Great Video. When I worked for a UK bank their Salary Sacrifice scheme was awful with prices so high most didn’t bother with it. Later I got told the bank were taking a massive cut of the money, no one was surprised.
Thanks for sharing. I’ve seen some bloody awful SS pricing too. I have a feeling that some agents or employers like to “wet their beaks” at times as even with the same provider the rates can vary wildly between employers.
I wasn’t planning to go EV, but when I got quotes for a new version of car I got via PCP in June 2020, it just wasn’t affordable. APR and insurance made it out of budget. I had a look at my employers sal sac scheme and could get the EV equivalent model with insurance, maintenance, tyres all included for the same as I’d paid back in 2020 when averaged out to a monthly figure. Like you say, the benefits will start to roll off over the coming years.
Great video. I’m straying over 100k earnings even after my salary sacrifice pension is taken into account and the salary sacrifice car lease seems like a no brainer. I’m going round in circles with it however. Usually things that look too good to be true… are and the impact on my pensionable earnings and cumulative pension effect seems like an unknown entity. Like you mention above it seems insane that I am considering getting a salary sacrifice to lease a 60/70/80k EV to reduce my earnings so that I’m then entitled to tax free and free childcare hours! This system is bonkers. For reference on our lease scheme at work. I can get a BMW i5 Touring M Sport Pro for £550 net take home pay reduction. Incredibly reasonable for an 85k car.
Don’t get me started, don’t forget 100k-123k is basically 60% tax as you lose your tax free allowance. Then people say big earners should pay their “fair share” - that’s a laugh!!! In my last year of traditional employment my income tax alone was £47k, they were charging me £900 per month tax on a D3 Volvo XC40 that I was doing 25k business miles in 😂
@@PhilAinsworth-qy4ns I hear what you are saying and I assume you are suggesting that earning over 100k means I don’t NEED help with childcare. However I just want to make two points. Firstly - people always exploit tax breaks/advantages when they can even the super rich so why shouldn’t I, regardless of how bizarre it seems. Secondly - if a couple both earned £99,999 a year they would still be entitled to tax free childcare and free childcare hours without having to do anything to exploit it. What needs to change is the childcare entitlement needs to be based on household income and not an individual income.
Since I made this a mate showed me his SS rates for the same thing from the same company and it was about 20-30% more expensive so I’m guessing the employer or an agency of some kind is taking a profit on some of these SS schemes to beware.
This has been a useful video Jim. I've been pushing people to ask about their works Sal sac schemes, but as you said there are a lot of benefits and possible pitfalls to consider.
nice video. something to add as I'm in the process of getting an EV via sal sac is that it also take you out of the child benefit tax charge threshold.
Im looking at getting a car this way, do you know if it affects my student finance. Im wondering if i would save that way as well, as i wouldn't be paying as much student finance back.
There’s an opportunity cost. You can reap the same tax benefits if you made pension contributions instead and your pension is more likely to be an accumulating asset, unlike a depreciating car.
Unless you die early. You still need a car too. I’m not in love with SS but some schemes are very attractive and a good way of running a hassle free car for those who want one.
The benefits of salary sacrifice as an employee - No credit check against the employee for the lease, no deposit, wear and tear (if included), insurance - EV insurance isn't cheap and it's fixed for the term regardless of claims, damage buffer (£500 for Octopus), free charger installed too - You have to do the calculations too.
@@shamsrubani9004 Hello, no he isn't, but just under that. It's a 2 year deal so he's called Tusker and they've added on another year. You can barely get a Nissan Leaf for that on there now.
I had the option of SS through work. On a RAV4 it worked out as £600/m all in (insurance up to 4 people, servicing, tyres, tax etc) Lease is £592/m (1month down & 6k) Obviously up front cost is better with SS, however I can only claim 10p per mile through work via SS. Meaning it wouldn’t be worth using the car for work. Lease I can claim 45p per mile (as it’s not a company car) so I can offset the cost of fuel and wear via that route. I’m also not likely to be hit hard with early repayment fees if I moved job. Don’t get me wrong. I chased the car, not the deal. (Don’t shoot me down Jim! 😂). I know there were some cracking deals with SS, especially their in stock ‘deals’.
