Salary Sacrifice - Car scheme

Dental1983

Hi All ! I am looking at signing up  to a salary sacrifice scheme  EV scheme 
I have worked out the BIK tax to be £169 annually . But I’ve noticed in the Ts and Cs it says I am liable for the income tax does this just mean the BIK tax ! Or does the value of the car get added to my salary and I am taxed 20-40% on that ?  I. Which case it definitely isn’t worth my while .

Salary - £33000
value car - £42000

Grumpy_chap

smk77 said:

AUDI Q4 Q4 E-TRON ESTATE 210kW 45 82kWh Sport 5dr Auto

the GROSS cost (excluding insurance but inc maintenance) for 36 months and 10,000 miles is £980 a month...

I have been in contact with another salary sacrifice provider who does this for £455 a month net including insurance based on a 60k salary. My provider is £663 so this is just over £200 a month more expensive.

For a normal non-salary sacrifice lease, at Select Vehicle Leasing, I have priced the same car for £772 including the maintenance. I have included 1/36th of the initial payment in that figure to truly compare monthly to monthly. It's about £220 cheaper! If that was a salary sacrifice, adding insurance (about £50 a month based on my company's scheme) to the £772 would give me a net similar to this other provider. 

You only have the choice of one provider (selected by your employer) for the SS car.  If that choice is not good value, then don't opt into the scheme.

As others mentioned, the particular provider might have great deals with, say, Nissan and less attractive deals with Audi as you prefer.  If the scheme is not good value for the car you wish to have, then don't opt into the scheme.

In comparing the SS cost with the SVL cost, remember that the SVL cost has to be met from taxed income whereas the SS deduction is from untaxed income.

smk77

Grumpy_chap said:

smk77 said:

AUDI Q4 Q4 E-TRON ESTATE 210kW 45 82kWh Sport 5dr Auto

the GROSS cost (excluding insurance but inc maintenance) for 36 months and 10,000 miles is £980 a month...

I have been in contact with another salary sacrifice provider who does this for £455 a month net including insurance based on a 60k salary. My provider is £663 so this is just over £200 a month more expensive.

For a normal non-salary sacrifice lease, at Select Vehicle Leasing, I have priced the same car for £772 including the maintenance. I have included 1/36th of the initial payment in that figure to truly compare monthly to monthly. It's about £220 cheaper! If that was a salary sacrifice, adding insurance (about £50 a month based on my company's scheme) to the £772 would give me a net similar to this other provider. 

You only have the choice of one provider (selected by your employer) for the SS car.  If that choice is not good value, then don't opt into the scheme.

As others mentioned, the particular provider might have great deals with, say, Nissan and less attractive deals with Audi as you prefer.  If the scheme is not good value for the car you wish to have, then don't opt into the scheme.

In comparing the SS cost with the SVL cost, remember that the SVL cost has to be met from taxed income whereas the SS deduction is from untaxed income.

It's supposed to be a scheme that is beneficial to employees otherwise it's pointless. I am looking into this again and for every car, there is no advantage.

In fact, as an example, I can get a Skoda Elroq for £421 a month from Skoda. My provider is saying that pre-tax incentives it's £603. This is like for like miles, duration and maintenance package. 1 month up front for Skoda so make that £433. Surely my provider should be able to get a competitive deal for the same car? For a standard tax payer there is no advantage whatsoever. For higher rate, it's marginal. It seems like the lease company are making a packet out of these schemes. tbh, rather pay tax to the government that line some company's pocket.

It could be the company my employer uses is a bad apple,  in which case, I either forget it completely or raise it with them.