Good insight,hoping my company takes on salary sacrifice,but wouldn't want to do it if effected my pension. Defo would need to look into that. Hadnt even thought about that till your vid 👍.
One thing to bear in mind, student loans. If I take out a salary sacrifice my student loan goes from £250 per month (Loan 2 and Post grad) to £20 per month. That’s priced on a BMW I4 being £960 gross. Works out I pay £400 ish out my take home pay. 100% worth it in my eyes. Sold my 4 series and kept the full cash amount.
I really can’t as you need advice from the operator of your scheme from someone with expert knowledge of that specific scheme and it’s wider effects on things like your pension, redundancy entitlement etc.
@@drshafiqyusuff I don’t do pensions mate and it would be different for every company and scheme which is what makes it impossible. I can’t do something broad when every scheme with every employer and their SSS provider will work slightly differently.
We have a salary sacrifice scheme with Octopus which has just been released along with a standard company car list, and I’m really tempted by the SS scheme to get an EV, trouble is that up to now the company has given a taxable sum each month to cover employees getting there own car with no option for a company car, so the SS scheme would mean giving up some salary to in my case get a cheaper car, however I would also lose the monthly sum to provide my own car which I make money on, so for me I think it would be an EV on finance and take the uplift in the monthly sum for driving an EV
Great video! I was checking out the Arval car scheme offered by my company and I find it to be a good deal for someone like me who has just gotten a driving license. Instead of having to bear high insurance cost, this scheme covers all the costs and give peace of mind. I'd like to know your take on this and if I'm missing out on anything important if I decided to sign up for it. Thanks!
I’m looking into using the NHS Fleet Solutions when I pass my test (hopefully in January!), would you still recommend this as a first time driver? I’m 28 so not a traditional first time driver, but are they funny with you being a new driver and not charge more?
What are the implications of using salary sacrifice to buy a car (based on a 50k salary) but also having a side hustle that brings in around 25-30k gross?
@@DefinitelyNotAGuru Because my second income is just TH-cam, I stopped using an accountant a while back and just returned myself. Thanks for the video though. Need a new car and work keep pushing this scheme so will look more into it in the new year. 👍
@MisterTeach decent YT income! Reality is you should just be paying company car tax at the 40% rate. Much depends on how much the car scheme costs. You can book a call via my website if you want a chat once you have all the numbers on the car scheme.
I got a quote for a VW T-ROC for £440 on an SSS, and the breakdown was as follows: - £440 base cost of car pm - £140 BIK payment pm - Minus £140 tax breaks Does this essentially mean it is pointless to opt into the scheme, as I save no money at all due to this BIK payment?
Pretty much mate (although I do t know if you’re a 20% or 40% taxpayer - if you’re still on 20 then doing the SSS might mean you can get a big pay rise and still stay within 20% bracket)
Our company will be offering salary sacrifice with Zenith in the very near future. I'm curious to see how much we'll actually save compared to the personal lease prices on zenith. I take it from this video that it can vary quite a bit with bigger savings on more expensive cars?
@@DefinitelyNotAGuru As a direct comparison zenith personal to zenith SSS I'd expect it to be a proportional ratio as per the calculated tax savings but I'm sure there will be deals to be had on certain models. It also mentions that there is probably a 9 month lead time.
@@terryd8692 zenith SSS will cost a little more than you think as cost of running scheme is taken into account and of course you’re a captive audience. It should still give you a reasonable saving, especially if you’re on 40% tax.
My company also uses Zenith and I am getting much higher quotes than your examples here. The ID3 was £538 and a standard Tesla Model 3 £672 in the 40% tax range. After 36 months my gross salary payments would have paid 99% of the new cost of the Tesla and I would not own it. It seems like The leasing company is receiving a bigger benefit from this than I am.
It’s just not possible mate, if you want to see if it makes sense for you or not the. Do a comparison like I have here. Work out the costs of doing it privately vs the SSS then factor in any pros and cons for you.
Hi. I'm interested in leasing but I don't understand why insurance prices double when I put on my quote that the car is owned by leasing company. Everything else is the same but that. Is there a way I can solve this.
Neither do I, that seems most odd. The lease company is owner and registered keeper so it’s important that you record it that way. Have you just tried your existing insurer or have you checked the comparison sites too? Be careful changing information around on those sites by the way and multiple changes “quote manipulation” is seen as a red flag and some companies will increase prices or decline cover if they see you changing answers a lot and getting multiple quotes on the same car.
