Salary sacrifice leasing
Discussion
James6112 said:
Model Y on Tesla site £17995 to lease over 3 years / 36000 miles
Take off tax & national insurance
£250 a month
Where do I sign?
Of course it’s not possible. The lease companies are ripping off the public , trousering that ‘tax’!
Take off tax & national insurance
£250 a month
Where do I sign?
Of course it’s not possible. The lease companies are ripping off the public , trousering that ‘tax’!
The fact that Tusker have historically made 40% profit would certainly align with that.
My company has just lauched a salary sacrifice scheme through Leaseplan.
Can anyone tell me if the Net prices take into account the rising BIK? BIK is currently 2% and increasing by 1% each year, reaching 5% by 2028.
A few of the offers on the website are just about worthwhile. If these BIK increases are not included in the NET calculations, then any savings could quickly be wiped out by the increases.
Can anyone tell me if the Net prices take into account the rising BIK? BIK is currently 2% and increasing by 1% each year, reaching 5% by 2028.
A few of the offers on the website are just about worthwhile. If these BIK increases are not included in the NET calculations, then any savings could quickly be wiped out by the increases.
rudester said:
My company has just lauched a salary sacrifice scheme through Leaseplan.
Can anyone tell me if the Net prices take into account the rising BIK? BIK is currently 2% and increasing by 1% each year, reaching 5% by 2028.
A few of the offers on the website are just about worthwhile. If these BIK increases are not included in the NET calculations, then any savings could quickly be wiped out by the increases.
With tusker it shows the net amount for each tax year accounting for the bik changes. You'd have to see what lease plan show on the calc. For me something with 58k P11D in the mid 500s net seems to increase about £20pm per tax year as a result Can anyone tell me if the Net prices take into account the rising BIK? BIK is currently 2% and increasing by 1% each year, reaching 5% by 2028.
A few of the offers on the website are just about worthwhile. If these BIK increases are not included in the NET calculations, then any savings could quickly be wiped out by the increases.
Edited by ahenners on Wednesday 17th April 08:35
For salary sacrifice, like leases in general but more so, you need to use spreadsheet. Having just been through the process:
1. Check out the prices for various cars, get the final quotes with the extras that you want (in particularly driving assist) - cross check to the manufacturer site as to what the exact options do (BMW can be extra confusing). Remember that for most extras, you will be paying most of the cost of it during the lease.
2. Double check your tax, in particularly impact on child benefit (£60k+) and income tax taper (£100k+).
3. Consider a bit of tax efficiency, for example maybe not impacted by 2 as such, but if you can afford to chuck a bit more into your pension does it then come into play?
4. Save the quote (I used leaseplan and I think the quote is valid for 28 days).
5. Check the lease price again in a couple of weeks - particularly around month/quarter ends - this is important, I notice that the iX is now £200 pm gross higher (new quarter and new 2025 version - though virtually no difference in features).
6. Don't get the charger from the scheme, get the one that works best with your electricity (probably some plan from octopus).
7. Recheck how much you current car costs - my old 2011 diesel passat once allowing for insurance, ULEZ, diesel, general repairs and tyres was within a couple of grand of the post tax cost of an iX. Then also factor in finance costs of a replacement car - £20k is £1k pa at 5%. Add in depreciation of said £20k car and suddenly the new car is great value.
8. Sit back, wait for new car to be delivered and wonder how on earth you have swapped an old car for a nice new shiny one with a load of fancy stuff, which may break but is covered by the scheme!
1. Check out the prices for various cars, get the final quotes with the extras that you want (in particularly driving assist) - cross check to the manufacturer site as to what the exact options do (BMW can be extra confusing). Remember that for most extras, you will be paying most of the cost of it during the lease.
2. Double check your tax, in particularly impact on child benefit (£60k+) and income tax taper (£100k+).
3. Consider a bit of tax efficiency, for example maybe not impacted by 2 as such, but if you can afford to chuck a bit more into your pension does it then come into play?
