Salary sacrifice leasing
Discussion
nufcfan said:
Where is the value at the minute in the mid to larger EV class? I can use Tusker but nothing really jumping out. If I look at 3y 7500 miles options gross payments as follows:
I pace HSE £1059 gross £522 net
IX 40 sport £1178 gross £570 net
Q8 55 sport £1233 gross £599 net
Ix3 Msport £1056 gross £509 net
Q4 sportback 45 Quattro black edition £1022 gross £490
Not sure I am seeing anything to tempt me yet. Missing anything better?
There's been plenty of Enyaqs recently from stock or incoming stock at around 350 net on similar terms (40%). They are "only" a 60 but spec is decent enough as they are the "edition" trim. Not sure if it counts as mid to larger EV class, but certainly one of the better practical EVs - big boot and cabin.I pace HSE £1059 gross £522 net
IX 40 sport £1178 gross £570 net
Q8 55 sport £1233 gross £599 net
Ix3 Msport £1056 gross £509 net
Q4 sportback 45 Quattro black edition £1022 gross £490
Not sure I am seeing anything to tempt me yet. Missing anything better?
Test drive the q4 and q8 errors yesterday, 45 Quattro Q4 and 55 Quattro Q8. Both nice cars and good drives, thought the q4 was a bit smaller than I want ideally but just about big enough. Q8 was nice, but only had it in the sport trim so would like to see Sline, but I thought it was well equipped.
Leaning towards a Q8 so far but going to cost about £75 per month more I think.
Driving the ix3 and iX later this week and then need to make a decision.
Leaning towards a Q8 so far but going to cost about £75 per month more I think.
Driving the ix3 and iX later this week and then need to make a decision.
NHS so reduction in salary means less into pension pot as a defined benefit scheme e.g gross before salary sacrifice might be £90k but if a £10k salary sacrifice gross payment on a car the pension is based on an £80k salary. I think it’s the main negative of SS but offset by tax savings etc.
Oh I didn’t know that. Is that the same for all SS car schemes?
Does a SS pension scheme work the same. Ie 90k but do 5k per year SS in to your pension , the company only pay their part on 85k not 90k or is that different?
My company pay their pension contribution based off my full salary not after I have done SS for my pension.
We have only just moved to it for pension so I am not an expert.
We are also currently looking at moving to car SS.
Does a SS pension scheme work the same. Ie 90k but do 5k per year SS in to your pension , the company only pay their part on 85k not 90k or is that different?
My company pay their pension contribution based off my full salary not after I have done SS for my pension.
We have only just moved to it for pension so I am not an expert.
We are also currently looking at moving to car SS.
riskyj said:
interstellar said:
Oh I didn’t know that. Is that the same for all SS car schemes?
No, many (most?) schemes do not affect pension. NHS is one of the common ones which does. If you earn 50k and you employer pays 5% into your salary, that's a pension contribution of £2,500.
If you sacrifice 5k of your salary on a vehicle, then your employers pension contribution will be 5% of 45k, so £2,250. A reduction of £250 per year.
rudester said:
riskyj said:
interstellar said:
Oh I didn’t know that. Is that the same for all SS car schemes?
No, many (most?) schemes do not affect pension. NHS is one of the common ones which does. If you earn 50k and you employer pays 5% into your salary, that's a pension contribution of £2,500.
If you sacrifice 5k of your salary on a vehicle, then your employers pension contribution will be 5% of 45k, so £2,250. A reduction of £250 per year.
Paul_M3 said:
rudester said:
riskyj said:
interstellar said:
Oh I didn’t know that. Is that the same for all SS car schemes?
No, many (most?) schemes do not affect pension. NHS is one of the common ones which does. If you earn 50k and you employer pays 5% into your salary, that's a pension contribution of £2,500.
If you sacrifice 5k of your salary on a vehicle, then your employers pension contribution will be 5% of 45k, so £2,250. A reduction of £250 per year.
riskyj said:
phpe said:
Same on mine - base salary before any adjustments is used for pension, death in service, etc
And mine. Sample of 3 I appreciate, but illustrates that indeed not all ss schemes affect pension. NHS and teachers are the only two I’m aware of where pension is affected.
I even checked when there was chatter about an getting a SS car impacting pension - no impact here.
Cupid-stunt said:
riskyj said:
phpe said:
Same on mine - base salary before any adjustments is used for pension, death in service, etc
And mine. Sample of 3 I appreciate, but illustrates that indeed not all ss schemes affect pension. NHS and teachers are the only two I’m aware of where pension is affected.
I even checked when there was chatter about an getting a SS car impacting pension - no impact here.
Every salary sacrifice scheme I’ve been involved in designing, or come across, has been structured so that there is a notional salary which is unaffected by salary sacrifice. And this notional salary is used for benefits such as pension. It’s a key part of the design to avoid distortions.
It seems a big flaw in the public sector schemes that they don’t do this. If it affects the salary figure on which pension is calculated, there could be an enormous hit on the future value of a defined benefit pension.
It seems a big flaw in the public sector schemes that they don’t do this. If it affects the salary figure on which pension is calculated, there could be an enormous hit on the future value of a defined benefit pension.
Zigster said:
Every salary sacrifice scheme I’ve been involved in designing, or come across, has been structured so that there is a notional salary which is unaffected by salary sacrifice. And this notional salary is used for benefits such as pension. It’s a key part of the design to avoid distortions.
It seems a big flaw in the public sector schemes that they don’t do this. If it affects the salary figure on which pension is calculated, there could be an enormous hit on the future value of a defined benefit pension.
I’d say it’s more of the flaw the other way around - it’s illogical that if you sacrifice (so it’s taken away as if it never existed) some of your salary that your employer would still make pension contributions on it.It seems a big flaw in the public sector schemes that they don’t do this. If it affects the salary figure on which pension is calculated, there could be an enormous hit on the future value of a defined benefit pension.
Sheepshanks said:
Zigster said:
Every salary sacrifice scheme I’ve been involved in designing, or come across, has been structured so that there is a notional salary which is unaffected by salary sacrifice. And this notional salary is used for benefits such as pension. It’s a key part of the design to avoid distortions.
It seems a big flaw in the public sector schemes that they don’t do this. If it affects the salary figure on which pension is calculated, there could be an enormous hit on the future value of a defined benefit pension.
I’d say it’s more of the flaw the other way around - it’s illogical that if you sacrifice (so it’s taken away as if it never existed) some of your salary that your employer would still make pension contributions on it.It seems a big flaw in the public sector schemes that they don’t do this. If it affects the salary figure on which pension is calculated, there could be an enormous hit on the future value of a defined benefit pension.
It’s a big flaw for NHS schemes and it’s really difficult to accurately work out the true long term cost along with how that is offset by tax savings etc. logical solution would be to pay the amount lost from the pension into a seperate private SIPP but how many people will actually do that?
Anyway trying to decide between a Q4, ix3 or Q8…decisions.
Anyway trying to decide between a Q4, ix3 or Q8…decisions.
nufcfan said:
It’s a big flaw for NHS schemes and it’s really difficult to accurately work out the true long term cost along with how that is offset by tax savings etc. logical solution would be to pay the amount lost from the pension into a seperate private SIPP but how many people will actually do that?
Anyway trying to decide between a Q4, ix3 or Q8…decisions.
Surprised the iX didn't make the shortlist TBH. Ground up EV and AWD unlike the iX3, great interior, decent efficiency etc.Anyway trying to decide between a Q4, ix3 or Q8…decisions.
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