I did have salary sacrifice which started in 2021, but when I was looking for a renewal this year I found that within our scheme the price of the cars had been pushed up, I was looking at a Skoda Enyaq but price was £730 per month on 10000 miles and 4 years, even a Nissan leaf was £360 on same mileage and term, neither of these stacked up when I looked at personal lease, I have switched one of the cars I had to an ORA on a personal lease, £137 per month, got mine in March, insurance and breakdown was £71 per month, the other car I had I have switched too a 3 year old ID4 from a vw Eup, finance works out at £30 more a month than extending the up but mileage see at 15000 miles per year than the e up, so my own experience has told me to move away from salary sacrifice due to inflated prices which wipe out any tax savings, but as was said it depends on the scheme available where you work but they had no competition on price so the deals now are not worth it
10k; irrelevant really as your work scheme could be twice the cost. You give the car back after 2/3 years so anything long term should not worry anyone as it’s not theirs 🤔
Is the salary sacrifice based on your gross earnings or basic salary? My basic salary is in the 20% bracket and my gross earnings are well into the 40% bracket with overtime/ bonus etc. cheers
It can be if you’re on the edge of it but you then risk getting a royal shafting if you get a small pay rise - remember if you go into 40% by 1p you’ll then pay 40% bik on the car. If you’re looking at full EV it won’t be as painful as on other cars
Model Y a bargain there. My companies car scheme wants £729pm. Do you still get to keep and build your no claims if you move onto one of these schemes?
Ouch! No, SS schemes are generally insured so unless you use your NCD elsewhere you’d lose it after 2 years, if you have a significant other you could just swap the policyholder on their car every 2 years 👍
@@DefinitelyNotAGuru sorry just wanted to understand that better. I am in a situation where my wife has NCD, I do not. Do we need 2 cars to keep the NCD basically if one is on SS through my work? And then we can swap every 2 years on the second vehicle so I build NCD for myself too? So 2 years she is main driver and then 2 years I am main driver etc.
Hey - do you know if you save an additional 9% on top of the tax savings for paying the 9% student finance repayments? For example, 40% tax earner, plus the 9% one pay towards their student loans, do you save the extra 9%, 49% in total?
Ive a salary sacrafice Omoda EV Nobel on order because only £380 a month. Too good of a price to turn down after I did the maths. One thing i never hear mentioned though is as its obviously all inclusive company insurance, you have to remember your no claims is generally only honoured for 2 years if you dont have your own policy. Something worth considering if you decide to go back to your own car as you could be facing massive insurance hike if no claims gone
Hi Jim, great content as always, much appreciated. Is my understanding correct in the following: If someone is earning i.e. £55k, that's about £5k getting taxed at 40%, which is about £2,000. With the salary sacrifice if the yearly cost is about £5k then that £2,000 that would have been taxed would be taken from that £5k yearly lease? making that lease cost about £3k for the year? Is my understanding correct or have I gone bonkers :). If its £3k per year then its a no brainer
Have you seen the NHS fleet solutions scheme? I’m looking at VW Tiguan EHybrid for £373pm. As a 20% tax payer. Which seems very reasonable to me for an all inclusive servicing, insurance tyres and tax. I’m currently paying that amount on a BMW which I own via a private loan. Plus all the stress and maintenance. Would you say that’s a fair price? I’m on the fence about committing to a 3 year deal
I don't know all the variables but seems good on the face of it. I've heard differeing opinions on the NHS salary sacrifice scheme, some good, some bad.
Hi I earn 55k yearly and my company has just introduced SS , this video has helped , what do u think my monthly range of payments would be generally on a GLC hybrid? I am trying to cover all base before committing to a 3 year deal
I've got a deal with NHS fleet solutions for a fully maintained and insured MG4 SE 51kwh, 3 years, 6k miles its £300 a month, no deposit, and a home charger. I'm a 20% tax payer. But do shop around some of the deals are more expensive than Leaseloco.
In the NHS you can actually save quite a lot if you move down a pension contribution band. A band5 on 33000 could save nearly £90 from this benefit alone.
I would have liked more calculations tbh to properly compare them if it was possible. Like lets say using the cheapest lease price with maintenance included and using average monthly insurance cost for that car etc.
