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Salary sacrifice

The business is moving away from company car and providing a cash for car allowance amounting to £450.
They have also introduced a scheme called tusker which is a way to lease a car with the full company car benefits inlcusive of price. what i need help with is breaking down the price and understanding the exact effect on my take home pay, being a 40% tax payer.
Below is a screenshot from tusker for a car i have selected, can somebody confirm how much i would be out of pocket after my car allowance?

image.png

Comments

  • El_Torro
    El_Torro Posts: 2,261 Forumite
    Part of the Furniture 1,000 Posts Name Dropper

    The breakdown implies that some of your Income Tax saving will be at 40% and some will be at 20%. If it's wrong and all the saving will be at 40% then your Income Tax saving will be £267.60, not £217. So the reduction to your take home pay will be £396 per month, not £444 per month.

    The £450 car allowance is £261 per month net, after 40% tax and 2% NI. So in theory you'll be £189 out of pocket every month. Presumably you can take the car allowance and not get a salary sacrifice lease car though?

  • Isthisforreal99
    Isthisforreal99 Posts: 1,214 Forumite
    1,000 Posts Photogenic Name Dropper

    These lease car deals via employer are often poor value for money. Make sure you compare personal lease deals for the same car direct with a lease company.

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