Salary sacrifice leasing

[jimmy_wrxsti]

PushedDover said:

I have to say despite the seemingly good rates I've been offered - and now signed up to on the Tesla Y, the Octopus EV team are not spectacular in service.

The sales chap I spoke to (as the powerfully built company guinea pig from our Co) was great in walking me through options and the pricing, but since signing (20/12/21), and despite mailing etc, the Operations Team as he called the dept that takes it forward after sales, they have been absent and frustrating.

I am wanting some direction in the delivery dates so I can arrange cars at my end / selling etc, we need the info on the charger installation location & practicalities of installation and tariffs / account for Octopus Energy.

Maybe I am OCD / eager, but we are expecting delivery in 30 days and nothing has been sent or shared with us on any of the above.
If a standard ICE was being ordered perhaps I'd be less bothered, but such is the nature of the future of cars, specifically BEV's, and the intrinsic nature of the infrastructure required the move to EV is difficult to start with. Octopus' offer is to manage and make this easy. But so far. Nothing suggests how.

I have emailed and tried calling - but silence.

Hopefully it is the Christmas/NY period and closures affecting this for you. Let us know though as I met with them today about setting it up for my company. They were very helpful and knowledgeable, I am just comparing details with other providers at the moment which is interesting to see the subtle differences in the salary sacrifice approach.

[JAMSXR]

Tusker were exactly the same until I canceled my Model Y order. Based on my experience, poor after sales care is mandatory within the automotive industry.

To be fair to Octopus, they probably have very little information from Tesla to give you the detail you’re after.

[PushedDover]

JAMSXR said:

To be fair to Octopus, they probably have very little information from Tesla to give you the detail you’re after.

Its not the Tesla info I am wanting. We've done all the YouTubing we can - its the infrastructure support aspect - the home fit of the free charger, the tarriffs etc - ironically the 'Octopus' aspect.

[JAMSXR]

Ah fair enough! Slightly gutted I’m no longer getting a Model Y. Enjoy.

[roltyid]

Heard yesterday that my company will be introducing an SS scheme this year. Hadn't considered an EV, but with the low BIK and a 40% tax rate, it's looking like an attractive proposition to get the wife into a new car. Coupled with the fact that WBAC are quoting only £150 less than we paid for wife's car 18 months ago it could make sense.

No idea who who the scheme is with so will need to run the figures, but a VW ID.3 looks to meet the requirements at a glance.

[PushedDover]

Word of caution on OctopusEV, the story is starting to unravel a little.

I started talking Mid-December to them. I was found the Tesla Y that fitted us in their 'stock' or 'allocation', and told February delivery. This was intrinsic to the deal, as it fits 'our' plans the year ahead and persuaded me to look away from the long lead Taycan CT.

Octopus sent the documents sent to me 20th December, I signed, our CFO signed and received confirmation:
"Good news! All parties have successfully signed your documents"

I've heard very little from them since and have been chasing - mainly because of the infrastructure needed for a BEV / Tariffs / Accounts etc. Also to ready the car to sell on.

just finally received from Octopus this morning:

"
Thanks for your email. I'm sorry no one has been in touch. I can see we have a vehicle reserved for you but we are yet to receive a signed & HR approved driver agreement from yourself and yourCo. I have left XXXX in copy for this email so he can look up the status of your driver agreement and pass it to the Customer Operations team once completed.

Currently Model Y lead times are now looking to be fulfilled between March and June as the earliest vehicles have now sold out. A charger install lead time is around 12-16 weeks once your order to Octopus Energy Services has been submitted."

Careful what you are promised......

[Evanivitch]

PushedDover said:

Currently Model Y lead times are now looking to be fulfilled between March and June as the earliest vehicles have now sold out. A charger install lead time is around 12-16 weeks once your order to Octopus Energy Services has been submitted."

Careful what you are promised......

That sounds like your side of the application hasn't been processed quick enough.

[SWoll]

Waited 6 months+ for our Model 3 to turn up despite multiple promises from our provider. Gettng hold of Tesla's seems to be a bit of a crap shoot TBH as they appear to just build a load of cars, ship them, and hope they meet an allocation at the other end. Not convinced "factory order" means much in Tesla world due to the very short options list.

[PushedDover]

Evanivitch said:

That sounds like your side of the application hasn't been processed quick enough.

I / we / CFO received the docs, and returned them all signed same day 20th December.

[Stu-nph26]

With these schemes what happens is you leave the company during the contract?

[SWoll]

Stu-nph26 said:

With these schemes what happens is you leave the company during the contract?

Depends on the company and agreement. I've seen a few that have been very punitive, especially in the first 12 months. Others seem to not really care, there is usually insurance against early termination included in the price.

[jimmy_wrxsti]

Stu-nph26 said:

With these schemes what happens is you leave the company during the contract?