Hi.. I got a deal in salary sacrifice for EQB 250+ premium plus for £476 each month. All included with insurance nd no upfront payment. 3 years 25k mileage. Is this. Good deal? I am pretty new to UK so no ifea on other dels. Please help me.
I would prefer to avoid this as I don't like leasing because you don't have flexibility and control. If I simply don't like the car or my personal circumstances change, I'd like to be able to get shot. But many other people would like it as they get a brand new car and don't have to do much. Regarding the end-of-lease charges - I've seen some horror stories. I think it varies with leasing company and individual. I've heard tell of people being told every stone chip is £250 after a forensic inspection of the (120k mile) car or that they fact that it wasn't dealer-serviced will hurt it (which the leasing company themselves had decided!) but I've personally not had any problems. Top Tip. Make sure it's clean, up-to-date on servicing and maintenance, the docs are all with it, both keys and that there's a reasonable amount of fuel in the tank (like 50-100 miles, at least). You want the person who collects/inspects it to be in a good mood :-)
A lot of the end of lease horror stories are from "back in the day" - it's a different world nowadays. £250 for each stone chip is an utter nonesense I'm afraid as is the servicing thing.
The real figures for sal sac are 32% and 42% for basic rate and higher rate taxpayer. There's still a fair difference between the deals, but it's not double once you take into account NI (which you should!)
My wife’s a teacher (Scotland), I’ve steered her clear of the EV scheme as I can’t be sure what the impact on her final pension would be if she sat in EV leasing for years on salary sacrifice. Do you know if it does impact? And what that impact might be? A lot of people could get quite a shock when they go to retire and realise the high performance EV they’ve been driving around in has hammered their defined benefit pension amount.
I can never make the figures work - if you did a video like you do on lease v cash v pcp with all the figures in, I bet most cars would struggle to make sense on salary sacrifice. The reducing tax bit just means your paying money to the lease company rather than to the government - you're not keeping it yourself.
Worth noting, you keep pointing out the 40 or 20% taxpayer - but a 20% taxpayer is most likely going to save 12% NI not 2%. The 2% is the saving on earnings over £45k. Up to that point, you pay 12%. So the 20% tax payer can save 32% on a salary sacrifice car!
@@jamesdaw131 hi mate. Would you be able to outline why it wasn't worth it? The brochure I read said the cost may be inflated because once you stop leasing, there were implications with the pension growth and how that would come out of post tax income. All very complex stuff.
@@brandonrodrigues7100 nothing to do with pensions for me. (I think what that is is that your employer pays a %age of your salary as pension. If you reduce your salary with salary sacrifices, they pay less pension. Most good companies wouldnt do that. They would do your pension at your core starry. Fore sacrifices.). For me the mark up that the starry sacrifice lease companies put on (note your work will be tied to 1 company - you can’t just go on lease loco and get the cheapest) is so high that even with a near 50% discount it was more than just going to lease loco and sorting out the insurance itself. Have to do the maths on the exact deals you are comparing
I had company cars between 2000 and 2016 before Sal sacrifice was a thing. Stopped then as BIK was too high, but I’ve been back in since 2022 with an EV. I pay under £400 with no deposit and it includes everything apart from electric - leasing, insurance, servicing, tyres, gap insurance (lifestyle protection), breakdown cover etc., pensionable salary not affected. As BIK is tiny it’s fantastic value. 40% tax payer. I will say though that Tesla’s are very expensive on our scheme due to insurance groupings. I’m sure BIK rates will keep rising though and it might not be worth it again in a few years when the government start taxing EV’s more.
The BIK rate is set to rise by an additional 1% each years from April 2025 to 2028 reducing the savings each year. That’s on the assumption that a new government in a few weeks time doesn’t see this as a way of clawing back some money.
✅ 𝗟𝗲𝗮𝘀𝗲𝗟𝗼𝗰𝗼 : leaselo.co/notaguru-car-leasing
📱 𝘾𝙖𝙡𝙡 𝙈𝙚 : www.notaguru.co.uk/book-a-call
Great Video. When I worked for a UK bank their Salary Sacrifice scheme was awful with prices so high most didn’t bother with it. Later I got told the bank were taking a massive cut of the money, no one was surprised.
