Vehicle Salary Sacrifice

[AndyC_123]

Hi

Had a member of staff ask about having a car on a salary sacrifice scheme.

Anyone do this, any pros/cons I should be aware of?

Looks like she will basically pay for the car and 2% BIK if it's an electric?

Thanks

[LooneyTunes]

The actual cost is higher than just the lease payments on the vehicle.

Who is paying the insurance, maintenance, accounting costs associated with such an arrangement? What happens when these change?

More importantly, what happens if she leaves?

Firm I used to be involved with had several people wanting to do similar but the company being on the hook for vehicles if staff left was a problem.

Cutting back salary would normally have an impact on employers pension contributions too.

[MustangGT]

LooneyTunes said:

Cutting back salary would normally have an impact on employers pension contributions too.

Not usually on a SS scheme. The pension would be based on the pre-sacrifice salary.