Salary deferral Schemes
Discussion
I have only just heard of these schemes but I am struggling to find anything online that isn’t the information from a “provider”
Has anyone any working knowledge of these schemes for a normal company employee, not paying higher taxes, looking to lease a “normal car” 300-400 pcm for 15k+ miles per year, Is electric or hybrid the only way it pays ?
I’m not interested in company directors getting E-trons, Tesla’s or Porkers for half price when tax liabilities are taken into consideration.
Has anyone any working knowledge of these schemes for a normal company employee, not paying higher taxes, looking to lease a “normal car” 300-400 pcm for 15k+ miles per year, Is electric or hybrid the only way it pays ?
I’m not interested in company directors getting E-trons, Tesla’s or Porkers for half price when tax liabilities are taken into consideration.
The first question is does your company offer such a scheme?
If they do then for a basic rate tax payer the benefits are still there as not only do you make a tax saving but also national insurance.
Speaking for my own employer they do a scheme through Hitachi and the offering includes insurance and all maintenance. The pricing isn’t spectacular but seems to work out to similar monthlies to a PCP/PCH but without a deposit.
If they do then for a basic rate tax payer the benefits are still there as not only do you make a tax saving but also national insurance.
Speaking for my own employer they do a scheme through Hitachi and the offering includes insurance and all maintenance. The pricing isn’t spectacular but seems to work out to similar monthlies to a PCP/PCH but without a deposit.
I looked into one run by Tusker from my old employer.
Similar to above, my experience is at best they were a similar price to a normal PCP albeit with the added 'benefit' of being no deposit so it put me off that I wasn't the one benefiting from the tax deduction. I appreciate they need to make profit and no way have issue with that but Tusker's business model appeared to me to be aimed at attracting customers who'd be drawn to the zero deposit part of the deal rather than the passing on some of the tax benefits.
A similar technology benefit was being pushed which had the net monthlies of an iPhone amortise to the exact price of that very model iPhone so essentially gross it was much more expensive than an iPhone from a shop and the benefit provider were pocketing the tax deducted.
That being said, a close friend of mine has a deal with another provider on an E-Tron for about £300 per month inclusive of insurance and maintenance so perhaps mine was just a bit rubbish.
Similar to above, my experience is at best they were a similar price to a normal PCP albeit with the added 'benefit' of being no deposit so it put me off that I wasn't the one benefiting from the tax deduction. I appreciate they need to make profit and no way have issue with that but Tusker's business model appeared to me to be aimed at attracting customers who'd be drawn to the zero deposit part of the deal rather than the passing on some of the tax benefits.
A similar technology benefit was being pushed which had the net monthlies of an iPhone amortise to the exact price of that very model iPhone so essentially gross it was much more expensive than an iPhone from a shop and the benefit provider were pocketing the tax deducted.
That being said, a close friend of mine has a deal with another provider on an E-Tron for about £300 per month inclusive of insurance and maintenance so perhaps mine was just a bit rubbish.
blue al said:
I have only just heard of these schemes but I am struggling to find anything online that isn’t the information from a “provider”
Has anyone any working knowledge of these schemes for a normal company employee, not paying higher taxes, looking to lease a “normal car” 300-400 pcm for 15k+ miles per year, Is electric or hybrid the only way it pays ?
I’m not interested in company directors getting E-trons, Tesla’s or Porkers for half price when tax liabilities are taken into consideration.
My employer has started offering this, EV's only. The prices are very reasonable if you have it as salary sacrifice but it does tie you to your employer unless you want to pay significant penalties to end the lease (and the non-salary sacrifice prices are very high, especially if you are a 40% tax payer.)Has anyone any working knowledge of these schemes for a normal company employee, not paying higher taxes, looking to lease a “normal car” 300-400 pcm for 15k+ miles per year, Is electric or hybrid the only way it pays ?
I’m not interested in company directors getting E-trons, Tesla’s or Porkers for half price when tax liabilities are taken into consideration.
It’s for my wife, yes the rates only look attractive for electric, I guess as it’s a “captive market” they do not need to be that competitive, and without anything as a deposit upfront the depreciation has to be factored in by front loading short term rates.
I can see why it’s attractive with services etc built into the price if you’re looking at it more as a commodity and have not much interest in which car you get.
Oddly this one was also from tusker…mini Cooper at 400 pcm for 2 years
Was considering one as a “treading water deal”, because her car is due to end in March “e-pace” and no lease deals are that attractive at the moment.
I can see why it’s attractive with services etc built into the price if you’re looking at it more as a commodity and have not much interest in which car you get.
Oddly this one was also from tusker…mini Cooper at 400 pcm for 2 years
Was considering one as a “treading water deal”, because her car is due to end in March “e-pace” and no lease deals are that attractive at the moment.
Edited by blue al on Monday 1st November 15:16
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