NHS Fleet Solutions (Lease car)

omfs111

Hello folks,

My wife is considering an NHS lease car via NHS fleet solutions. We have got a few online quotes and see that there is a 'salary sacrifice' which gives a cheaper monthly amount (but with an impact upon pension) and a more expensive 'Salary Deduction' that is taken from the net monthly salary (and apparently this option has VAT).

At present, we remain undecided and we are still exploring this option (possibly looking at salary deduction rather than sacrifice).

Has anyone on here gone through this process already (either salary sacrifice or deduction) and if so, what has been your experience? have there been any unexpected consequences or negative experiences with this scheme?

Thanking you in advance! :beer:

loskie

I know our lease scheme (DEFRA) looks costlier than sorting out a private lease,

Bigphil1474

The salary sacrifice scheme they are looking at where I work (council) doesn't affect your pension - you pay less national insurance and income tax on that part of your salary that pays for the car. Basically, it is taken off your gross salary before it's taxed. However, there is the down side of it being a benefit in kind, so it affects your tax free allowance at the end of the year depending on the engine size.
I've tried to fathom it out, but the cost seems excessive even though the scheme is 'worry free motoring' - covers tax, insurance, repairs, maintenance, tyres etc. just add fuel. I worked out a Fiesta type car would cost about £200 pm net, and I'd only be saving about £40 on what I currently spend, (plus any potential repair bills through the year - which is unknown). The upside is that it's a new car so wouldn't need an MOT for 3 years. I think if you are thinking of buying a new car, this salary sacrifice is a good scheme, but I've already got a decent car, so it's probably not worth it for me.

GuerillaRadio

I've got the same dilemma at the minute, I've been told conflicting stories by two people that I know on the scheme, one saying she wishes she never signed up as her income tax has increased and another saying she thinks it is great.

The documentation isn't overly helpful either, lots of jargon that can be hard to make sense of. I'm looking at a mid-range Audi A3 Sportback, coming in at £298 per month but I fear that because the value of the car is fairly expensive (approx £25k) it may result in a leap in the amount of income tax paid each month which would pretty much offset any benefits that the scheme offers (we've had quotes from Audi garages that actually turn out a few hundred quid cheaper over the 3 year lease period but obviously this doesn't include insurance, road tax etc.)