Salary sacrifice leasing

[anonymous-user]

Cascade360 said:

Why is mine so expensive, and no Taycan as an option!?

No idea I’m afraid. The penalty for leaving the company and therefore the car is £250 + Vat.

When I spoke to Zenith last week they said that some employers have an upper limit on list prices (he mentioned £75k).

[anonymous-user]

SWoll said:

Harry Flashman said:

The thing is, our EV is an appliance, a town runabout rather than a fun car, and also the only car I have ever leased, as I like the idea of handing this tech back as it matures and newer versions come on stream.

So this would make sense to me if the deals are good but my Leaf is about 230 a month all in if I include service costs and insurance, so not much on Zenith that really grabs me.

The question is what would your Leaf cost today in comparison? The cost of the EV we leased in 2019 had increased dramatically when we came to look for a replacement recently. I don't imagine the Leaf will be as bad but I'd expect a decent jump in cost all the same?

NSS89 said:

Yeah I see that but I’m 20%. I’m not sure if I should wait and see if the Model 3 drops back down in price or just go for the Y. First time I’ve had access to a SS (Zenith) so no idea how often the prices change.

Are the costs both for the LR model as there's no SR+ available in the Model Y?

Edited by SWoll on Tuesday 23 November 08:00

I totally agree with Harry. We're in the market for an electric car so we test drove a leaf, I.D3 and 4 and an Audi e tron. The Audi was lovely but this car is purely about cheap motoring for us and when we tried to be pragmatic we couldn't justify paying more for a car we also don't like but which is nicer to be in. We've ordered a leaf on tusker's salary sacrifice, it'll cost £221 inclusive of insurance and maintenance which makes total sense for us even though it was our least favourite of the cars we test drove. It's become almost a white goods purchase for us.

[NSS89]

SWoll said:

Are the costs both for the LR model as there's no SR+ available in the Model Y?

Edited by SWoll on Tuesday 23 November 08:00

Yeah both LR.

The Model 3 SR+ I had seen for £420ish (20%) but that was a few months ago and now I can’t see the Model 3 on their website at all.

[SWoll]

sebdangerfield said:

I totally agree with Harry. We're in the market for an electric car so we test drove a leaf, I.D3 and 4 and an Audi e tron. The Audi was lovely but this car is purely about cheap motoring for us and when we tried to be pragmatic we couldn't justify paying more for a car we also don't like but which is nicer to be in. We've ordered a leaf on tusker's salary sacrifice, it'll cost £221 inclusive of insurance and maintenance which makes total sense for us even though it was our least favourite of the cars we test drove. It's become almost a white goods purchase for us.

Makes sense. We're in an eTron at the minute but expect to move to a much cheaper EV for the daily trudge (used BMW i3s) next year with something far more interesting and ICE engined for weekends and long leisure trips in addition.

[anonymous-user]

SWoll said:

sebdangerfield said:

I totally agree with Harry. We're in the market for an electric car so we test drove a leaf, I.D3 and 4 and an Audi e tron. The Audi was lovely but this car is purely about cheap motoring for us and when we tried to be pragmatic we couldn't justify paying more for a car we also don't like but which is nicer to be in. We've ordered a leaf on tusker's salary sacrifice, it'll cost £221 inclusive of insurance and maintenance which makes total sense for us even though it was our least favourite of the cars we test drove. It's become almost a white goods purchase for us.

Makes sense. We're in an eTron at the minute but expect to move to a much cheaper EV for the daily trudge (used BMW i3s) next year with something far more interesting and ICE engined for weekends and long leisure trips in addition.

My mate's got an eTron via a very cheap salary sacrifice scheme through his work sometime about 18 months ago. I'm sure his lease was comically cheap. It really is very nice. I just can't justify the current prices when its purpose is just to get me into the ULEV zone as cheaply as possible. The difference it saves me having a leaf instead of a Taycan or eTron means I can have a TVR or Westfield which I'll truly lust over. I wouldn't do that with an electric car, no matter how good it is. Funnily enough if it wasn't for the leaf being so cheap we were going to get an approved used i3.

[NSS89]

Does anyone know when your employer is calculating the salary sacrifice eligibility if they do this just based of your base salary or including additional payments such as car allowance?

I receive a monthly car allowance on top of my salary so just wondering if that will be taken into account or not.

[Heres Johnny]

NSS89 said:

Does anyone know when your employer is calculating the salary sacrifice eligibility if they do this just based of your base salary or including additional payments such as car allowance?

I receive a monthly car allowance on top of my salary so just wondering if that will be taken into account or not.

Salary sacrifice is no more than converting money you would have received as PAYE into a benefit. Your car allowance is just extra salary. The only reason these things are structured with names on elements is for things like pension and life assurance, otherwise a 50k salary and a 5k car benefit is the same as a 55k salary is the same as a 40k salary and a 15k flex fund you decide not to spend on benefits etc.

