Salary sacrifice leasing

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Discussion

SDK

895 posts

254 months

Friday 24th March 2023
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WORRALL. said:
Has anyone had a recent quote via a salary sacrifice provider for a BMW IX 40?

We havent signed up to a provider yet but instead have looked for business lease quotes for the IX 40 from BMW directly which are circa £820 exc vat which includes maintenance over 36 months with 10k miles and no initial deposit. If we were to salary sacrifice that then it works out at circa £550/month off the bottom of your pay check but doesnt cover insurance/charger. Interested to see how this compares to the all in one providers?
Yep - I ordered a BMW iX40 2 weeks ago via Tusker SS

£700 pm net for 40% tax payer

Includes the following
-> 36 months
-> 36k miles
-> Insurance, tax, maintenance, and tyres
-> £2.8k of options


Vanden Crash

769 posts

51 months

Friday 24th March 2023
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Percy. said:
No....net figure

40% tax payer
1200 quid for three years in a milk float. At least your on limited miles so your disappointment won’t be that great

theboss

6,919 posts

220 months

Friday 24th March 2023
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SWoll said:
Percy. said:
Just checked Octopus through our work SS scheme.

IX40 M Sport

10k Miles
36 Months
Includes insurance and maintenance
4000 'free miles'

Net: £1197
eek

I'm hoping that's the gross figure, but even if it is..
Mental isn't it. £2k gross to the lease company to provide a car that can be bought for £65k

Makes one want to buy a small fleet and lease them out.

Percy.

780 posts

75 months

Friday 24th March 2023
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I requested access to the SS scheme just to check the figures, I do have interest in going electric but only really for a Porsche Taycan or a Kia EV6 GT.

I do like to compare the Octopus prices to some in here and it doesn't look very good value going with the scheme available through our employer.

I'd expect that we would get a good price considering there is around 2,000 UK staff who have access to this scheme.

baconfries

19 posts

69 months

Tuesday 28th March 2023
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I've finally found what I think is a decent deal on salary sacrifice, but hoping for a sense check.

2024 Volvo XC40 twin engine Ultimate

2 years, 20k miles (only £14 per month more compared to three years and suits me better)

Everything included.

Gross is £911pm, about £420pm net as I've been making larger pension contributions which has dragged me back into that horrible marginal rate, would be about £570pm on regular 40% tax.

Considering the P11d is £62k, that seems like a decent deal?

SDK

895 posts

254 months

Tuesday 28th March 2023
quotequote all
baconfries said:
I've finally found what I think is a decent deal on salary sacrifice, but hoping for a sense check.

2024 Volvo XC40 twin engine Ultimate

2 years, 20k miles (only £14 per month more compared to three years and suits me better)

Everything included.

Gross is £911pm, about £420pm net as I've been making larger pension contributions which has dragged me back into that horrible marginal rate, would be about £570pm on regular 40% tax.

Considering the P11d is £62k, that seems like a decent deal?
It's the same price on our scheme. I also noticed last week the C40 was cheap too.

I have a Polestar 2 which is mostly the same car, based on the same platform, and it's been very good. The only downsides are rear legroom is limited for taller people and there is no rear wiper.

Sc0tchland

434 posts

82 months

Tuesday 28th March 2023
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Is this Tesla quote competitive? Model 3 standard RWD

  • Gross Salary Sacrifice (GSS) £894.54
  • Benefit in Kind (BIK)* £28.62
You save
  • Employee Tax saving on GSS -£357.82
  • Employee NI saving on GSS -£17.89
  • Total Monthly Cost - £547.4
Includes insurance, maintenance and servicing, 3 years, 10k a year.

Vanden Crash

769 posts

51 months

Tuesday 28th March 2023
quotequote all
Sc0tchland said:
Is this Tesla quote competitive? Model 3 standard RWD

  • Gross Salary Sacrifice (GSS) £894.54
  • Benefit in Kind (BIK)* £28.62
You save
  • Employee Tax saving on GSS -£357.82
  • Employee NI saving on GSS -£17.89
  • Total Monthly Cost - £547.4
Includes insurance, maintenance and servicing, 3 years, 10k a year.
What I was paying for a m3p

Sc0tchland

434 posts

82 months

Tuesday 28th March 2023
quotequote all
Vanden Crash said:
Sc0tchland said:
Is this Tesla quote competitive? Model 3 standard RWD

  • Gross Salary Sacrifice (GSS) £894.54
  • Benefit in Kind (BIK)* £28.62
You save
  • Employee Tax saving on GSS -£357.82
  • Employee NI saving on GSS -£17.89
  • Total Monthly Cost - £547.4
Includes insurance, maintenance and servicing, 3 years, 10k a year.
What I was paying for a m3p
I've found out that nevermind the lease company making a large markup on the car, our employer also isn't giving back the National Insurance savings. Unbelievable.

