Salary sacrifice leasing

[xerawh]

NomadicTurbo said:

Pistonheadsdicoverer said:

The final numbers will depend on your individual circumstances.
Where you leave, how old you are, another name drivers etc.
Within the same leasing company that should be minimal IMHO.
Across leasing companies, it kind of shows who fleeces us the most.

True, I also have my partner down on the insurance, off street parking etc so assume some of that price difference is due to the above.

other than adding additional driver (and date of birth), i havent' been asked about parking, address, etc so not sure if it makes a difference?

Only details relating to me are name, dob and salary

[KGoogle]

I pay £365 a month which includes everything for a Peugeot 5008 on my dads work scheme I’m not sure this salary sacrifice for a nicer car is really worth it only one I’m looking at is a model Y or 3 and it’s seeming like double the monthly costs

Edited by KGoogle on Thursday 28th March 15:36

[z4RRSchris]

c1250 gross is my MYLR. 45% tax and some savings on NI and employers NI can get that to circa 600 net

[Pistonheadsdicoverer]

xerawh said:

other than adding additional driver (and date of birth), i havent' been asked about parking, address, etc so not sure if it makes a difference?

Only details relating to me are name, dob and salary

Tusker asks for your address, employment type, whether you want to add a driver and your payroll number

[RobbyJ]

Hi all, I'm new to all this company car lark and SS leasing but I have a question. I'm in the process of taking a new role that comes with a £6500 annual car allowance that I can either take as a car or as salary. I realise I'll probably only be able to work this out once I've joined but do others have experience of how this works? If I want to put more in to get a nicer car can I, and does that count as salary sacrifice? I'm a 45% tax payer.

I'm looking to get something like a Taycan 4S, Lotus Eletre or at the cheaper end possibly a Model Y performance. If I can't make the numbers remotely work I guess I'll just take the cash and stick with the Model S for a while longer or just buy a newer car privately.

[z4RRSchris]

that 6500 is gross, so 541pm

your company MAY run a salary sacrifice, or not. if they don’t then you’ll just take the company car and pay BIK which on EVs is ultra low.

if they do run a SS take it as salary, top it up by 1500pm and you might get your Taycan.

same same

[Wdk1866]

PistonTim said:

So that would be £536 take home change then as I’m over the £100k threshold?

Sorry for all the questions!

Hey, i am in a similar situation to you. Did you end up ordering, if yes what was the calculation you used and was it accurate to your actual net monthly costs?

thanks

[Downward]

Sheepshanks said:

Daughter's employer (a privatised part of the public sector) is looking at SS with Tusker. They've dismissed the idea for years but apparently they now think it's worth doing as they (the employer) could save a significant amount in employers NI and employer pension contributions.

Is it "fair" to look at the cost fully grossed up for tax, employees NI and employees pension? I think it is, and that makes the cost of the cars look completely insane. I had a look at Tuskers accounts - they're doing pretty well, unsurprisingly.

It’s been going on since Cyclescheme, They just took a 10% cut of every sale.

[Downward]

Prices on Tusker have gone up 10% this year I’ve noticed.

Although charging £500 a month for a Corsa E is a bit rich. Guess the insurance is the factor as you can use the scheme at any age.

[Wdk1866]

Downward said:

Sheepshanks said:

Daughter's employer (a privatised part of the public sector) is looking at SS with Tusker. They've dismissed the idea for years but apparently they now think it's worth doing as they (the employer) could save a significant amount in employers NI and employer pension contributions.

Is it "fair" to look at the cost fully grossed up for tax, employees NI and employees pension? I think it is, and that makes the cost of the cars look completely insane. I had a look at Tuskers accounts - they're doing pretty well, unsurprisingly.

It’s been going on since Cyclescheme, They just took a 10% cut of every sale.

My work is in a scheme with Tusker, my current car (private lease) is going back in June / July time and so starting to look more seriously at my options. I find the Gross values really hard to stomach.

so an in stock Polestar 2 dual motor 421 long range

4 years at 7.5 miles, with insurance, maint +++

is

Gross £870
i. Tax saving - £348
NI saving -£17
BIK £36
Net £541

870 feels a bit rich from Tusker!