4. Save the quote (I used leaseplan and I think the quote is valid for 28 days).
5. Check the lease price again in a couple of weeks - particularly around month/quarter ends - this is important, I notice that the iX is now £200 pm gross higher (new quarter and new 2025 version - though virtually no difference in features).
6. Don't get the charger from the scheme, get the one that works best with your electricity (probably some plan from octopus).
7. Recheck how much you current car costs - my old 2011 diesel passat once allowing for insurance, ULEZ, diesel, general repairs and tyres was within a couple of grand of the post tax cost of an iX. Then also factor in finance costs of a replacement car - £20k is £1k pa at 5%. Add in depreciation of said £20k car and suddenly the new car is great value.
8. Sit back, wait for new car to be delivered and wonder how on earth you have swapped an old car for a nice new shiny one with a load of fancy stuff, which may break but is covered by the scheme!
iom_dave said:
Really useful stuff
I'd concur with all of that having been through it a couple of times.I'd also add not to assume that even within the same make/model that the lease prices will make any sense in terms of trim level.
When I ordered my Peugeot e2008, the top of the range GT Premium was significantly less per month than one of the middle trim levels.
As iom dave says, check all the various options and put the results in a spreadsheet. Sometimes surprising things pop out. (Like on my new lease, where 30 months was cheaper than 36 months, going against normal logic)
Paul_M3 said:
I'd concur with all of that having been through it a couple of times.
I'd also add not to assume that even within the same make/model that the lease prices will make any sense in terms of trim level.
When I ordered my Peugeot e2008, the top of the range GT Premium was significantly less per month than one of the middle trim levels.
As iom dave says, check all the various options and put the results in a spreadsheet. Sometimes surprising things pop out. (Like on my new lease, where 30 months was cheaper than 36 months, going against normal logic)
Arval quite handily offer a spreadsheet export. As always, the best deals are to be had if you’re not dead set on a particular make and model.I'd also add not to assume that even within the same make/model that the lease prices will make any sense in terms of trim level.
When I ordered my Peugeot e2008, the top of the range GT Premium was significantly less per month than one of the middle trim levels.
As iom dave says, check all the various options and put the results in a spreadsheet. Sometimes surprising things pop out. (Like on my new lease, where 30 months was cheaper than 36 months, going against normal logic)
iom_dave said:
7. Recheck how much you current car costs - my old 2011 diesel passat once allowing for insurance, ULEZ, diesel, general repairs and tyres was within a couple of grand of the post tax cost of an iX. Then also factor in finance costs of a replacement car - £20k is £1k pa at 5%. Add in depreciation of said £20k car and suddenly the new car is great value.
8. Sit back, wait for new car to be delivered and wonder how on earth you have swapped an old car for a nice new shiny one with a load of fancy stuff, which may break but is covered by the scheme!
This is what has prompted us to do this. My wife can get a car through tusker and it looks like we are going with the i4 m50 for 720 a month.8. Sit back, wait for new car to be delivered and wonder how on earth you have swapped an old car for a nice new shiny one with a load of fancy stuff, which may break but is covered by the scheme!
I posted above about this but basically while that sounds horrendous to me as a monthly amount for a car it is in fact bordering dirt cheap, especially when you consider what your getting.
I did the sums and from select leasing the same car would total around 1200 iirc a month by the time you factor insurance, service, tyres, deposit amount spread over the term.
tusker includes
insurance, all maintenance (from what i gather even consumables like brakes) all tyres, servicing.
Now take those costs off the 720 and i would estimate that the car is costing around £500 a month.
now we take off the fuel, we have solar panels so i reckon running it will cost either nothing or not a lot.
Lets say i use some man maths and take away that fuel cost from the 500. approx 150 a month she does.
so now we've got a brand new car for 350 a month.
Which nowadays doesnt buy you much at all.......
She's got the quote saved and i never thought id say this about an electric car but im quite excited
m3jappa said:
This is what has prompted us to do this. My wife can get a car through tusker and it looks like we are going with the i4 m50 for 720 a month.
I posted above about this but basically while that sounds horrendous to me as a monthly amount for a car it is in fact bordering dirt cheap, especially when you consider what your getting.