Thanks for sharing. I’ve seen some bloody awful SS pricing too. I have a feeling that some agents or employers like to “wet their beaks” at times as even with the same provider the rates can vary wildly between employers.
I wasn’t planning to go EV, but when I got quotes for a new version of car I got via PCP in June 2020, it just wasn’t affordable. APR and insurance made it out of budget. I had a look at my employers sal sac scheme and could get the EV equivalent model with insurance, maintenance, tyres all included for the same as I’d paid back in 2020 when averaged out to a monthly figure. Like you say, the benefits will start to roll off over the coming years.
👍👍
Great video. I’m straying over 100k earnings even after my salary sacrifice pension is taken into account and the salary sacrifice car lease seems like a no brainer. I’m going round in circles with it however. Usually things that look too good to be true… are and the impact on my pensionable earnings and cumulative pension effect seems like an unknown entity.
Like you mention above it seems insane that I am considering getting a salary sacrifice to lease a 60/70/80k EV to reduce my earnings so that I’m then entitled to tax free and free childcare hours! This system is bonkers.
For reference on our lease scheme at work. I can get a BMW i5 Touring M Sport Pro for £550 net take home pay reduction. Incredibly reasonable for an 85k car.
Don’t get me started, don’t forget 100k-123k is basically 60% tax as you lose your tax free allowance. Then people say big earners should pay their “fair share” - that’s a laugh!!! In my last year of traditional employment my income tax alone was £47k, they were charging me £900 per month tax on a D3 Volvo XC40 that I was doing 25k business miles in 😂
@@PhilAinsworth-qy4ns
I hear what you are saying and I assume you are suggesting that earning over 100k means I don’t NEED help with childcare. However I just want to make two points. Firstly - people always exploit tax breaks/advantages when they can even the super rich so why shouldn’t I, regardless of how bizarre it seems. Secondly - if a couple both earned £99,999 a year they would still be entitled to tax free childcare and free childcare hours without having to do anything to exploit it. What needs to change is the childcare entitlement needs to be based on household income and not an individual income.
The fact it it includes fully comp could be a biggie given how much insurance has rocketed up last couple of years.
Since I made this a mate showed me his SS rates for the same thing from the same company and it was about 20-30% more expensive so I’m guessing the employer or an agency of some kind is taking a profit on some of these SS schemes to beware.
This has been a useful video Jim. I've been pushing people to ask about their works Sal sac schemes, but as you said there are a lot of benefits and possible pitfalls to consider.
Yes Marv, the actual provider and employer seems to make a huge difference. 👍
The more I sea about finance I realise the Mobility scheme is outstanding value for money great video jim
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Eye opener. Great useful video.
Glad it was helpful!
I’m on my 5th salary sacrifice car - 3x fuel cars from 2012 to 2020 and then 2x EV’s. Works for me 😊
👌
Best benefits come if the car takes you from the 40% bracket to the 20%.
Tax Savings on the car are then based on 40% while BIK is taken at 20%
Yep
nice video. something to add as I'm in the process of getting an EV via sal sac is that it also take you out of the child benefit tax charge threshold.
Oh yes, very nice!
@@briansanchez3898 do you mean by bringing your income to below 100k?
@@drrabie80 I think below £60k
Im looking at getting a car this way, do you know if it affects my student finance. Im wondering if i would save that way as well, as i wouldn't be paying as much student finance back.
No idea I’m afraid Laura, sorry!
Student payments are based on your gross pay so yes, you will pay less in student payments with Salary sacrifice.
👍👍👍. Thanks Jim
Thanks buddy
There’s an opportunity cost. You can reap the same tax benefits if you made pension contributions instead and your pension is more likely to be an accumulating asset, unlike a depreciating car.
Unless you die early. You still need a car too. I’m not in love with SS but some schemes are very attractive and a good way of running a hassle free car for those who want one.
The benefits of salary sacrifice as an employee - No credit check against the employee for the lease, no deposit, wear and tear (if included), insurance - EV insurance isn't cheap and it's fixed for the term regardless of claims, damage buffer (£500 for Octopus), free charger installed too - You have to do the calculations too.
Yes, pricing varies massively between employers / schemes.
