NHS lease car

fred246

In April 2015 a career average pension was introduced for everyone except a few people who are close to retirement. The people I know with an NHS car are young people who will definitely lose pension as a result. How much depends on how much they sacrifice and how many years they do it for. If they do the usual new car every 3 years deal they will stand to lose a substantial proportion of their pension.

[Deleted User]

Question for those who've got NHS lease cars.

What rate do you get for business mileage? I heard its 12p.
At the moment, wife does not have a lease car and gets 45p.

I know the lease car is not a bad deal but maybe not if you get so much less per mile for business.

I know in the past, I've had company cars (i.e. company has supplied car as part of the salary package - I just had to pay tax) and have got 12p a mile. Fair enough its not my car - I just pay for the fuel.

But with NHS you're paying for the lease so its different. Just thinking, say 10,000 business miles. 33p difference. = £3300 a year = £275 a month more expenses.

Surely be better off surely not bothering with NHS lease, and putting this £275 towards getting own personal lease (so in effect its own car) and continuing to claim 45p mile!

Or am I wrong?

[Deleted User]

Ah. Apparently its 56p a mile for first 3500 then 20p a mile.

Wife only works 2 days a week so probably only does around 3500 business miles. Claiming 56p instead of 14p for this means £1470 difference. £122 a month to put towards sorting out your own deal.

If Im right about the 14p that is for lease cars.

bigjl

saverbuyer wrote: »

Also need to look into the effect on your wife's pension. Are payments taken from gross pay therefore reducing her pensionable salary?

Have done a little bit of research into this and it would appear that those that remained in the 1995 Section are unaffected but the later 2008 Section are.

bigjl

fred246 wrote: »

In April 2015 a career average pension was introduced for everyone except a few people who are close to retirement. The people I know with an NHS car are young people who will definitely lose pension as a result. How much depends on how much they sacrifice and how many years they do it for. If they do the usual new car every 3 years deal they will stand to lose a substantial proportion of their pension.

I don't think that change will affect those who stayed in the 1995 Section.

It does explain why management tried so hard to "convince" people to switch over

highet

the leasing payments are taken from gross salary ie before superannuation and tax are deducted - this has the effect of reducing your superannuable salary so you pay less in superannuation contributions but your pension would be less as its based on best superannuable salary (after leasing payments have been deducted) of final three years of working multiplied by length of service divided by 80 - as has been stated above the way round this is to give up all salary sacrifice schemes in last year before retirement (child care vouchers/car leasing/cycle to work) to maximise superannuable salary - this only applies to people on the 95 scheme - later schemes are career average where there is no opportunity to make up ''missed'' superann contributions

[Deleted User]

bigjl wrote: »

I don't think that change will affect those who stayed in the 1995 Section.

It does explain why management tried so hard to "convince" people to switch over

But isnt everyone, even though the years before are protected, now moved onto a new scheme?

So from now it will matter how much your taxable pay is?

[Deleted User]

On a separate note, I think the car co-ordinator at trust is clueless. Shes telling us that you get 45p a mile but because its over 10p a mile that the government recommend you have to pay tax on 35p a mile.

Complete crap. I run my own business and claim 45p a mile against expenses. Thats the max you can claim WITHOUT tax implications.

I hate people who are clueless and try to blag it.

What I think she means is that the NHS rate is now 56p a mile, so you have to pay on anything over 45p a mile.

=rizla=

RE NHS pensions,


Me and my wife currently both salary sacrifice for the childcare vouchers, our childcare needs are due to change soon, to the point of only needing one of us to sacrifice, but which one? My wife stayed on the old pension scheme, but obviously changed to the '15 as she had no option. She's looking at quitting the NHS in 2-3 years time and then having to wait ~20 years to get the pension from them.


I also work in the public sector and again had a '15 pension forced on me, again i'm looking at leaving in 2-3 years time, I know with my pension i'll get the full money for the before '15 pension bit irrelevant of the salary sacrifice and then the 2-3 years of final salary pension, I think abated by the salary sacrifice, so overall the sacrifice wont 'hurt' me too much, is the NHS system the same, or will my wife be penalised for the whole of her career?