Question, If your Salary Sacrifice, takes you below the 40% tax bracket do you effectively go on to the 20% tax band? Then save less tax? then in turn making the your cost higher? Or does it not matter and its just set on your starting tax band when you take the deal? My options are with Arval and seem pretty good.
Hi mate. In my current circumstances (NHS quote). I've got a quote for Hyundai Ioniq 5 58kWh SE Connect Auto for £450/month for 24 months 5,000 miles / year with everything included: insurance, servicing, road tax, replacement tyres, roadside assistance incl Europe. I think it is a good deal but at the same time I find it too good to be true. I'm also thinking that this is an amazing deal for me as I am a newly passed UK driver and the insurance are so expensive. What you reckon? Thanks a lot for all your videos.
If your scheme is quoting that then it is exactly what it seems mate. Insurance costs are calculated on a scheme level rather than individual level so you’re benefiting from it. Just make sure you understand any pension implications. 👍
It’s good for those who have one employer some of us in the gig economy don’t have that luxury sadly so I’d like to see the government make this available to all including self employed through their tax coding via their tax return
completely unsatisfied with my purchase of an BMW ix3 thru Zenith. I ordered the pro version and got made to buy the premier version with reduced benefits of almost all the tech. Not sure why but i'm disgusted as many features i need are not in my version . Not sure if i can cancel this now that i received the car.!!
These all sound great until your company is moving you from a company car scheme to a SSS, especially if you have a hybrid/electric vehicle as a company car, same car will cost me nearly 200 quid more a month when I get moved to SSS at the end of the lease.😡
Good insight,hoping my company takes on salary sacrifice,but wouldn't want to do it if effected my pension. Defo would need to look into that. Hadnt even thought about that till your vid 👍.
I've got an updated one coming next week, there are still some good SS deals out there but some have certainly upped their pricing of late
Very helpful, thanks Jim, lots of food for thought 👍👍
👍👍👍
One thing to bear in mind, student loans. If I take out a salary sacrifice my student loan goes from £250 per month (Loan 2 and Post grad) to £20 per month. That’s priced on a BMW I4 being £960 gross. Works out I pay £400 ish out my take home pay. 100% worth it in my eyes. Sold my 4 series and kept the full cash amount.
Wow!!
Thank you, Could you make a video targeting NHS Salary Sacrifice car leasing
I really can’t as you need advice from the operator of your scheme from someone with expert knowledge of that specific scheme and it’s wider effects on things like your pension, redundancy entitlement etc.
Would you be able to interview a Pension expert ?
@@drshafiqyusuff I don’t do pensions mate and it would be different for every company and scheme which is what makes it impossible. I can’t do something broad when every scheme with every employer and their SSS provider will work slightly differently.
We have a salary sacrifice scheme with Octopus which has just been released along with a standard company car list, and I’m really tempted by the SS scheme to get an EV, trouble is that up to now the company has given a taxable sum each month to cover employees getting there own car with no option for a company car, so the SS scheme would mean giving up some salary to in my case get a cheaper car, however I would also lose the monthly sum to provide my own car which I make money on, so for me I think it would be an EV on finance and take the uplift in the monthly sum for driving an EV
The choice is yours, they’ll probably pay mileage at a much lower rate on an EV so you might not make much
Great video! I was checking out the Arval car scheme offered by my company and I find it to be a good deal for someone like me who has just gotten a driving license. Instead of having to bear high insurance cost, this scheme covers all the costs and give peace of mind. I'd like to know your take on this and if I'm missing out on anything important if I decided to sign up for it. Thanks!
I don’t know the full details of your scheme but in my view, if the price is right, there’s generally nothing not to like. 👍
I’m looking into using the NHS Fleet Solutions when I pass my test (hopefully in January!), would you still recommend this as a first time driver? I’m 28 so not a traditional first time driver, but are they funny with you being a new driver and not charge more?
What are the implications of using salary sacrifice to buy a car (based on a 50k salary) but also having a side hustle that brings in around 25-30k gross?
You’d need to do the sums yourself I’m afraid mate or check with your accountant. There are several variables.
@@DefinitelyNotAGuru Because my second income is just TH-cam, I stopped using an accountant a while back and just returned myself. Thanks for the video though. Need a new car and work keep pushing this scheme so will look more into it in the new year. 👍
@MisterTeach decent YT income! Reality is you should just be paying company car tax at the 40% rate. Much depends on how much the car scheme costs. You can book a call via my website if you want a chat once you have all the numbers on the car scheme.
