EV through Salary sacrifice Scheme

[Ngac]

Hi all,

looking at a EV via salary sacrifice through my work. Seems very expensive on the surface but wondered if anyone knows the rules around Sal sac and child benefit?

Basically the cost of a tesla 3 is Net 450 -500 (depending on mileage) a month for 3 years which includes insurance and maintenance. This seems pricey to me but my wage is such that i earn just over the threshold where i do not qualify for child benefit. By taking salary sacrifice on this, (along with my pension salary sacrifice) it will probably push me under the threshold which means that i may get 160 a month Child benefit so the 450 a month doesnt seem as bad.

What's everyone's understanding of this? A part of me wonders if its worth all the hassle to be honest. Would love to hear thoughts?

[snotrag]

The way child benefit is calculated ( https://www.gov.uk/child-benefit-tax-charge ) is idiotic, as for people who hover round the point at which higher rate kicks in, it means they end up having to do self assessment. Single income, PAYE workers, doing self assessment - absolutely NOT what it is meant for.

As for the other stuff - I salary sacrifice as much as I am allowed to on Childcare vouchers - because I would have to pay that anyway.

I also salary sacrifice on the C2W scheme - because I would have bought a bike anyway.

If you are going to get a new car or spend that kind of money on a car, then yes, it makes sense to salary sacrifice an EV. But only if thats what you were going to do anyway.... if that makes sense.

Its a question that gets asked reglarly when people join the cycle to work scheme, spending a grand or two over 12 months - What happens if I leave my job?

So for a much, much biggest cost, spread over a much longer period, I'd want to think very carefully about what you are getting tied into, how it works if you leave, what costs could you be left with to leave your job?

Buying a £100 item in a half price sale that you dont really want or need doesnt save you £50, it costs you £50....

[Ngac]

Very true.

If i leave my job after 6 months it goes back with no penalty which seems great. Before 6 months then there are costs to pay.

Thanks for the input. My 5 series costs me nothing (£30 tax and decent MPG) and is paid for so maybe I will hang fire.

Thanks

[Uncle boshy]

If your that close to the child benefit threshold and can afford to, I’d do salary sacrifice for additional pension contributions to take you back under the threshold

[Ngac]

yes i already do 12%. ill just up it to as much as i can thanks

[snotrag]

Uncle boshy said:

If your that close to the child benefit threshold and can afford to, I’d do salary sacrifice for additional pension contributions to take you back under the threshold

Oh yeah, and that!

[GreatGranny]

Not sure why you think that's pricey.

Take a look at private leasing for the same car, then add insurance, servicing, maintenance etc.. and see what you get.

It will be nearer 50% more.

[I-A]

Do the salary sacrificed items get factored into (reduce) your adjusted net income? It doesn't mention it on the gov website.