You have a car allowance - so why are you thinking salary sacrifice and not using your allowance anyway - an ev is a car after all?

As for what your employer takes into consideration, that’s down to each employer and how they have structured your contract of employment. There are no hard rules, there may be limits at the extremes but you’re unlikely to be near them

Edited by Heres Johnny on Thursday 2nd December 18:50

[anonymous-user]

Heres Johnny said:

NSS89 said:

Does anyone know when your employer is calculating the salary sacrifice eligibility if they do this just based of your base salary or including additional payments such as car allowance?

I receive a monthly car allowance on top of my salary so just wondering if that will be taken into account or not.

Salary sacrifice is no more than converting money you would have received as PAYE into a benefit. Your car allowance is just extra salary. The only reason these things are structured with names on elements is for things like pension and life assurance, otherwise a 50k salary and a 5k car benefit is the same as a 55k salary is the same as a 40k salary and a 15k flex fund you decide not to spend on benefits etc.

You have a car allowance - so why are you thinking salary sacrifice and not using your allowance anyway - an ev is a car after all?

As for what your employer takes into consideration, that’s down to each employer and how they have structured your contract of employment. There are no hard rules, there may be limits at the extremes but you’re unlikely to be near them

Edited by Heres Johnny on Thursday 2nd December 18:50

I have a car allowance but have just signed up for a salary sacrifice EV - the reason - I get access to an EV with no deposit, it’s maintained and insured and cheaper than I could obtain one privately. I also still get my car allowance. Win win IMO.

[Heres Johnny]

zj2016 said:

I have a car allowance but have just signed up for a salary sacrifice EV - the reason - I get access to an EV with no deposit, it’s maintained and insured and cheaper than I could obtain one privately. I also still get my car allowance. Win win IMO.

That’s a fundamental misunderstanding of what you’re doing then

A car through salary sacrifice is to all intents and purposes a company car. You’re not winning at all from what I can see. An example why

50k salary
10k car allowance
60k total

Take a car that costs 8k

Salary sacrifice means
42k salary
10k car allowance
52k total + car

Use car allowance
50k salary
2k left over of your car allowance
52k total + car

The only reason I can think m of as to why you’d want to reduce you reference salary is to bigger up your pension contributions and as anyone on the NHS scheme who’s looked I to it will tell you can land you with a tax bill.

Be interested if you’re aware of another reason?

[anonymous-user]

Heres Johnny said:

zj2016 said:

I have a car allowance but have just signed up for a salary sacrifice EV - the reason - I get access to an EV with no deposit, it’s maintained and insured and cheaper than I could obtain one privately. I also still get my car allowance. Win win IMO.

That’s a fundamental misunderstanding of what you’re doing then

A car through salary sacrifice is to all intents and purposes a company car. You’re not winning at all from what I can see. An example why

50k salary
10k car allowance
60k total

Take a car that costs 8k

Salary sacrifice means
42k salary
10k car allowance
52k total + car

Use car allowance
50k salary
2k left over of your car allowance
52k total + car

The only reason I can think m of as to why you’d want to reduce you reference salary is to bigger up your pension contributions and as anyone on the NHS scheme who’s looked I to it will tell you can land you with a tax bill.

Be interested if you’re aware of another reason?

I’ve just told you why I’m winning. The EV is cheaper than I can get privately and the only misunderstanding is yours.

With regards to NHS tax bills - not relevant. I’m non NHS and my pension is salary sacrifice so my SS EV has no impact on my pension arrangements.

Your example above doesn’t take into account the actual cost of a car. As you have said a car allowance is extra salary = correct and I don’t set my car budget based upon the allowance.

I had a Touareg on order on a personal lease at £550 a month on 3+35 10,000 miles pa.

I have now cancelled and signed up for a BMW i4 M50 for £600 a month net. Insured, maintained and no deposit. I also get 12,000 miles pa rather than 10k and it will cost peanuts to run compared to a Touareg. It also happens to have 544 bhp.

Tell me where else I could get a a £65,000 fully maintained and insured M50 for £600 a month net?

Answer = you can’t.

[Heres Johnny]

zj2016 said:

I’ve just told you why I’m winning. The EV is cheaper than I can get privately and the only misunderstanding is yours.

With regards to NHS tax bills - not relevant. I’m non NHS and my pension is salary sacrifice so my SS EV has no impact on my pension arrangements.

Your example above doesn’t take into account the actual cost of a car. As you have said a car allowance is extra salary = correct and I don’t set my car budget based upon the allowance.

I had a Touareg on order on a personal lease at £550 a month on 3+35 10,000 miles pa.

I have now cancelled and signed up for a BMW i4 M50 for £600 a month net. Insured, maintained and no deposit. I also get 12,000 miles pa rather than 10k and it will cost peanuts to run compared to a Touareg. It also happens to have 544 bhp.

