Salary sacrifice leasing

[GaryG182]

New to this and apologies I’ve not had chance to have a read through the thread but any ideas why the NI and BIK vary on these two “like for like” quotes


I know the gross varies and that will affect the numbers but it seems quite a way off. Also, annoying how the gross is different, is this providers adding margin?

[Cupid-stunt]

GaryG182 said:

New to this and apologies I’ve not had chance to have a read through the thread but any ideas why the NI and BIK vary on these two “like for like” quotes


I know the gross varies and that will affect the numbers but it seems quite a way off. Also, annoying how the gross is different, is this providers adding margin?

GaryG182 said:

New to this and apologies I’ve not had chance to have a read through the thread but any ideas why the NI and BIK vary on these two “like for like” quotes


I know the gross varies and that will affect the numbers but it seems quite a way off. Also, annoying how the gross is different, is this providers adding margin?

one of them is definitely incorrect.

To calculate BIK -
Multiply the P11D value by the BIK percentage banding (2% then increasing to 3% in 2025, 4% in 2026, then multiply that figure by your tax band (40%?)
This will give you your annual tax.
Divide by 12 to get your monthly cost.


The gross will be different as there is maintenance and Insurance to consider, which will no doubt vary dependent on the companies negotiating capability.

[AyBee]

Anybody dealt with how salary sacrifice affects adjusted net income for tax free childcare purposes? Trying to work out my FY24 position but it seems to be that you deduct the gross salary sacrificed to the car but then add back something to do with the P11D value of the car?

[JustinCredible]

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

[dirtbiker]

AyBee said:

Has Anybody dealt with how salary sacrifice affects adjusted net income for tax-free childcare purposes? Trying to work out my FY24 position but it seems to be that you deduct the gross salary sacrificed to the car but then add back something to do with the P11D value of the car.

I've got a meeting with my IFA next week to confirm this but am working based on deducting the gross cost monthly and then adding on the Benefit in Kind (BIK) charge on the car, which is determined by the P11D and CO2 emission levels of the vehicle.

Weirdly what Tusker quoted me for that on my Megane E-Tech (+£27 a month) doesn't tally with what's on my payslip but I'm planning to ensure that my pension contribution takes me well under the £100k mark to avoid any potential issues with the tax-free childcare - especially as we currently have two kids in nursery!

[Tractor Driver]

A quick favour, if I may:

Can somebody give me an idea of how competitive the Renault Megane E-Tech is on your salary sacrifice scheme?

I know that all schemes will vary, but just looking for an idea of whether it seems cheap, expensive or on a par with the likes of the Kona EV, Niro EV, Cupra Born etc.

Many thanks!

[JustinCredible]

Tractor Driver said:

A quick favour, if I may:

Can somebody give me an idea of how competitive the Renault Megane E-Tech is on your salary sacrifice scheme?

I know that all schemes will vary, but just looking for an idea of whether it seems cheap, expensive or on a par with the likes of the Kona EV, Niro EV, Cupra Born etc.

Many thanks!

Picked the cheapest / lowest spec model and increased to 10k miles p/a

Hyundai Kona Electric - £347
Kia Niro EV - £404
CUPRA Born - £428

(all net values as higher tax payer)

Edited by JustinCredible on Thursday 1st February 20:48

Edited by JustinCredible on Thursday 1st February 20:49

[phpe]

Tractor Driver said:

A quick favour, if I may:

Can somebody give me an idea of how competitive the Renault Megane E-Tech is on your salary sacrifice scheme?

I know that all schemes will vary, but just looking for an idea of whether it seems cheap, expensive or on a par with the likes of the Kona EV, Niro EV, Cupra Born etc.

Many thanks!

Base model Megane E-Tech with metallic, 3 years, 10k miles with Tusker shows £458

A Cupra Born V2 Edition 58kWh in metallic/no other options shows £451

[Tractor Driver]

Many thanks JustinCredible and phpe. Much obliged.

Is the Scenic E-Tech on there too? Cheers.

[phpe]

Doesn't show on (my) Tusker - only Renault shown is the Megane.