In January my colleague managed to get a Merc 350 EQB for £360pcm on our Tusker scheme. Seems like a crazy good deal considering it's a £60k vehicle.
👌
@@Meatbrish wow, was he a 40% (£50k - £100k salary) or 45% tax payer?
@@shamsrubani9004 Hello, no he isn't, but just under that. It's a 2 year deal so he's called Tusker and they've added on another year. You can barely get a Nissan Leaf for that on there now.
I had the option of SS through work. On a RAV4 it worked out as £600/m all in (insurance up to 4 people, servicing, tyres, tax etc)
Lease is £592/m (1month down & 6k)
Obviously up front cost is better with SS, however I can only claim 10p per mile through work via SS. Meaning it wouldn’t be worth using the car for work.
Lease I can claim 45p per mile (as it’s not a company car) so I can offset the cost of fuel and wear via that route.
I’m also not likely to be hit hard with early repayment fees if I moved job.
Don’t get me wrong. I chased the car, not the deal. (Don’t shoot me down Jim! 😂).
I know there were some cracking deals with SS, especially their in stock ‘deals’.
I did have salary sacrifice which started in 2021, but when I was looking for a renewal this year I found that within our scheme the price of the cars had been pushed up, I was looking at a Skoda Enyaq but price was £730 per month on 10000 miles and 4 years, even a Nissan leaf was £360 on same mileage and term, neither of these stacked up when I looked at personal lease, I have switched one of the cars I had to an ORA on a personal lease, £137 per month, got mine in March, insurance and breakdown was £71 per month, the other car I had I have switched too a 3 year old ID4 from a vw Eup, finance works out at £30 more a month than extending the up but mileage see at 15000 miles per year than the e up, so my own experience has told me to move away from salary sacrifice due to inflated prices which wipe out any tax savings, but as was said it depends on the scheme available where you work but they had no competition on price so the deals now are not worth it
Often the case
RE: model Y, where did you get your salary sacrifice quote from and that where one is required to put 3 grand down ? I’m interested in both. 🙏
From a viewer; he’s got a very good work scheme. Yours may well not be.
What mileage were the deals on? That can impact the price quite heavily as people are worried about battery long term performance
10k; irrelevant really as your work scheme could be twice the cost. You give the car back after 2/3 years so anything long term should not worry anyone as it’s not theirs 🤔
Is the salary sacrifice based on your gross earnings or basic salary? My basic salary is in the 20% bracket and my gross earnings are well into the 40% bracket with overtime/ bonus etc. cheers
Gross I’m afraid
@@DefinitelyNotAGuru isn’t that a good thing to make more of a saving? Going back to your video 2 years ago. Cheers
It can be if you’re on the edge of it but you then risk getting a royal shafting if you get a small pay rise - remember if you go into 40% by 1p you’ll then pay 40% bik on the car. If you’re looking at full EV it won’t be as painful as on other cars
Model Y a bargain there. My companies car scheme wants £729pm.
Do you still get to keep and build your no claims if you move onto one of these schemes?
Ouch! No, SS schemes are generally insured so unless you use your NCD elsewhere you’d lose it after 2 years, if you have a significant other you could just swap the policyholder on their car every 2 years 👍
@@DefinitelyNotAGuru sorry just wanted to understand that better. I am in a situation where my wife has NCD, I do not. Do we need 2 cars to keep the NCD basically if one is on SS through my work? And then we can swap every 2 years on the second vehicle so I build NCD for myself too? So 2 years she is main driver and then 2 years I am main driver etc.
Hey - do you know if you save an additional 9% on top of the tax savings for paying the 9% student finance repayments?
For example, 40% tax earner, plus the 9% one pay towards their student loans, do you save the extra 9%, 49% in total?
I don’t
Ive a salary sacrafice Omoda EV Nobel on order because only £380 a month. Too good of a price to turn down after I did the maths.
One thing i never hear mentioned though is as its obviously all inclusive company insurance, you have to remember your no claims is generally only honoured for 2 years if you dont have your own policy. Something worth considering if you decide to go back to your own car as you could be facing massive insurance hike if no claims gone
You’ll usually get an intro bonus of roughly equivalent value with very little effort with a letter from employer or scheme provider.