Thank you for such an informative video and thanks Sajan lol
Thank you buddy
I got a quote for a VW T-ROC for £440 on an SSS, and the breakdown was as follows:
- £440 base cost of car pm
- £140 BIK payment pm
- Minus £140 tax breaks
Does this essentially mean it is pointless to opt into the scheme, as I save no money at all due to this BIK payment?
Pretty much mate (although I do t know if you’re a 20% or 40% taxpayer - if you’re still on 20 then doing the SSS might mean you can get a big pay rise and still stay within 20% bracket)
@@DefinitelyNotAGuru thought so. Am in the 20% unfortunately and not close to the 40% threshold as of yet as recently graduated.
@@theharknetts 👍
Our company will be offering salary sacrifice with Zenith in the very near future. I'm curious to see how much we'll actually save compared to the personal lease prices on zenith. I take it from this video that it can vary quite a bit with bigger savings on more expensive cars?
Look at my lease deals videos for private leasing rather than just Zenith. SSS savings are amplified if you’re a higher rate taxpayer.
@@DefinitelyNotAGuru As a direct comparison zenith personal to zenith SSS I'd expect it to be a proportional ratio as per the calculated tax savings but I'm sure there will be deals to be had on certain models. It also mentions that there is probably a 9 month lead time.
@@terryd8692 zenith SSS will cost a little more than you think as cost of running scheme is taken into account and of course you’re a captive audience. It should still give you a reasonable saving, especially if you’re on 40% tax.
My company also uses Zenith and I am getting much higher quotes than your examples here. The ID3 was £538 and a standard Tesla Model 3 £672 in the 40% tax range. After 36 months my gross salary payments would have paid 99% of the new cost of the Tesla and I would not own it. It seems like The leasing company is receiving a bigger benefit from this than I am.
Ouch!
My employer uses LEX for quotes in SSS an they seem to be expensive especially for hybrid models. Can you make a video comparing big lease furms.
It’s just not possible mate, if you want to see if it makes sense for you or not the. Do a comparison like I have here. Work out the costs of doing it privately vs the SSS then factor in any pros and cons for you.
@@DefinitelyNotAGuru Thank you
I assume its only full EVs that get a massive discount due to the 1 or 2% benefit in kind tax. Hybrid, petrol and diesel will be full whack.
Hi. I'm interested in leasing but I don't understand why insurance prices double when I put on my quote that the car is owned by leasing company. Everything else is the same but that. Is there a way I can solve this.
Neither do I, that seems most odd. The lease company is owner and registered keeper so it’s important that you record it that way. Have you just tried your existing insurer or have you checked the comparison sites too? Be careful changing information around on those sites by the way and multiple changes “quote manipulation” is seen as a red flag and some companies will increase prices or decline cover if they see you changing answers a lot and getting multiple quotes on the same car.
Great video, 👍 👌 👍
Thanks
Question, If your Salary Sacrifice, takes you below the 40% tax bracket do you effectively go on to the 20% tax band? Then save less tax? then in turn making the your cost higher?
Or does it not matter and its just set on your starting tax band when you take the deal?
My options are with Arval and seem pretty good.
Yes, exactly that.
Hi mate. In my current circumstances (NHS quote). I've got a quote for Hyundai Ioniq 5 58kWh SE Connect Auto for £450/month for 24 months 5,000 miles / year with everything included: insurance, servicing, road tax, replacement tyres, roadside assistance incl Europe.
I think it is a good deal but at the same time I find it too good to be true. I'm also thinking that this is an amazing deal for me as I am a newly passed UK driver and the insurance are so expensive. What you reckon? Thanks a lot for all your videos.
If your scheme is quoting that then it is exactly what it seems mate. Insurance costs are calculated on a scheme level rather than individual level so you’re benefiting from it. Just make sure you understand any pension implications. 👍
It’s good for those who have one employer some of us in the gig economy don’t have that luxury sadly so I’d like to see the government make this available to all including self employed through their tax coding via their tax return
completely unsatisfied with my purchase of an BMW ix3 thru Zenith. I ordered the pro version and got made to buy the premier version with reduced benefits of almost all the tech. Not sure why but i'm disgusted as many features i need are not in my version . Not sure if i can cancel this now that i received the car.!!
Ask the question, maybe you can hand it back?
These all sound great until your company is moving you from a company car scheme to a SSS, especially if you have a hybrid/electric vehicle as a company car, same car will cost me nearly 200 quid more a month when I get moved to SSS at the end of the lease.😡
Ouch 🤕
Such a great idea typically poorly thought out by this government should be available to all through your tax return
I certainly think your transport to and from work should be tax deductible (as you’re going there to generate tax)