Electric Car Salary Sacrifice Scheme

thegentleway

Grumpy_chap said:

Brie said:

I ruled it out at my workplace as the scheme couldn't tell me the full cost of the car.  I'd pay X per month for 3 years and then need to pay ???????.  If I'm buying something I want to know how much it costs.

Unlike a personal PCP, the car SS schemes are usually true lease where a monthly payment is set to have the use of the car for 3 years after which the car is returned.  The lease company has no obligation to sell to you, though they may agree to do so.  That agreement to sell will usually be at the rate that the lease company set at the time the car is to be returned.

Exactly, the scheme is lease only.

thegentleway

Petriix said:

thegentleway said:

Petriix said:

If you will have home charging then it's a no-brainer. The saving vs petrol (if you can charge entirely on Octopus Go at 7.5p per kWh) will work out at over £2,000 for 8,000 miles. 

Wow that's good, only for 4 hours though.

4 hours @ 7kW = 28kWh @ 4 miles per kWh = 112 miles; call it 100 miles per night after losses. That could cover 20k miles if spread evenly throughout the working year.

Sounds pretty good like that!

Jenni_D

thegentleway said:

Grumpy_chap said:

Will the SS amount impact your pension?

No the FAQ says "Only if you are in the NHS pension scheme", which I'm not. I work for a University.

Obvious/stupid (delete as applicable) question alert - if you don't work for the NHS, how can you use salary sacrifice with NHS Fleet Solutions?

thegentleway

Jenni_D said:

thegentleway said:

Grumpy_chap said:

Will the SS amount impact your pension?

No the FAQ says "Only if you are in the NHS pension scheme", which I'm not. I work for a University.

Obvious/stupid (delete as applicable) question alert - if you don't work for the NHS, how can you use salary sacrifice with NHS Fleet Solutions?

The scheme is available for public sector: NHS, Police force, local Councils, Universities and Academy schools.

Sixforbracewell

Has anyone done the calculations and impacts for basic rate taxpayer for this offer? It does seem very good value but would like to see some detail on the AA implications for 20% payers, or don't they apply?

Bigphil1474

I looked into the NHS scheme as a council worker. I worked out it would end up costing me about £150 a month (net) for a hatchback sized EV taking into account the pre-tax cost and all the things I wouldn't be paying out on. However, I've not really got an answer on what would happen to my Essential Car User payments, plus our mileage rate for petrol users is 40.9p per mile at the moment but they don't seem to have an EV mileage rate - my employer doesn't even know how it would be claimed which is odd (we currently submit mileage claims with fuel VAT receipts).

Working out the longer and short term effects on the pension isn't easy as our HR team couldn't tell me either. They could tell me how much less I would pay, and how much less they would pay, but couldn't tell me how much difference it would make when I retire in 15 years. 

Overall, it looks the cheapest way to get an EV but the headline figures are a little misleading taking into account the not so well publicised secondary costs to pensions and potentially car user payments. I'll be giving it a miss for now.