[z4RRSchris]

forget the gross, the tax payer are stomaching that not you, and they make it the exact amount to make it cheaper if you are a 40% tax payer, whilst trousering a nice profit.

all that matters is the NET,

[NomadicTurbo]

z4RRSchris said:

forget the gross, the tax payer are stomaching that not you, and they make it the exact amount to make it cheaper if you are a 40% tax payer, whilst trousering a nice profit.

all that matters is the NET,

Does the gross figure not have implications to your pension contributions?

[ChocolateFrog]

I can see me tapping out at the end of my deal. Not for another 34 months but by then I reckon something like a EV6 GT or even one of the higher end Model S's will be reasonably priced and I'll just go for that privately.

A £260pm X-Power is decent (admittedly mine is a little more) but the figures above are ridiculous so if they're the same in a few years there's no way I'll be taking another one.

Also helped by the fact I now don't need to pay back CB and I've already got my free £1000 charger.

[theboss]

z4RRSchris said:

forget the gross, the tax payer are stomaching that not you, and they make it the exact amount to make it cheaper if you are a 40% tax payer, whilst trousering a nice profit.

all that matters is the NET,

To you perhaps. You have to weigh up the value of those gross earnings and decide if there's a more worthy sacrifice option. I guess if somebody is maxxing their pension contribution entirely and is backed into a corner with few other tax relief options, they may accept the same logic. I wouldn't.

[z4RRSchris]

NomadicTurbo said:

Does the gross figure not have implications to your pension contributions?

pensions are for the weak

[Basil Brush]

z4RRSchris said:

NomadicTurbo said:

Does the gross figure not have implications to your pension contributions?

pensions are for the weak

Not if you can use it to reclaim enough tax to pay for your car outright and keep the cash.

[Basil Brush]

Wdk1866 said:

Downward said:

Sheepshanks said:

Daughter's employer (a privatised part of the public sector) is looking at SS with Tusker. They've dismissed the idea for years but apparently they now think it's worth doing as they (the employer) could save a significant amount in employers NI and employer pension contributions.

Is it "fair" to look at the cost fully grossed up for tax, employees NI and employees pension? I think it is, and that makes the cost of the cars look completely insane. I had a look at Tuskers accounts - they're doing pretty well, unsurprisingly.

It’s been going on since Cyclescheme, They just took a 10% cut of every sale.

My work is in a scheme with Tusker, my current car (private lease) is going back in June / July time and so starting to look more seriously at my options. I find the Gross values really hard to stomach.

so an in stock Polestar 2 dual motor 421 long range

4 years at 7.5 miles, with insurance, maint +++

is

Gross £870
i. Tax saving - £348
NI saving -£17
BIK £36
Net £541

870 feels a bit rich from Tusker!

The same car was 1200 gross with our provider a few months back so that's not bad!

[z4RRSchris]

Basil Brush said:

Not if you can use it to reclaim enough tax to pay for your car outright and keep the cash.

The "cash" however is locked into your pension till your old and wrinkley.

id rather money and toys now.

[Sheepshanks]

z4RRSchris said:

forget the gross, the tax payer are stomaching that not you, and they make it the exact amount to make it cheaper if you are a 40% tax payer, whilst trousering a nice profit.

all that matters is the NET,

Obviously that's how "they" want you to look at it, but it grates that, on the face of it, these cars should be quite a lot cheaper, even allowing for them including insurance (say £50-£100 mth depending on usual factors)) and service / maint (which should be negligible on most EV leases).

[ChocolateFrog]

Sheepshanks said:

z4RRSchris said:

forget the gross, the tax payer are stomaching that not you, and they make it the exact amount to make it cheaper if you are a 40% tax payer, whilst trousering a nice profit.

all that matters is the NET,

Obviously that's how "they" want you to look at it, but it grates that, on the face of it, these cars should be quite a lot cheaper, even allowing for them including insurance (say £50-£100 mth depending on usual factors)) and service / maint (which should be negligible on most EV leases).

Judging by my tyres I reckon I'm going to need some new ones between 5-6k. So 2 sets a year at min £700 to Tusker.

I'm doing my bit.