Salary Sacrifice car scheme actual cost

TheSpinDoctor

Hi Guys,

I am a recent graduate and I have just passed my driving test. I am aged 23.

I have a graduate job with a salary of £30,000. The nature of work (sales) means there is a lot of driving required and it is implied a ‘nice’/’flash’ car is also required.

My employer offers a salary sacrifice car scheme. The ideal car I would like to have is an Audi Q3 quattro. However, I have been looking for a BMW 1 series too. I’m not really a fan of clutches so I am looking at Automatic cars, ideally with paddle shifters. The reason is I like cars and I would be looking to keep the car after three years, allowing me to move jobs etc. I would like to keep the car for approx. 6-8 years.

The above isn’t really relevant, but I have come to the conclusion that the salary sacrifice scheme is my best shot, considering insurance alone would be very expensive (My mums 7 year old 1.4L Mazda 3 would cost nearly £2000 for insurance.) I have no idea (yet) of my mileage, but I would assume 10,000+. For this purpose I am also assuming 0 business mileage.

As I will be living at home for the next 3 years, as well as paying off my student loan, mortgage/rent is not too much of a concern. Below are calculations based on an Audi Q3

WITHOUT the car AND student loan payments I should be taking home £23,217.76 by my calculations

WITHOUT the car but WITH student loan payments I should be taking home £21,990.76 by my calculations

I would like see if I have carried out my calculations correctly:
WITH the car but WITHOUT student loan payments does £15548.60 (£1295.70/monthly) sound correct? (Assuming payments of £750/month)

A very pessimistic estimate is the car would cost £20,000 to buy after three years, so I would be saving about about £560 a month, leaving £737 a month to live (like a well-off student) off. In reality I would be saving less (£400) as I have a fair chunk of change already saved up.

I would just like someone to verify my calculations are correct, below are some figures I have used in my calculations.

Audi Q3 SUV quattro 5Dr 2.0TDi 140 - P11d value: £30,620.00
Gross costs before savings: £856.39
Less income tax savings:-£171.28
Less employee NI savings:-£102.77
Plus Benefit-in-kind tax:+£134.39
================
Total Net cost per month: £716.73
Total Tax Savings: £139.66
Length of agreement:36 months

BMW figures FYI

BMW 1 Series 118 Hatch 5Dr 2.0d - P11d value: £30,090.00
Gross costs before savings: £794.18
Less income tax savings:-£158.84
Less employee NI savings:-£95.30
Plus Benefit-in-kind tax:+£96.96
================
Total Net cost per month: £637.00
Total Tax Savings: £157.18
Length of agreement:36 months

enabledebra

This is the wrong forum- you need the 'cutting tax' forum.

Caz3121

you would be better posting this on the Cutting Tax board (this one relates to benefits)

FBaby

You would much better off getting a cheaper car and savings hard to put towards a house deposit. You'll have all the time of your life to enjoy fast flashy cars, you won't to save and get on the ladder.