Hi Jim, great content as always, much appreciated. Is my understanding correct in the following:
If someone is earning i.e. £55k, that's about £5k getting taxed at 40%, which is about £2,000. With the salary sacrifice if the yearly cost is about £5k then that £2,000 that would have been taxed would be taken from that £5k yearly lease? making that lease cost about £3k for the year?
Is my understanding correct or have I gone bonkers :).
If its £3k per year then its a no brainer
Urr...I'd say watch the video again. You need to add the BIK into the equation and you're not just saving the difference between 20-40%.
Have you seen the NHS fleet solutions scheme?
I’m looking at VW Tiguan EHybrid for £373pm. As a 20% tax payer. Which seems very reasonable to me for an all inclusive servicing, insurance tyres and tax.
I’m currently paying that amount on a BMW which I own via a private loan. Plus all the stress and maintenance.
Would you say that’s a fair price? I’m on the fence about committing to a 3 year deal
I don't know all the variables but seems good on the face of it. I've heard differeing opinions on the NHS salary sacrifice scheme, some good, some bad.
Hi I earn 55k yearly and my company has just introduced SS , this video has helped , what do u think my monthly range of payments would be generally on a GLC hybrid? I am trying to cover all base before committing to a 3 year deal
And our scheme is with Tuskegee also
I really couldn;t say Sid, there are lots of variables involved.
Problem is my company uses lex auto lease . A leaf is 500pm overpriced . So with tax off no where near leaseloco
Yeah, prices vary massively between employers, sometimes even with the same provider.
I've got a deal with NHS fleet solutions for a fully maintained and insured MG4 SE 51kwh, 3 years, 6k miles its £300 a month, no deposit, and a home charger. I'm a 20% tax payer. But do shop around some of the deals are more expensive than Leaseloco.
Yes 👍
In the NHS you can actually save quite a lot if you move down a pension contribution band. A band5 on 33000 could save nearly £90 from this benefit alone.
I would have liked more calculations tbh to properly compare them if it was possible. Like lets say using the cheapest lease price with maintenance included and using average monthly insurance cost for that car etc.
I’d like my hair to grow back
@@DefinitelyNotAGuru Then use finasteride, minoxidil, microneedling, RU, etc or wait some years for hair cloning hair transplants.
Doesn’t work for alopecia I’m afraid
@@DefinitelyNotAGuru Depends what type, androgenic alopecia it'll work for. The other kinds it won't.
Yes, I’ve had it 27 years so have become fairly expert
Hi.. I got a deal in salary sacrifice for EQB 250+ premium plus for £476 each month. All included with insurance nd no upfront payment. 3 years 25k mileage. Is this. Good deal? I am pretty new to UK so no ifea on other dels. Please help me.
Decent
@@DefinitelyNotAGuru thanks mate. Is there any good deal which I can take outside without salary sacrifice. I am finding hard to find deals on EQB
You’ll find the best deal when looking for the best deal you can get, not just focusing on the best deal on a specific car 👍
Hi, who is the leasing company for this? Tusker? Good deal...
@ Arval a BNP group company
Hi. NHS Fleetsolutions is really good. It's worth looking into. 👍
Someone showed me an ID3 deal on that a while ago and it wasn’t very good to be honest but I know others swear by it 👍
I would prefer to avoid this as I don't like leasing because you don't have flexibility and control. If I simply don't like the car or my personal circumstances change, I'd like to be able to get shot. But many other people would like it as they get a brand new car and don't have to do much.
Regarding the end-of-lease charges - I've seen some horror stories. I think it varies with leasing company and individual. I've heard tell of people being told every stone chip is £250 after a forensic inspection of the (120k mile) car or that they fact that it wasn't dealer-serviced will hurt it (which the leasing company themselves had decided!) but I've personally not had any problems. Top Tip. Make sure it's clean, up-to-date on servicing and maintenance, the docs are all with it, both keys and that there's a reasonable amount of fuel in the tank (like 50-100 miles, at least). You want the person who collects/inspects it to be in a good mood :-)
A lot of the end of lease horror stories are from "back in the day" - it's a different world nowadays. £250 for each stone chip is an utter nonesense I'm afraid as is the servicing thing.