[JustinCredible]

No Scenic but there is a Renault ZOE

[Tractor Driver]

Appreciate you both checking. Thank you.

[snorkel sucker]

As this is Pistonheads, thought it worth mentioning that Tusker have finally got around to listing the Hyundai Ioniq 5 N.

For me, its coming out at £740 net over 48months and 10k miles. Comparable price to a Model Y Performance, but over £100 more than a Kia EV6 GT.

[riskyj]

Cupid-stunt said:

one of them is definitely incorrect.

To calculate BIK -
Multiply the P11D value by the BIK percentage banding (2% then increasing to 3% in 2025, 4% in 2026, then multiply that figure by your tax band (40%?)
This will give you your annual tax.
Divide by 12 to get your monthly cost.


The gross will be different as there is maintenance and Insurance to consider, which will no doubt vary dependent on the companies negotiating capability.

Is one showing the monthly bik ‘liability’ and the other the actual expected BIK payable? I had a similar query with my provider when BIK showed up on my payslip at about £120/month to which I was told “that’s the amount that tax is due on, not the actual amount being deducted” if that makes sense. Apologies for not using the proper terminology.

I think providers are intentionally vague with a lot of this to try and hide how much margin they’re making.

[pti]

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

Interesting to compare against our Octopus scheme (ours doesn't include insurance):

[PistonTim]

Tractor Driver said:

Many thanks JustinCredible and phpe. Much obliged.

Is the Scenic E-Tech on there too? Cheers.

It's the same platform as the Nissan Ariya.

[AyBee]

dirtbiker said:

AyBee said:

Has Anybody dealt with how salary sacrifice affects adjusted net income for tax-free childcare purposes? Trying to work out my FY24 position but it seems to be that you deduct the gross salary sacrificed to the car but then add back something to do with the P11D value of the car.

I've got a meeting with my IFA next week to confirm this but am working based on deducting the gross cost monthly and then adding on the Benefit in Kind (BIK) charge on the car, which is determined by the P11D and CO2 emission levels of the vehicle.

Weirdly what Tusker quoted me for that on my Megane E-Tech (+£27 a month) doesn't tally with what's on my payslip but I'm planning to ensure that my pension contribution takes me well under the £100k mark to avoid any potential issues with the tax-free childcare - especially as we currently have two kids in nursery!

Thanks - that's where my head is too. The BIK charge seems to be £836 for my TeslaY which is just over a month's gross sacrifice so not too bad.

[Browter]

Just started looking into this so apologies if this has been answered before. I was looking at our work salary sacrifice scheme through Octopus EV and our company expense policy today. I was thinking I could get an EV through the scheme and with the included insurance, charger, servicing tyres etc along with the 45p mileage allowance for work travel (which covers all my commuting) it would make it fairly cost effective. Our expense policy says if you take an EV through the scheme you claim back a different mileage amount and points to a government site which states 9p a mile. Is this standard?

[Zigster]

Browter said:

Just started looking into this so apologies if this has been answered before. I was looking at our work salary sacrifice scheme through Octopus EV and our company expense policy today. I was thinking I could get an EV through the scheme and with the included insurance, charger, servicing tyres etc along with the 45p mileage allowance for work travel (which covers all my commuting) it would make it fairly cost effective. Our expense policy says if you take an EV through the scheme you claim back a different mileage amount and points to a government site which states 9p a mile. Is this standard?

I suspect that’s to do with it being (in effect) a “company car” as well as an EV.
https://www.gov.uk/guidance/advisory-fuel-rates

My employer pays everyone 45ppm regardless of vehicle used, but few of us do any significant company mileage for it to be an issue. I remember a previous employer restructuring our pay to include a “benefits allowance” which then allowed them to claim we had company cars (we didn’t) and reduce our mileage allowance from 45ppm to 15ppm.

[JustinCredible]

pti said:

Interesting to compare against our Octopus scheme (ours doesn't include insurance):

Also depends on your salary - if you're in the 45% tax bracket then that could explain why your quote is a fair bit lower