Car Salary Sacrifice Scheme - Pension/Bonus/Other Benefits
Discussion
New to SS and always owned cars outright, so just after some info.
I’m just waiting on our Accountant (Employers) to confirm figures for what the Lotus Eletre SS will look like. I’ve got an idea, but want them to run it through the system to give me more accurate figures.
Am I right in thinking (need to check policy) that depending on the type of pension, a ‘notional’ or ‘reference’ salary can be used to calculate contributions? So potentially no impact on this.
Does the same work for bonuses or is that more at the discretion of the employer? I currently get a 10% bonus, but if sacrifices salary is used this would mean a circa £1k reduction in bonus.
Anything else I should be considering?
I’m just waiting on our Accountant (Employers) to confirm figures for what the Lotus Eletre SS will look like. I’ve got an idea, but want them to run it through the system to give me more accurate figures.
Am I right in thinking (need to check policy) that depending on the type of pension, a ‘notional’ or ‘reference’ salary can be used to calculate contributions? So potentially no impact on this.
Does the same work for bonuses or is that more at the discretion of the employer? I currently get a 10% bonus, but if sacrifices salary is used this would mean a circa £1k reduction in bonus.
Anything else I should be considering?
They're both at the discretion of your employer - as the name implies you are sacrificing salary for a different type of benefit so if your employer wants to do it that way then both pension and bonus could be based on the post-sacrifice amount. However I would have thought most employers would still use the pre-sacrifice amount as it's a bit tight otherwise. Ask HR (or the accountant again- they will quite possibly have a better idea anyway).
As an aside I've got access to a salsac scheme and was super keen to take advantage as I'd heard tales of people rolling around in Taycans for buttons. However I think they must have been on the NHS scheme as every time I've got a quote for something decent doing decent mileage it seems really expensive (still cheaper than if I had to do it privately, but loads more than I consider sane to spend on a normal-ish family car). Hope it works for you though.
As an aside I've got access to a salsac scheme and was super keen to take advantage as I'd heard tales of people rolling around in Taycans for buttons. However I think they must have been on the NHS scheme as every time I've got a quote for something decent doing decent mileage it seems really expensive (still cheaper than if I had to do it privately, but loads more than I consider sane to spend on a normal-ish family car). Hope it works for you though.
Roger Irrelevant said:
They're both at the discretion of your employer - as the name implies you are sacrificing salary for a different type of benefit so if your employer wants to do it that way then both pension and bonus could be based on the post-sacrifice amount. However I would have thought most employers would still use the pre-sacrifice amount as it's a bit tight otherwise. Ask HR (or the accountant again- they will quite possibly have a better idea anyway).
As an aside I've got access to a salsac scheme and was super keen to take advantage as I'd heard tales of people rolling around in Taycans for buttons. However I think they must have been on the NHS scheme as every time I've got a quote for something decent doing decent mileage it seems really expensive (still cheaper than if I had to do it privately, but loads more than I consider sane to spend on a normal-ish family car). Hope it works for you though.
Thanks. I’m having these chats with Employer/Accountant next week. We are a small business so don’t have HR.As an aside I've got access to a salsac scheme and was super keen to take advantage as I'd heard tales of people rolling around in Taycans for buttons. However I think they must have been on the NHS scheme as every time I've got a quote for something decent doing decent mileage it seems really expensive (still cheaper than if I had to do it privately, but loads more than I consider sane to spend on a normal-ish family car). Hope it works for you though.
The deal I’m chasing is on the Lotus Eletre. 1+35, based on 15k miles at a net salary sacrifice of £660. Not ‘peanuts’ by any stretch, but reasonable for the car with a P11D of circa £95-100k.
ARF8885 said:
The deal I’m chasing is on the Lotus Eletre. 1+35, based on 15k miles at a net salary sacrifice of £660. Not ‘peanuts’ by any stretch, but reasonable for the car with a P11D of circa £95-100k.
That sounds really good, I'd be sniffing around that like a hungry brown dog too. Maybe the provider I can go with has sharpened things up a bit since I last looked a while ago but there was nothing remotely as attractive as that on offer when I did. Gassing Station | Finance | Top of Page | What's New | My Stuff