I did the sums and from select leasing the same car would total around 1200 iirc a month by the time you factor insurance, service, tyres, deposit amount spread over the term.
tusker includes
insurance, all maintenance (from what i gather even consumables like brakes) all tyres, servicing.
Now take those costs off the 720 and i would estimate that the car is costing around £500 a month.
now we take off the fuel, we have solar panels so i reckon running it will cost either nothing or not a lot.
Lets say i use some man maths and take away that fuel cost from the 500. approx 150 a month she does.
so now we've got a brand new car for 350 a month.
Which nowadays doesnt buy you much at all.......
She's got the quote saved and i never thought id say this about an electric car but im quite excited
They are quite cool - M50 is going to be very quick - I just went for the ix40, the response is still amazing quick but used to a passat tdi... One thing - check you've got the parking assistant stuff, they didn't give the overhead 360 view on the ix without the extra package - suspect it will pay for itself over the lifetime of the lease re curbing alloys etc.I posted above about this but basically while that sounds horrendous to me as a monthly amount for a car it is in fact bordering dirt cheap, especially when you consider what your getting.
I did the sums and from select leasing the same car would total around 1200 iirc a month by the time you factor insurance, service, tyres, deposit amount spread over the term.
tusker includes
insurance, all maintenance (from what i gather even consumables like brakes) all tyres, servicing.
Now take those costs off the 720 and i would estimate that the car is costing around £500 a month.
now we take off the fuel, we have solar panels so i reckon running it will cost either nothing or not a lot.
Lets say i use some man maths and take away that fuel cost from the 500. approx 150 a month she does.
so now we've got a brand new car for 350 a month.
Which nowadays doesnt buy you much at all.......
She's got the quote saved and i never thought id say this about an electric car but im quite excited
iom_dave said:
For salary sacrifice, like leases in general but more so, you need to use spreadsheet. Having just been through the process:
1. Check out the prices for various cars, get the final quotes with the extras that you want (in particularly driving assist) - cross check to the manufacturer site as to what the exact options do (BMW can be extra confusing). Remember that for most extras, you will be paying most of the cost of it during the lease.
2. Double check your tax, in particularly impact on child benefit (£60k+) and income tax taper (£100k+).
3. Consider a bit of tax efficiency, for example maybe not impacted by 2 as such, but if you can afford to chuck a bit more into your pension does it then come into play?
4. Save the quote (I used leaseplan and I think the quote is valid for 28 days).
5. Check the lease price again in a couple of weeks - particularly around month/quarter ends - this is important, I notice that the iX is now £200 pm gross higher (new quarter and new 2025 version - though virtually no difference in features).
6. Don't get the charger from the scheme, get the one that works best with your electricity (probably some plan from octopus).
7. Recheck how much you current car costs - my old 2011 diesel passat once allowing for insurance, ULEZ, diesel, general repairs and tyres was within a couple of grand of the post tax cost of an iX. Then also factor in finance costs of a replacement car - £20k is £1k pa at 5%. Add in depreciation of said £20k car and suddenly the new car is great value.
8. Sit back, wait for new car to be delivered and wonder how on earth you have swapped an old car for a nice new shiny one with a load of fancy stuff, which may break but is covered by the scheme!
I’d add to 2, and if you’re not far from lower tax bands, check that too. Somebody, I think on here, had in,y just drifted into high rate / 40% tax, most of the SS would against basic tax rates 1. Check out the prices for various cars, get the final quotes with the extras that you want (in particularly driving assist) - cross check to the manufacturer site as to what the exact options do (BMW can be extra confusing). Remember that for most extras, you will be paying most of the cost of it during the lease.
2. Double check your tax, in particularly impact on child benefit (£60k+) and income tax taper (£100k+).
3. Consider a bit of tax efficiency, for example maybe not impacted by 2 as such, but if you can afford to chuck a bit more into your pension does it then come into play?
4. Save the quote (I used leaseplan and I think the quote is valid for 28 days).
5. Check the lease price again in a couple of weeks - particularly around month/quarter ends - this is important, I notice that the iX is now £200 pm gross higher (new quarter and new 2025 version - though virtually no difference in features).