Tell me where else I could get a a £65,000 fully maintained and insured M50 for £600 a month net?

Answer = you can’t.

The point I was responding to was you’re still getting your car allowance , and win win as if you you get the car and a car allowance - that makes no sense, where is the second win? You’re giving up a chunk of salary which to all intents and purposes is your company car allowance - why would it not be?

A company car does, that’s not at issue and the example I have given doesn’t make any reference to personally buying a car outside the company.

Edited by Heres Johnny on Thursday 2nd December 21:35

[NSS89]

zj2016 said:

I have a car allowance but have just signed up for a salary sacrifice EV - the reason - I get access to an EV with no deposit, it’s maintained and insured and cheaper than I could obtain one privately. I also still get my car allowance. Win win IMO.

Did they use your car allowance+base salary when calculating your eligibility or only your base salary?

[anonymous-user]

NSS89 said:

zj2016 said:

I have a car allowance but have just signed up for a salary sacrifice EV - the reason - I get access to an EV with no deposit, it’s maintained and insured and cheaper than I could obtain one privately. I also still get my car allowance. Win win IMO.

Did they use your car allowance+base salary when calculating your eligibility or only your base salary?

Our whole company are eligible, the only restriction is that you can’t take a car that will result in a salary after deduction of the car, which is less than minimum wage.

[anonymous-user]

Heres Johnny said:

zj2016 said:

I have a car allowance but have just signed up for a salary sacrifice EV - the reason - I get access to an EV with no deposit, it’s maintained and insured and cheaper than I could obtain one privately. I also still get my car allowance. Win win IMO.

That’s a fundamental misunderstanding of what you’re doing then

A car through salary sacrifice is to all intents and purposes a company car. You’re not winning at all from what I can see. An example why

50k salary
10k car allowance
60k total

Take a car that costs 8k

Salary sacrifice means
42k salary
10k car allowance
52k total + car

Use car allowance
50k salary
2k left over of your car allowance
52k total + car

The only reason I can think m of as to why you’d want to reduce you reference salary is to bigger up your pension contributions and as anyone on the NHS scheme who’s looked I to it will tell you can land you with a tax bill.

Be interested if you’re aware of another reason?

Would another reason be to be able to earn more without going into a higher tax bracket? Say if your income varies depending on overtime or commission. Or is my reasoning wrong?
Say you earned £41k basic, and £10k overtime you'd be £1000 into the 40% tax bracket. If you salary sacrifice a car at £6k, all your salary would be taxed at 20%.

[Heres Johnny]

sebdangerfield said:

Heres Johnny said:

zj2016 said:

I have a car allowance but have just signed up for a salary sacrifice EV - the reason - I get access to an EV with no deposit, it’s maintained and insured and cheaper than I could obtain one privately. I also still get my car allowance. Win win IMO.

That’s a fundamental misunderstanding of what you’re doing then

A car through salary sacrifice is to all intents and purposes a company car. You’re not winning at all from what I can see. An example why

50k salary
10k car allowance
60k total

Take a car that costs 8k

Salary sacrifice means
42k salary
10k car allowance
52k total + car

Use car allowance
50k salary
2k left over of your car allowance
52k total + car

The only reason I can think m of as to why you’d want to reduce you reference salary is to bigger up your pension contributions and as anyone on the NHS scheme who’s looked I to it will tell you can land you with a tax bill.

Be interested if you’re aware of another reason?

Would another reason be to be able to earn more without going into a higher tax bracket? Say if your income varies depending on overtime or commission. Or is my reasoning wrong?
Say you earned £41k basic, and £10k overtime you'd be £1000 into the 40% tax bracket. If you salary sacrifice a car at £6k, all your salary would be taxed at 20%.

That’s a potential reason for having the company car but it makes no difference to whether you’re mentally using your car allowance or sacrificing part of your salary because they’re no different, the tax man works on the total money stuck in your pay packet and has no concept of ‘company car allowance taken as salary”, to them it just looks like a bigger salary.

[oop north]

The point of a salary sacrifice car is to take a reduction in salary that is a lot bigger than the taxable benefit in kind of having the EV. Peak benefit was 2020-21 when EV bik was 0%. So zero tax liability on the but the salary sacrifice deduction saves tax and national insurance.

I wouldn’t want to sign up to one if it reduce my pension savings - and the maths gets extremely complicated in nhs pension scheme if you have a good chunk of service in the pre-2015 sections.

[skinnyman]

With the gov now lowering both the EV grant allowance, and the purchase price at which it applies to, most EVs are now considerably more expensive on our scheme. An iD3 Family Pro Performance is now £370/mth. Even the base level electric mini has gone up to £290/mth.

Guess I won't be getting an EV any time soon.

[PushedDover]

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

[Stevil]

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

Those look to be some really good prices there.

[PushedDover]

Or an ID4 ? £360pm


Model Y of ID4 ?