The real figures for sal sac are 32% and 42% for basic rate and higher rate taxpayer. There's still a fair difference between the deals, but it's not double once you take into account NI (which you should!)
Ah yes
Since NI is now 8% is the basic rate not 28% these days rather than 32%?
My wife’s a teacher (Scotland), I’ve steered her clear of the EV scheme as I can’t be sure what the impact on her final pension would be if she sat in EV leasing for years on salary sacrifice. Do you know if it does impact? And what that impact might be? A lot of people could get quite a shock when they go to retire and realise the high performance EV they’ve been driving around in has hammered their defined benefit pension amount.
I would assume it's dependent on the employer/pension provider how they choose to interpret and/or action it.
Cheers Jim/ Also, if you change jobs. You have to buy the gross figure when you leave. Big consideration.
Some you do, some you don’t. You just give it back with the scheme in this video built your one could well be very different
What's BIK and it's effect on these schemes!?
Watch the video linked at the end of this one
Wife gets the MG4 6000 miles for 2 years at 250 per month includes insurance through salary sacrifice. Brilliant deal
👍 the renewal might not be so great but enjoy it while it lasts
@@DefinitelyNotAGuru why would that be? Is that not a risk with any lease scheme? And thanks for replying.
Sweet spot is 125K. Just took out a Model Y performance and Tesla couldn't match our SS scheme.
👌
I can never make the figures work - if you did a video like you do on lease v cash v pcp with all the figures in, I bet most cars would struggle to make sense on salary sacrifice. The reducing tax bit just means your paying money to the lease company rather than to the government - you're not keeping it yourself.
Some schemes / employers offer good deals, others seem to get their feet under the table and then crank up the rates.
Worth noting, you keep pointing out the 40 or 20% taxpayer - but a 20% taxpayer is most likely going to save 12% NI not 2%. The 2% is the saving on earnings over £45k. Up to that point, you pay 12%. So the 20% tax payer can save 32% on a salary sacrifice car!
Yes 👍
Anyone who has experience with knowles fleet scheme
🤔
@ I am a NHS employee. My trust is with knowles fleet SS. Wonder if anyone who has experience with them
Can my company make me.use the car for company business???
You'd have to ask them, I would assume so but you'd obviously be compensated if so.
These terms seem rubbish to me even as a higher rate taxpayer. This is just third party company, creaming off your tax for their own benefit.
Interesting
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👍👍👍👍
👍👍👍
😊
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My wife is a 45% tax payer. I’ve done the sums and it often isn’t worth it even at that ‘discount’. You really do have to do the maths.
Pricing varies massively between employers and schemes
@@jamesdaw131 hi mate. Would you be able to outline why it wasn't worth it? The brochure I read said the cost may be inflated because once you stop leasing, there were implications with the pension growth and how that would come out of post tax income. All very complex stuff.
@@brandonrodrigues7100 nothing to do with pensions for me. (I think what that is is that your employer pays a %age of your salary as pension. If you reduce your salary with salary sacrifices, they pay less pension. Most good companies wouldnt do that. They would do your pension at your core starry. Fore sacrifices.).
For me the mark up that the starry sacrifice lease companies put on (note your work will be tied to 1 company - you can’t just go on lease loco and get the cheapest) is so high that even with a near 50% discount it was more than just going to lease loco and sorting out the insurance itself. Have to do the maths on the exact deals you are comparing
I had company cars between 2000 and 2016 before Sal sacrifice was a thing. Stopped then as BIK was too high, but I’ve been back in since 2022 with an EV.
I pay under £400 with no deposit and it includes everything apart from electric - leasing, insurance, servicing, tyres, gap insurance (lifestyle protection), breakdown cover etc., pensionable salary not affected. As BIK is tiny it’s fantastic value. 40% tax payer.
I will say though that Tesla’s are very expensive on our scheme due to insurance groupings. I’m sure BIK rates will keep rising though and it might not be worth it again in a few years when the government start taxing EV’s more.
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The BIK rate is set to rise by an additional 1% each years from April 2025 to 2028 reducing the savings each year. That’s on the assumption that a new government in a few weeks time doesn’t see this as a way of clawing back some money.