Salary sacrifice leasing
Discussion
z4RRSchris said:
if that’s the case i’m switching our scheme from
Octopus to them.
what was the “extras” package PM gross?
Total worked out £3,167.19 (Gross)Octopus to them.
what was the “extras” package PM gross?
Broken down into the following:
Maintenance £89.90
Service £735.23
Tyres £2,342.16 (based on 45k miles over the term)
Didn’t get a breakdown of the insurance, that’s just included in the lease monthlies
Zj2002 said:
Just had a play on the Zenith portal - £900 a month for an i5 40 Touring M Sport Pro or I4 M50.
Pretty depressing!
18 months to go on my i4 M50 (£600 a month) and at this rate it will be replaced by a shed.
Unless something dramatic changes. Mine will be my one and only foray. Pretty depressing!
18 months to go on my i4 M50 (£600 a month) and at this rate it will be replaced by a shed.
J2daG1990 said:
Not sure if it's an error with the costing or just a discount, but today on my work's Octopus Energy Salary Sacrifice Electric Car Scheme, the Jeep Avenger Summit (top spec version) was coming out cheaper net cost than the base spec model.
I've put an order in to see if it goes through finger's crossed.
Last week when I specced it I was getting £512 net on their calculator and then when I did it today with no changes it was coming out at £465. This was the Summit with Sun/Volcano Bi-Colour Metallic Paint and 10k miles over 3 years.
You could do 8k and basic paint and get it even cheaper if need be, the Summit comes with quite a lot as standard.
Been looking at one of these for the misses on a standard lease but they never seem to come down in price. I have a Model Y through octopus, and the summit would be less then £400 a month for me all in (substantially cheaper then car only elsewhere). I wonder if I can have 2 cars. Time to my CFO to see what can be done. I've put an order in to see if it goes through finger's crossed.
Last week when I specced it I was getting £512 net on their calculator and then when I did it today with no changes it was coming out at £465. This was the Summit with Sun/Volcano Bi-Colour Metallic Paint and 10k miles over 3 years.
You could do 8k and basic paint and get it even cheaper if need be, the Summit comes with quite a lot as standard.
ChocolateFrog said:
Zj2002 said:
Just had a play on the Zenith portal - £900 a month for an i5 40 Touring M Sport Pro or I4 M50.
Pretty depressing!
18 months to go on my i4 M50 (£600 a month) and at this rate it will be replaced by a shed.
Unless something dramatic changes. Mine will be my one and only foray. Pretty depressing!
18 months to go on my i4 M50 (£600 a month) and at this rate it will be replaced by a shed.
Zj2002 said:
ChocolateFrog said:
Zj2002 said:
Just had a play on the Zenith portal - £900 a month for an i5 40 Touring M Sport Pro or I4 M50.
Pretty depressing!
18 months to go on my i4 M50 (£600 a month) and at this rate it will be replaced by a shed.
Unless something dramatic changes. Mine will be my one and only foray. Pretty depressing!
18 months to go on my i4 M50 (£600 a month) and at this rate it will be replaced by a shed.
I have just pushed the button on an i5 touring 40 MSport comfort plus tech plus (not pro) through zenith, and it was less than £850 - including paint, 20, inch wheels, carbon trim and sun protection glass - insured in South Wales (this may help with lowering the costs).
The starting figure was £768 before taking it through to the proper quotes page.
Still expensive but the same car on the same terms from any of the normal leases is >£1,000 a month. The gross figure is actually broadly aligned with the costs
It is an £85K car now (that is a whole different topic). But cars with a cheaper P11d such as Q6 Etron are coming out more net.
Round 3 with trying to get a car from tusker and it seems to have finally worked.
i4 m50 started at (iirc) £615 order cancelled and went up to something like £800
q8 etron started at £715 order cancelled and went to something like £1100
Found an in stock q4 etron, pebble grey, black edition, 21" wheels £570
Order is all confirmed and meant to be here this week. Audi then emailed offering a free ohme home pro charger so effectively another grand off (if its considered a standard install).
A great deal imo when you consider no deposit, no maintenance, no tyres, no insurance, tax etc.
i4 m50 started at (iirc) £615 order cancelled and went up to something like £800
q8 etron started at £715 order cancelled and went to something like £1100
Found an in stock q4 etron, pebble grey, black edition, 21" wheels £570
Order is all confirmed and meant to be here this week. Audi then emailed offering a free ohme home pro charger so effectively another grand off (if its considered a standard install).
A great deal imo when you consider no deposit, no maintenance, no tyres, no insurance, tax etc.
Is there a calculator for working out the gross/net cost (higher rate) or is it just a straight 40% off the quoted price (on Tusker)?
I presume given the SS nature of this, unless you manually adjust your pension payments, any % based contributions will drop (following the SS deduction), so this needs to be considered in the scheme of the saving? Putting in less also means your employer contribution takes a hit, which needs to be factored in the 'deal'?
Or am I seeing that incorrectly?
I presume given the SS nature of this, unless you manually adjust your pension payments, any % based contributions will drop (following the SS deduction), so this needs to be considered in the scheme of the saving? Putting in less also means your employer contribution takes a hit, which needs to be factored in the 'deal'?
Or am I seeing that incorrectly?
James-gbg1e said:
Is there a calculator for working out the gross/net cost (higher rate) or is it just a straight 40% off the quoted price (on Tusker)?