As I am right in the middle of this and shortly producing a tender to appoint a supplier, I can provide some info based on my findings.

Each supplier has slightly different early termination cover included, min terms (3/6/12 months) before cover for example, but most though will cover the same things (resignation, redundancy, dismissal, death, loss of license due to medical, parental leave, long-term sickness). There are exclusions (suicide is one, loss of license not due to medical grounds etc) and also employers can have custom driver agreements (between employee and employer) which may specify the employee is responsible for any ET fees if they resign no matter what the time period - even if the employer has ET cover in place. These tend to be 50% of the remaining lease contract payments.

But with a salary sacrifice one big risk mitigation is it is apparently simple to transfer a lease from one employee to another as the agreement is with the employer and the leasing company not the individual. Some will also offer to work with the employee to move the scheme to the new employment or look at buy-out options.

[UrbanAchiever]

Stu-nph26 said:

PushedDover said:

Just been looking at options -

Latest / Octopus salary sacrifice- Model Y available in February, White external, black interior - £377 salary sacrifice.
Playing the colours of outside and inside I can also get in Feb Red / White. Blue / White, or Black / Black.
moves the monthly by circa £30

Also on the radar has been
Skoda Enyaq iV 80 Suite
77kWh RWD
260 mile range
£315

Skoda ENYAQ iV 80x Sportline AWD
77kWh AWD
250 mile rang
£360

Audi e-tron Technik 55 quattro
86.5kWh AWD
225 mile range
£460

Porsche Taycan 4S Cross Turismo
84kWh AWD
250 mile range
£559

How on earth did you get these prices? My employer is looking to sign up to Octopus but looking on the website the Taycan 4s is over £800. I’m a 40% tax payer I’d have a Taycan for that price.

I suspect those prices are derived from the fact that the OP must be earning over £100k, but less than £125k (on an adjusted net income basis). The personal tax free allowance of c.£12,500 reduces by £1 for every £2 of adjusted net income over £100k. This gives an effective marginal tax rate of 60%, hence why the tax savings are so great, and the net monthlies are so much lower. Anyone in this earnings bracket will benefit massively from salary sacrifice.

[PushedDover]

Correct, and confirmation today of a Tesla Y delivery 15th Feb

[jimmy_wrxsti]

Also not to get too into details but it will also depend on the employer and whether they are willing to put NI contribution savings and claimed VAT back into the scheme to reduce monthly net salary costs for employees, as well as age and post code for the insurance element built in!

[Stu-nph26]

Has anyone heard of these guys they seem so much cheaper than Octopus who my company was going to go with?

https://www.electriccarscheme.com/

[jimmy_wrxsti]

Stu-nph26 said:

Has anyone heard of these guys they seem so much cheaper than Octopus who my company was going to go with?

https://www.electriccarscheme.com/

Yes, these are one of the ones I have engaged with for ours - when we discussed with them, they confirmed the online costs assume VAT is claimed back and saving passed onto employees (which we can't do). You also need to add in insurance and maintenance options to the initial costs given online. So whilst it seemed cheap, it wasn't actually in comparison.

The other thing is they front load payments so first 6 months are higher than remaining term, also they do charge a fee but it is based on the NI savings the institution makes - so cost-neutral but no NI savings.

[Stu-nph26]

jimmy_wrxsti said:

Yes, these are one of the ones I have engaged with for ours - when we discussed with them, they confirmed the online costs assume VAT is claimed back and saving passed onto employees (which we can't do). You also need to add in insurance and maintenance options to the initial costs given online. So whilst it seemed cheap, it wasn't actually in comparison.

The other thing is they front load payments so first 6 months are higher than remaining term, also they do charge a fee but it is based on the NI savings the institution makes - so cost-neutral but no NI savings.

Ah I thought it was too good to be true. Why can you not claim the VAT back out of interest?

[jimmy_wrxsti]

Stu-nph26 said:

Ah I thought it was too good to be true. Why can you not claim the VAT back out of interest?

Basically as a public sector organisation we don't claim back VAT - it's more complicated than that but that's the summary!

[james-85tzl]

jason61c said:

As an overview does this sound right....

Earnings upto 50k, 20% saving
Earnings upto 100k 40% saving
Earnings 100-120k 63% saving(given the effective tax rate
earnings 130-150 47%(effective rate)

you can still contribute upto 40k pa into pensions etc also?

Given you do not get a Personal Allowance on taxable income over 125,140, effectively, if you put 40k into a pension, salary sacrifice doesn't make as much sense over 165,140?

Resurrecting this from the dead. Anyone know what happens in a scenario where your basic salary is say £80k but then you get a bonus of £40k on top at the end of the year, taking annual earnings to £120k.

Do you get the 40% discount for 11 months and then 63% for 1 month? Or can you claim back at all via hmrc so that it equates to the full 63% discount over the 12 months?