NHS car lease

SarahB89

I’m contemplating a car via NHS fleet solutions.
The 2% medical staff pay rise this year has taken me into the 12.5% pension band, and I’m paying higher rate tax, so any salary sacrifice to get a bit of this back would be helpful. I’m a long way off pensionable age so not worried about the impact there.

I can’t make sense of the BIK tax implication versus the salary sacrifice gains - can anyone talk me through it please? Ideally I’d get a BMW X1, or similar small SUV. I don’t get any mileage payments from my employer.

laticsforlife

I could be wrong, but the salary sacrifice might not make any change to your pensionable income, worth checking that.

Is your pension increase a cliff-edge one where everything is now @ 12.5% ? If so, the other thing to do is go part time to reduce your pay to just under the pension rate increase, you might actually be financially better-off, crazy i know

FtbDreaming

s your pension increase a cliff-edge one where everything is now @ 12.5% ? If so, the other thing to do is go part time to reduce your pay to just under the pension rate increase, you might actually be financially better-off, crazy i know

Im part time but still pay pension according to the full time salary. So im in the 9.3% band assuming full time id earn £30112 ish but ive only actually earnt £10000 last year so i dont think going part time will make a difference to pension. It will to tax though. I work 24 hours and pay little tax etc, if i do 36 I have almost the same take home pay.

If you do sign up to the car make sure youre happy in your job amd intend to stay for the full term of the lease. Ive seen many people sobbing because they couldn't take up a job offer in another trust because of the car unless they pay thousands and give it back.

MrDeckchair

I can't help with your pension question,but on this topic it might be worth your time looking at a ULEV. They attract 0% BIK from 6th April 2020, rising to 2% and 3% in subsequent years. Compare that to 16% for most other cars. The Tusker website shows these values for you.