

essayer said:

I remain to see a salary sacrifice deal that’s cheaper than a personal lease. But maybe that’s just my provider.

Also with other schemes, if you leave, are you on the hook for the gross (or early settlement fee?)

No, you company is on the hook. Hence why most want the extra insurance so if i leave a few months into a 3 year lease they arnt stuck with a tesla for ages they dont need.

And no they will never be cheaper (gross) than a personal lease. but you ake off the tax, so they are.

With my scheme I'm on the hook for 6 months payments if I leave, any other reason and I'm not responsible.

Nonsense about the pers lease, lol

[James6112]

z4RRSchris said:

essayer said:

I remain to see a salary sacrifice deal that’s cheaper than a personal lease. But maybe that’s just my provider.

Also with other schemes, if you leave, are you on the hook for the gross (or early settlement fee?)

No, you company is on the hook. Hence why most want the extra insurance so if i leave a few months into a 3 year lease they arnt stuck with a tesla for ages they dont need.

And no they will never be cheaper (gross) than a personal lease. but you ake off the tax, so they are.

Show me a publicly available lease price, - 40% for SS & i’ll sign up

I thought not

Someone is trousering a lot of cash via the scam

Future PPI type claims?!!

[essayer]

z4RRSchris said:

No, you company is on the hook. Hence why most want the extra insurance so if i leave a few months into a 3 year lease they arnt stuck with a tesla for ages they dont need.

And no they will never be cheaper (gross) than a personal lease. but you ake off the tax, so they are.

My scheme requires me to pay the gross amount for the remainder of the lease if I leave the firm.

Again, I haven’t seen any examples of a deal where the SS deal works out cheaper, after tax, than an equivalent vehicle paid for on a personal lease from personal funds. Hopefully you guys have better SS schemes than I do, because it looks like a massive rip off to me.

[Bryans69]

I've been talking to this crew as an option for our company, and they seem to be the only one I can find that is actually cheaper than personal leasing. The example doesn't include insurance or cover for employee leaving, but even with those options, still a lot cheaper than anyone else.

Not sure if we'll offer it yet, but Octopus and Tusker are silly prices, so won't bother with them as no benefit for my staff.

This is just an example I'm looking at

https://www.myelectriclease.co.uk/salary-sacrifice...

[TheDrownedApe]

essayer said:

My scheme requires me to pay the gross amount for the remainder of the lease if I leave the firm.

Again, I haven’t seen any examples of a deal where the SS deal works out cheaper, after tax, than an equivalent vehicle paid for on a personal lease from personal funds. Hopefully you guys have better SS schemes than I do, because it looks like a massive rip off to me.

I am confused with those who say SS isn't cheaper than pers lease.

I don't want to spend time finding equivalent quotes but for me......

My volvo c40 costs me, ie my take home pay each month, £452. For this 452 I get the car, insurance for me and OH , servicing and maint.

Let's say insurance is 50 a month. That's 400 a month the car is costing me.
Then 3 years it will be one service (250) minimum and one set of tyres (600). So 850/36 = 25 rounded

So the car costs me 375 a month.

Please find me a similar car for 375 a month on pers lease.

Oh and my scheme is very poor compared to some of those tusker/octopus deals. However there are 100s of deals on my scheme that are not good value. As with anything...chase the deal not the car

Edited by TheDrownedApe on Tuesday 5th March 20:07

Edited by TheDrownedApe on Tuesday 5th March 20:15

[rudester]

essayer said:

My scheme requires me to pay the gross amount for the remainder of the lease if I leave the firm.

Again, I haven’t seen any examples of a deal where the SS deal works out cheaper, after tax, than an equivalent vehicle paid for on a personal lease from personal funds. Hopefully you guys have better SS schemes than I do, because it looks like a massive rip off to me.

[z4RRSchris]

i pay about 600 quid ish for a lease which is about 1000 on personal