Percy.

780 posts

75 months

Tuesday 28th March 2023
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Sc0tchland said:
I've found out that nevermind the lease company making a large markup on the car, our employer also isn't giving back the National Insurance savings. Unbelievable.
How does one find out about whether or whether not your employer is giving back the NI savings?

z4RRSchris

11,322 posts

180 months

Tuesday 28th March 2023
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mine give back half of the saving, pocket the rest.

Vanden Crash

769 posts

51 months

Tuesday 28th March 2023
quotequote all
Scam

Sc0tchland

434 posts

82 months

Tuesday 28th March 2023
quotequote all
Percy. said:
How does one find out about whether or whether not your employer is giving back the NI savings?
You'd need to ask HR

PistonTim

514 posts

140 months

Wednesday 29th March 2023
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Theyve just launched a scheme at my work, I just dont see how it adds any value for for example over 48 months / 15,000 miles...

MG HS:

SS Provider - £718 gross and £537 net
MG Website - £456

Yes the SS includes insurance and maintenance but that just doesn't seem like its worth doing at all?

Vanden Crash

769 posts

51 months

Wednesday 29th March 2023
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If you hot your ni back it’s worth it but this has been abused so much it’s the next ppi claim waiting to happen

SpunkyGlory

2,322 posts

166 months

Wednesday 29th March 2023
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Question re the 60% effective tax bracket, how does this manifest itself in a quote? Is it still relevant if pension deductions reduce gross earnings to just below £100k?

CheesecakeRunner

3,822 posts

92 months

Wednesday 29th March 2023
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It doesn’t appear in quotes.

And if your pension contributions drop you below 100k taxable income it doesn’t matter anyway. If they don’t, then the gross value of the salary sacrifice is relevant as a deduction in calculating your taxable income.

SpunkyGlory

2,322 posts

166 months

Wednesday 29th March 2023
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CheesecakeRunner said:
It doesn’t appear in quotes.

And if your pension contributions drop you below 100k taxable income it doesn’t matter anyway. If they don’t, then the gross value of the salary sacrifice is relevant as a deduction in calculating your taxable income.
Thought that was the case, thanks for confirming.

AyBee

10,536 posts

203 months

Monday 3rd April 2023
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Having previously been disillusioned by MYLR quotes coming in far more expensive than they should have done with the lease-gouging, an email on Thursday which offered a MYRWD for £50/month less than usual (net) and with an additional 3,000 miles of supercharging (to go with the 4,000 miles I'd get anyway), I finally decided to pull the trigger. It'll be cheaper than the family wagon on the drive currently and I won't have to worry about any unexpected maintenance for the next 3 years which is nice. It's poverty spec, I couldn't even get it in not-white, but I'm looking forward to the change.

jimmy_wrxsti

202 posts

183 months

Monday 3rd April 2023
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Just wondering if anyone has been involved either in setting up a SS scheme at their work or has access to such info but I would be keen to see how other providers are charging for insurance as part of their schemes.

Ours is competitive, not amazing but competitive - we have access to a public sector framework and so often there is discounts on the car leases that our provider has access to.

Examples (10k mpa, 40% tax earner, no pension impact or saving)
Model 3 Performance - £650 p/m net
Model 3 RWD - £494 p/m net
Leaf Acenta 110kW - £302 p/m net

However as I was part of the setting up process and with access to the framework they use to get their cars (so i can check source pricing for car and maintenance, but not insurance, contingency or their fees) - I can delve into the details more.

As it currently stands we have a fleet policy insurance setup, which was sold to us as being better value and likely to be up to 10% of the leasing costs and is across the board, no driver details are captured as part of the quotes and there are set rules for insurance before an order is confirmed (they check points on license, age etc), but for quotes it's assumed you are within their requirements.

However I have found when checking specific examples after people were saying they thought it was expensive, that on some cars employees are being charged around 15% p/m of the total leasing cost of the car for insurance. For the Model 3 performance, this equates to £150 p/m on insurance and so £1,800 a year (£1,000 total car cost taken from salary). For me personally it would cost £500 a year to insure a new Model 3 Perf so I am querying this with the supplier. Higher end cars and quotes like Taycan's, are into £2k+ a year. When you reduce to a 2yr that cost jumps again as it percentage based.

Just looking to see how others compare as we may look to move back to an individual quote approach rather than a fleet policy to make it more attractive to employees.