Alternative ways to access BIK?
Discussion
Afternoon all,
I suspect I know the answer to this, but the launch of the Taycan Cross Turismo has made me Mamba Green with envy once again...
Clearly a huge driver of BEV adoption is the 1-2% Benefit-in-Kind rate. While self-employed people, and employees whose employer would offer a car using salary sacrifice, can benefit, there isn’t any way for a plain-vanilla employee to get a similar advantage, is there?
Thanks all - good weekend
TH
I suspect I know the answer to this, but the launch of the Taycan Cross Turismo has made me Mamba Green with envy once again...
Clearly a huge driver of BEV adoption is the 1-2% Benefit-in-Kind rate. While self-employed people, and employees whose employer would offer a car using salary sacrifice, can benefit, there isn’t any way for a plain-vanilla employee to get a similar advantage, is there?
Thanks all - good weekend
TH
Depending on the size of the business it might be worth asking about the option of salary sacrifice. We offer company cars to our managers but I’d not be averse to offering salary sacrifice on EV’s through the business if they wanted a 2nd car for example. I just wouldn’t offer it as it’s hassle for me if they ask as I’d have to sort it.
Heres Johnny said:
I guess that’s why so many nhs workers are doing it.
NHS employees taking salary sacrifice actually save the government ££££ in future pension costs and the trust ££££ in NI and employer pension costs. Our trust would love everyone to be taking up every single salary sacrifice option, its advertised all over the intranet with zero information on pension implications, its not been done out of care for employees.
Edited by gangzoom on Saturday 6th March 10:33
gangzoom said:
NHS employees taking salary sacrifice actually save the government ££££ in future pension costs and the trust ££££ in NI and employer pension costs.
Our trust would love everyone to be taking up every single salary sacrifice option, its advertised all over the intranet with zero information on pension implications, its not been done out of care for employees.
Not strictly true is it, individuals circumstances dictate tax potential liabilities respect to pensions, and the salary sacrifice benefits for the employer are the same irrespective of industry when it comes to NI and other savings, but irrespective it’s open to NHS employees and not just people with their own company or are executives. If you want to pick a fight with the gov over the pay offer do it in an appropriate thread. Our trust would love everyone to be taking up every single salary sacrifice option, its advertised all over the intranet with zero information on pension implications, its not been done out of care for employees.
Edited by gangzoom on Saturday 6th March 10:33
Heres Johnny said:
If you want to pick a fight with the gov over the pay offer do it in an appropriate thread.
Did I say that? But the NHS pension is probably the best of the NHS pay deals, and I have no fight to pick about that for anyone, if anything its far too generous, even now with career average payout the figures are simply crazy. Most of you guys clued up on tax and BIK are making fully informed decisions on pension implications of going for a 'cheap' EV deal, but that isn't true in NHS lease schemes. There is barely any mention of pension implications, and you can 'sign up' in a few mouse clicks with no discussion or information on the true cost of the deal over the life time your employment/pension pay out.
Edited by gangzoom on Saturday 6th March 12:52
k off to the politics thread?thr32 said:
While self-employed people, and employees whose employer would offer a car using salary sacrifice, can benefit, there isn’t any way for a plain-vanilla employee to get a similar advantage, is there?
Thanks all - good weekend
TH
Just a quick point for accuracy - self employed cannot benefit, unless they are self employed through their own company. Slightly oddly there is I think no benefit at all to self employed (ie, sole traders and partners) from an EV other than speed of depreciation allowance (capital allowance). Whereas through a company there is huge benefit Thanks all - good weekend
TH
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