6. Don't get the charger from the scheme, get the one that works best with your electricity (probably some plan from octopus).
7. Recheck how much you current car costs - my old 2011 diesel passat once allowing for insurance, ULEZ, diesel, general repairs and tyres was within a couple of grand of the post tax cost of an iX. Then also factor in finance costs of a replacement car - £20k is £1k pa at 5%. Add in depreciation of said £20k car and suddenly the new car is great value.
8. Sit back, wait for new car to be delivered and wonder how on earth you have swapped an old car for a nice new shiny one with a load of fancy stuff, which may break but is covered by the scheme!
And if you do any business, work out any differences in reimbursement including rebates from hmrc
Yup, tax boundaries are worth remembering. Also ideally you want the BIK tax to be in the lower tax. In other words, if near the boundary don't forget about the BIK is effectively income so maybe need to put a little extra into pension. This effect will increase as the BIK rate goes from 2 percent to 5 percent over the next few years.
Final point with remembering re all this tax stuff, is, if you can, do the pension contributions towards the end of the tax year. If you lose your job and have stuck a load of money in you pension already during the tax year then you don't have the money when you need it and you may not be in the higher tax band and not get the tax saving as have less income that year.
Final point with remembering re all this tax stuff, is, if you can, do the pension contributions towards the end of the tax year. If you lose your job and have stuck a load of money in you pension already during the tax year then you don't have the money when you need it and you may not be in the higher tax band and not get the tax saving as have less income that year.
Can I get a sense of the generosity (or otherwise!) of my car allowance compared to others?
I’d describe myself as mid to senior management (40% tax payer) and more ‘job need’ company car than management perk. I’m doing between 12k and 15k biz miles annually.
‘Back in the day’ a company car was just that. Aside from any BIK payments, the car was entirely funded by the company and there would typically be a benchmark vehicle for each grade and perhaps the option to select a more expensive/ nicer car if the employee chipped in. If you didn’t want to pay extra, you still had a ‘free’ car.
We’ve just moved to a sal sac scheme through Tusker and I get an allowance of £500 per month per tax, which nets down to c. £300 per month. On Tusker our options are locked down to 48 months and 18k miles per annum.
Trouble is, pretty much anything that’s suitable (by that, I mean an EV with >250 miles range, preferably over 300 miles) seems to involve me chipping in at least £75 per month towards the lease cost, plus the BIK. Often, it’s closer to £150 per month, plus BIK. Not looking at exotica here, but run of the mill cars from Renault, Hyundai, Kia, Skoda etc.
Some will say that there’s nowhere else that I’d get a new car for such a small monthly outlay and I get that. Just feels that the allowance is stingy, when it won’t even cover a pretty ordinaire car without me contributing more each month…
So my question - is my monthly allowance to use towards sal sac stingy? I challenged our HR department over it and they said the allowances were already in excess of the norm as determined by their benchmarking exercise!
I’d describe myself as mid to senior management (40% tax payer) and more ‘job need’ company car than management perk. I’m doing between 12k and 15k biz miles annually.
‘Back in the day’ a company car was just that. Aside from any BIK payments, the car was entirely funded by the company and there would typically be a benchmark vehicle for each grade and perhaps the option to select a more expensive/ nicer car if the employee chipped in. If you didn’t want to pay extra, you still had a ‘free’ car.
We’ve just moved to a sal sac scheme through Tusker and I get an allowance of £500 per month per tax, which nets down to c. £300 per month. On Tusker our options are locked down to 48 months and 18k miles per annum.
Trouble is, pretty much anything that’s suitable (by that, I mean an EV with >250 miles range, preferably over 300 miles) seems to involve me chipping in at least £75 per month towards the lease cost, plus the BIK. Often, it’s closer to £150 per month, plus BIK. Not looking at exotica here, but run of the mill cars from Renault, Hyundai, Kia, Skoda etc.
