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NHS Salary Sacrifice Scheme

Hi.
I don't know if I am able to ask for advice as I'm new to forums.
I work for the NHS and my Trust do salary sacrifice scheme for Car lease. I have been considering doing this scheme for some time. This would be my first car hense first car insurance. I know the scheme includes insurance, tax, maintenance etc etc but I was wondering if there was anybody who does this scheme and if they would be willing to tell me what they think and if it is worth doing. I know NIC, Tax & Pensions are effected and reduced to help.
Do you have to get any other insurance outside the scheme as the lease is done as a company lease, are you able to use the car for personal usage??
What are the advantages and disadvantages of the scheme.
Basically the scheme seems to good to be true and this seems to be the only option for me to be able to get a car with insurance included as I know my insurance would be very high.

Can anyone advise me.

Comments

  • hgotsparkle
    hgotsparkle Posts: 1,282 Forumite
    I don't know about going through NHS but I know that alot of lease offers with free insurance require you to have over 3 yrs NCD.
  • rustyboy21
    rustyboy21 Posts: 2,565 Forumite
    Would the car be supplied by the NHS as part of your job? If so, if you are able to use it for personal use and just pay them back the mileage at say 16p a mile ( them funding the fuel) then you are open to the Benefit in Kind of the vehicle as well as the fuel charge, which may be an eye opener to you ! lol. The BIK is dependant on the vehicle you choose, the Hybrids work out about 10% BIK, a Passat 2.0 tdi works out at 19% this year.
    If it is a discounted lease car scheme, in which the lease is taken out purely by you and the NHS do not fund it in anyway, then this tax may not be involved. I don't know how the tax situation would be, if you are paying for all the fuel and then claiming business mileage back off them , someone may have a better idea.
  • The only thing I pay for is the fuel. You can choice the mileage you think you will do over a year anything over that at the end of 3 years you are charged for. It goes on your annual salary as to how much they think you can afford and then tax, pension and NI are reduced and the monthly payment is taken from your pay.
  • misterbarlow
    misterbarlow Posts: 474 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    I don't work for NHS but have a car on salary sacrifice scheme through my employer (a big 6 energy supplier) and i think its great...
    for us it worked out only slightly more each month than it was costing to keep our old car on the road, and its hassle free no worries motoring for three years...
  • scotsbob
    scotsbob Posts: 4,632 Forumite
    If you are in the NHS pension scheme you should check this carefully. If they are paying you less salary that is less pension accruing.

    Also check your situation if you decide to buy privately in the future. Will any no claims discount be allowed by an insurer if you leave the scheme and buy privately? Many insurers don't accept no claims from group insurance.

    These schemes are great for employers, from a tax and insurance situation, which is why they promote them heavily to their staff. It may not be such a good deal for the employee.

    Work out how much you will pay in total including loss of pension. Then see if it's a good deal. I suspect it isn't.
  • Thank you. I will check this out.

    as for NCD if at the end of the 3 years I don't wish to renew the scheme they will give you a letter about my no claims. I would only lose 3 years reduced pension, tax and NI as Im not at retirement age yet still have a few years to go.
  • bigjl
    bigjl Posts: 6,457 Forumite
    A former colleague of mine that moved to an NHS Trust up north got a Hyundai i30 on this scheme.

    He does higher than average mileage due to living in Sunderland but working for YAS, think he does about 30k a year.

    He thinks it is the best thing he has ever done.

    And he is handy with the tools so never paid much to garages for servicing and repairs when he owned his own cars before.

    Not sure how beneficial it would be for a low mileage driver.

    The deals certainly seem to be decent.

    Though even finding out details is hard.

    I spent weeks trying to find out about it when working for the NHS.

    Even though many office staff had the cars they always seemed less than keem to give info to clinical staff for some reason.

    If you want fixed costs without the worry of budgeting then go for it.
  • bigjl
    bigjl Posts: 6,457 Forumite
    marie_91 wrote: »
    Thank you. I will check this out.

    as for NCD if at the end of the 3 years I don't wish to renew the scheme they will give you a letter about my no claims. I would only lose 3 years reduced pension, tax and NI as Im not at retirement age yet still have a few years to go.


    I am not so sure you will lose any pension.

    Surely your pensionable pay will remain the same?

    I always thought the money was taken from your wages prior to deductions. So your taxable pay would reduce.

    But taxable and pensionable pay are different in my experience
  • 2 things ( i work for nhs)

    1: if you do more than 3500 miles a year i think they have to offer you a lease car, my friend gets paid £6 a month to have a new (well new two years ago) fiesta and just covers the fuel, all personal mileage allowed.

    2: you currently get 54p a miles for the first 3500 miles if you use your own car, which equates to roughly £1800 a year, which is designed to cover wear and tear and insurance, it certainly does mine.
  • forgotmyname
    forgotmyname Posts: 32,816 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Its a personal thing. You know exactly how much your going to pay each year so may help you budget.

    But you can probably spend less by having your own vehicle.

    Although starting out with zero no claims may push private ownership costs up?
    Censorship Reigns Supreme in Troll City...

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