I presume given the SS nature of this, unless you manually adjust your pension payments, any % based contributions will drop (following the SS deduction), so this needs to be considered in the scheme of the saving? Putting in less also means your employer contribution takes a hit, which needs to be factored in the 'deal'?
Or am I seeing that incorrectly?
(Our scheme) - re. the 40% gross/net it depends how much over the 40% threshold you are and how much the gross payments are. Broadly speaking though yes that's how it works i.e. if the gross payment was £1k a month and you gross salary was £80k then you would only "lose" £600 out of your pay packet each month. However, given the 40% tax bracket kicks in at around £50k salary, if your gross salary was £55k then the £1k a month would take that down to £43k, meaning your saving isn't as high - you'd save 40% on the 50-55k portion but only save 20% on the 43-50k portion.I presume given the SS nature of this, unless you manually adjust your pension payments, any % based contributions will drop (following the SS deduction), so this needs to be considered in the scheme of the saving? Putting in less also means your employer contribution takes a hit, which needs to be factored in the 'deal'?
Or am I seeing that incorrectly?
Pension is unaffected, your contribution / employers contribution would be based on the full salary (£80k in the above example, not £68k).
JustinCredible said:
(Our scheme) - re. the 40% gross/net it depends how much over the 40% threshold you are and how much the gross payments are. Broadly speaking though yes that's how it works i.e. if the gross payment was £1k a month and you gross salary was £80k then you would only "lose" £600 out of your pay packet each month. However, given the 40% tax bracket kicks in at around £50k salary, if your gross salary was £55k then the £1k a month would take that down to £43k, meaning your saving isn't as high - you'd save 40% on the 50-55k portion but only save 20% on the 43-50k portion.
Pension is unaffected, your contribution / employers contribution would be based on the full salary (£80k in the above example, not £68k).
Thanks, that's very useful to appreciate. I checked the Tusker site before and the prices were a joke compared to what you find elsewhere, but I hadn't paid enough attention to the finer detail - plus when you factor insurance and so on, it makes more sense.Pension is unaffected, your contribution / employers contribution would be based on the full salary (£80k in the above example, not £68k).
The outline via higher rate was also useful, thanks. It does indeed make sense for me to look at 🙂
James-gbg1e said:
Is there a calculator for working out the gross/net cost (higher rate) or is it just a straight 40% off the quoted price (on Tusker)?
I presume given the SS nature of this, unless you manually adjust your pension payments, any % based contributions will drop (following the SS deduction), so this needs to be considered in the scheme of the saving? Putting in less also means your employer contribution takes a hit, which needs to be factored in the 'deal'?
Or am I seeing that incorrectly?
The pension deductions depend on the type of pension you have - if it's some kind of Defined Benefit final salary (mainly only public sector or related employers now) then your contribution will go down (and the employers contribution goes down more, hence they like SS) and it affects your final pension. I presume given the SS nature of this, unless you manually adjust your pension payments, any % based contributions will drop (following the SS deduction), so this needs to be considered in the scheme of the saving? Putting in less also means your employer contribution takes a hit, which needs to be factored in the 'deal'?
Or am I seeing that incorrectly?
Defined Contribution pension contributionns (both yours and employers) should stay the same.
It pays to know what your total taxable income is - ie after any other tax free items like pension, and also adding on (non-ISA) savings interest. Then calculate your car salary sacrifice from wherever that lands.
Note that if your total taxable is £100k to £125k then you're looking at a 'effective' 60% income tax bracket (62 with NI) so the car would be 0.38x the gross cost plus BIK.
Also note on Tusker that while it makes it look like they include road tax, for electric that's currently zero however in their T&Cs is says any change in annual road tax will be revised in to your payments, so the impending £520 on electric cars will get added on to your payments when that kicks in.
I have quite a few colleagues on Tusker. With the insurance and tyres include its hard to beat, even at the 40% tax bracket.
Note that if your total taxable is £100k to £125k then you're looking at a 'effective' 60% income tax bracket (62 with NI) so the car would be 0.38x the gross cost plus BIK.
Also note on Tusker that while it makes it look like they include road tax, for electric that's currently zero however in their T&Cs is says any change in annual road tax will be revised in to your payments, so the impending £520 on electric cars will get added on to your payments when that kicks in.
I have quite a few colleagues on Tusker. With the insurance and tyres include its hard to beat, even at the 40% tax bracket.
eein said:
Also note on Tusker that while it makes it look like they include road tax, for electric that's currently zero however in their T&Cs is says any change in annual road tax will be revised in to your payments, so the impending £520 on electric cars will get added on to your payments when that kicks in.
The expenive car rate only applies to cars registered from April 25.eein said:
I have quite a few colleagues on Tusker. With the insurance and tyres include its hard to beat, even at the 40% tax bracket.
It should be massively impossible to beat, but I suppose they're a business, so they get the most out if it they can.Sheepshanks said:
eein said:
Also note on Tusker that while it makes it look like they include road tax, for electric that's currently zero however in their T&Cs is says any change in annual road tax will be revised in to your payments, so the impending £520 on electric cars will get added on to your payments when that kicks in.
The expenive car rate only applies to cars registered from April 25.eein said:
I have quite a few colleagues on Tusker. With the insurance and tyres include its hard to beat, even at the 40% tax bracket.
It should be massively impossible to beat, but I suppose they're a business, so they get the most out if it they can.Looks like I need to get on with ordering that i5 Touring so it gets registered before April 2025 and thus only have to pay £190 per year instead of the full £600 !
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