Some will say that there’s nowhere else that I’d get a new car for such a small monthly outlay and I get that. Just feels that the allowance is stingy, when it won’t even cover a pretty ordinaire car without me contributing more each month…
So my question - is my monthly allowance to use towards sal sac stingy? I challenged our HR department over it and they said the allowances were already in excess of the norm as determined by their benchmarking exercise!
Tractor Driver said:
Can I get a sense of the generosity (or otherwise!) of my car allowance compared to others?
I’d describe myself as mid to senior management (40% tax payer) and more ‘job need’ company car than management perk. I’m doing between 12k and 15k biz miles annually.
‘Back in the day’ a company car was just that. Aside from any BIK payments, the car was entirely funded by the company and there would typically be a benchmark vehicle for each grade and perhaps the option to select a more expensive/ nicer car if the employee chipped in. If you didn’t want to pay extra, you still had a ‘free’ car.
We’ve just moved to a sal sac scheme through Tusker and I get an allowance of £500 per month per tax, which nets down to c. £300 per month. On Tusker our options are locked down to 48 months and 18k miles per annum.
Trouble is, pretty much anything that’s suitable (by that, I mean an EV with >250 miles range, preferably over 300 miles) seems to involve me chipping in at least £75 per month towards the lease cost, plus the BIK. Often, it’s closer to £150 per month, plus BIK. Not looking at exotica here, but run of the mill cars from Renault, Hyundai, Kia, Skoda etc.
Some will say that there’s nowhere else that I’d get a new car for such a small monthly outlay and I get that. Just feels that the allowance is stingy, when it won’t even cover a pretty ordinaire car without me contributing more each month…
So my question - is my monthly allowance to use towards sal sac stingy? I challenged our HR department over it and they said the allowances were already in excess of the norm as determined by their benchmarking exercise!
I received £500 p/m pre tax car allowance. I’d describe myself as mid to senior management (40% tax payer) and more ‘job need’ company car than management perk. I’m doing between 12k and 15k biz miles annually.
‘Back in the day’ a company car was just that. Aside from any BIK payments, the car was entirely funded by the company and there would typically be a benchmark vehicle for each grade and perhaps the option to select a more expensive/ nicer car if the employee chipped in. If you didn’t want to pay extra, you still had a ‘free’ car.
We’ve just moved to a sal sac scheme through Tusker and I get an allowance of £500 per month per tax, which nets down to c. £300 per month. On Tusker our options are locked down to 48 months and 18k miles per annum.
Trouble is, pretty much anything that’s suitable (by that, I mean an EV with >250 miles range, preferably over 300 miles) seems to involve me chipping in at least £75 per month towards the lease cost, plus the BIK. Often, it’s closer to £150 per month, plus BIK. Not looking at exotica here, but run of the mill cars from Renault, Hyundai, Kia, Skoda etc.
Some will say that there’s nowhere else that I’d get a new car for such a small monthly outlay and I get that. Just feels that the allowance is stingy, when it won’t even cover a pretty ordinaire car without me contributing more each month…
So my question - is my monthly allowance to use towards sal sac stingy? I challenged our HR department over it and they said the allowances were already in excess of the norm as determined by their benchmarking exercise!
I know more senior colleagues (Director or Senior Manager level) who receive north of £700 but not much more and I know lower level techs who travel frequently but only received £250 p/m pre tax so it really does vary.
Tractor Driver said:
So my question - is my monthly allowance to use towards sal sac stingy? I challenged our HR department over it and they said the allowances were already in excess of the norm as determined by their benchmarking exercise!
I work for a large company (60k employees worldwide) and I am a mere cog in the machinery.At my level it is 500/m. My boss (has global director in his title) gets 600/m so not too much in it.
Downward said:
As a newbie to 4wd cars, Assume as it’s a bit fast the front tyres will wear faster so will Tusker allow all 4 to be replaced ?
The only rule is that they can’t be replaced until they’re 2mm or below. Other than that I think you can have as many tyres as you want. (Within reason, obviously)If you don’t want the newer tyres on the front, I’m sure kwik fit would rotate the wheels front to back for you as they do the replacement.
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