Salary sacrifice car and petrol for SOA...?!

Justmark

I've currently got a salary sacrifice car from work (net deduction is £207pm which includes everything apart from petrol). Am I right in thinking this will simply be refused as part of BR in a few months time?

The reason I opted for a salary sacrifice car was I couldn't keep up with the old one failing and couldn't pull out the costs/MOTs etc when hit with a big bill. Having one fixed cost made things much easier. I use my car for work and transporting my son to his various activities.

I'm waiting for info from the car company re terminating early (only 10 of 36 months into agreement), there could possibly be £1000 early termination!! This would be taken out of my salary and would mean my rent etc would be defaulted. If I did have to do this, I think a £1k allowance can then be given to get another car, but what if I haven't got the funds to do this - is it just tough?

Petrol - I could spend £60 one month, £120 the next, probably averages £80pm... how much will this be checked into on the SOA? Are receipts expected to be provided for all petrol? Thanks for any advice

Justmark

Forgot to say, after the 36 months, the car would be returned to the employer therefore I will never own this and is not an asset. The car is effectively registered to my employer...

debtinfo

exactly what agreent do you have for the car, lease, HP loan etc etc, and is the agreement for the car between you and the finance company or between your employer and the finance company

Justmark

I suppose it's effectively a lease between me and the car company - my employer (local council) run it as a staff benefit. It's effectively handled through my payroll (salary deductions etc) and has 'benefit in kind' effects on my tax (not sure of the ins and outs but basically it reduced my tax code). This makes the lease cheaper than other private leases.

Thanks for any help - I did ask the CAB but they just said it would be looked at when the time comes...

debtinfo

basically the nuts and bolts of it then is that it is a lease car and as such unless it is required by your employment contract for work use then it is unlikely that the OR will allow the payments in the IPA calculation, although that is only my opinion and you wont know until that time.

Justmark

Thanks for the info. My car is used at work and mileage claimed, albeit very rarely, and I'm pretty sure my job doesn't detail car use as an essential... Guess I'll just have to see what happens further down the line.

Woody76

Hi

i recently went Br in April and I currently have a lease car (salary sacrafice) through work. My payment is for £260 monthly and covers everything bar diesel so same as yours. I put on sheet after taking advice that have use of car as not owned and explained on seperate sheet what it was. OR didnt even question it and allowed it in my soa. I was in same boat as you 2 years into a three year agreement would have cost me a hefty canx fee and really pleased OR accepted it. Just asked who owned car and whose name it was in so she could perform dvla checks and stated that was fine. due to my shifts very difficult to get to work without car but not essential for work.

So hopefully you should be fine.

Woody xx

Hopelessly_Hopeful

Justmark wrote: »

Thanks for the info. My car is used at work and mileage claimed, albeit very rarely, and I'm pretty sure my job doesn't detail car use as an essential... Guess I'll just have to see what happens further down the line.

Do you mind is I ask about what mileage rates you are able to claim? I have pals with traditional company lease cars that only get 15p per mile. I use my own and get 44p. am trying to see how it is treated with salary sacrifice shemes.

HHx

Justmark

I get 11p a mile as its just the petrol element. 45p for those who have wear and tear etc...

Got a quote from the car company, it would cost £1160 plus vat to terminate! There are contingencies but only for redundancies. Weird thing is a colleague handed his back and it cost him nothing, could it be that his asset price was that much better for resale etc.?

If they were to try and take the payment from my salary (which is a whole months pay!), could I do anything about it, eg stopping the salary deduction and treat the debt as part of my BR?

Hopelessly_Hopeful

Thanks for fuel info.

Sorry I cant help with your query. Is it worth calling debtline to ask for advice? Other people must have been in the same situation. Also is it worth asking company if there are any other options. Could be thats their first line answer but there are contigencies etc

Good luck

HHx

sort_me_own_yard_out

I think these schemes are fantastic, I work in the public sector but unfortunatly the MoD are one of the few public sector's that dont offer the scheme to their staff.

For the mileage MoD/Forces get 25p a mile this is for petrol and wear and tear.