Salary sacrifice for cars

My employer have just introduced a benefit scheme that allows us to finance a car through salary sacrifice. It gives both the employees and employers savings in tax NI and EI etc so it sounds good to me. Has anyone had any experience of it? What does the process involve i.e. credit checks, contracts etc? I'm still waiting for my login details to my benefits account so unable to ask these questions at the mo. Thanks.

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  • TyreLever
    TyreLever Posts: 212
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    Login details to your accounts your benefits are paid? Why are you claiming benefits if your in work? If you work part time then its not worth getting a car anyway.
    Sometimes my advice may not be great, but I'm not perfect and I do try my best. Please take this into account.
  • GwylimT
    GwylimT Posts: 6,530
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    edited 11 June 2017 at 4:39PM
    TyreLever wrote: »
    Login details to your accounts your benefits are paid? Why are you claiming benefits if your in work? If you work part time then its not worth getting a car anyway.

    In work employee benefits are typically accessed via an online portal. Benefits as in financial assistance is claimed by many working people, including those working fulltime. Not sure why you mentioned these benefits as the OP hasn't.
  • System
    System Posts: 178,077
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    Sorry? I work full time and I don't claim any benefits at all. The salary sacrifice program is an employee benefit. Thanks.
  • molerat
    molerat Posts: 31,693
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    You need to understand how the scheme works. You will not get a car completely tax and NI free, you will have to pay tax on the benefit of having the car and if you choose the wrong car it could be costly.
  • System
    System Posts: 178,077
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    molerat wrote: »
    You need to understand how the scheme works. You will not get a car completely tax and NI free, you will have to pay tax on the benefit of having the car and if you choose the wrong car it could be costly.

    I know it's not tax free, I did state it would make savings for us both as it's taken out of my gross salary not net.

    As far as I'm aware the Benefit In Kind is less for models with lower emissions. Electric or hybrid cars also have the most discount to their retail price.
  • maninthestreet
    maninthestreet Posts: 16,127
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    Surely salary sacrifice schemes for benefits such as cars was stopped in the last budget??
    "You were only supposed to blow the bl**dy doors off!!"
  • System
    System Posts: 178,077
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    Clearly not! Seen quite a few companies online that do it done I've been researching.
  • SeanG79
    SeanG79 Posts: 977
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    Surely salary sacrifice schemes for benefits such as cars was stopped in the last budget??

    Definitely wasn't stopped, although there was mention of stopping it prior to the budget. Considering most councils and public sector businesses offer similar schemes to their employees, I think it is unlikely it will be fully removed, although I think there will be a definite sway to only including low emissions/ultra low emissions vehicles.
  • Guest101
    Guest101 Posts: 15,764 Forumite
    Are you sure it's a car purchase, not a car lease?
  • molerat
    molerat Posts: 31,693
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    I thought that the changes meant that from April 17 only cars under 75g C02/km were allowed under salary sacrifice.
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