Cyclone1
Member
Thank you. So this is the amount that appears on your monthly payslip? Does it include servicing?
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Salary Sacrifice
- Thread starter Pagemakers
- Start date
Hi sadly not - if it’s through an employer scheme it classes as a company car for 2l cars that’s 11p. For EV the advisory rate is 4p
On mine the gross amount shows before tax, therefore saving the tax and ni. Through my tusker scheme insurance for me and my wife, servicing, tax and tyres are included
this is definitely something to check first! As a director in my old company with a Model S once we got audited, I couldn’t claim 45p a mile any more and had to claim 4p a mile.
when charging at home it barely covered the cost! Luckily I had free supercharging which balances it out a little.
I worked out it was cheaper for me to get a personal car and claim 45p.
Thanks, I had a sneaky feeling that would be case. Although its Salary sacrifice it's still classed and viewed as a company car. This would mean that company would need to supply insurance, tyres, etc.
Thanks for your concern. I only do approx 2k miles a year roughly as business mileage so not significan. I initially hoped that 'income' would help with financing the M3 but since worked out a way to afford it another way.
I don’t have it yet, but that’s the approx amount that will show yes. The true value will be less due to tax/NI/pension savings. This includes everything but the electricity (insurance, tyres, servicing, breakdown, etc.)
Cyclone1
Member
Thank you. That’s a lot cheaper than I expected. Through my company car scheme it’s working out around £550 for an M3P after tax etc for 20k miles per year over 3 years, including insurance and servicing. So it could be that Sal sac is the better route if my company offers similar figures as you’ve quoted.
JupiterMan
Active Member
mine is being done through Octopus... deal includes 8000 free miles when switching to Octopus Go tariff.
EDIT:
Some contact details are here:
https://www.octopusev.com/business
JupiterMan
Active Member
I think octopus are the broker, and who sort the sacrifice and finance/order placed through fleet evolution.
Can the business not buy a 'normal' lease or does it need to be specified as a Salary Sacrifice Lease Contract?
I work in a small company so no company cars at present and I'm trying to do the leg work myself, so I've arranged a maintained quote from drive electric (on behalf of company) and will present this to boss/accountant for them to say ok. They pay the lease and deduct from the salary.
I work in a small company so no company cars at present and I'm trying to do the leg work myself, so I've arranged a maintained quote from drive electric (on behalf of company) and will present this to boss/accountant for them to say ok. They pay the lease and deduct from the salary.
JupiterMan
Active Member
Not quite.
Salary sacrifice leases have additional features, such as maternity protection, resignation protection etc, so that if an employee is off on maternity leave, to is fired, long term ill etc, then the employer is not left paying for a car, they can simply return it.
Some salary sacrifice scheme also insist on bundling tyres and maintenance/servicing as well, so that this burden is not left on the employer. Some go further and bundle the insurance too.
Finally you will see salary sacrifice schemes as having their wording / contracts approved by HMRC, if you do a business lease yourself and word your own sacrifice, you may be okay, but the employer loses some protection here if it is done wrong.
You will find the gross salary sacrifice lease costs are much more expensive than normal business leases for these reasons (I suspect they also build in a better profit margin too on salary sacrifice schemes TBH).
Not sure if mentioned elsewhere but I assume company car scheme also enables pooling of insurance across a large population (whereas as a business lease yourself you're just one person/handful of people) - there's a huge amount of data I would expect they have on the (average) risks of drivers in that company. In theory that should or could mean lower insurance costs depending on the demographic, and therefore a net cheaper cost all in.
(Of course there are lots of other benefits/costs to consider if you're the director of a small company, being paid in dividends, taxes avoided etc etc so hard to compare!)
Hi All - Newbie here!
I've been watching YouTube videos about Teslas for a while now and had a test drive of a model 3 long range on Saturday. Wow - what a car!
As I'm only just over a year into a PCP for an Audi A5, it's not really economic for me to change at the moment due to negative equity. However, over the weekend I became aware of the drop in BIK benefits and possibility of salary sacrifice which makes things a bit more possible to do (especially as I'm the CEO of a medium sized charity so have a bit of clout in introducing new stuff!).
I got a quote from Octopus EV today on a 3 year, 15,000 miles deal for a LR with white upholstery. It's a 1+35 deal (meaning no lump sum up front) and excluding VAT it was £596.31. As we're not VAT registered I'm going to have to add that on so it means I'll be sacrificing £8586.86 for the privilege of driving one of these wonderful machines!
I have no idea whether this is a good deal or not, whether I'd be better going direct to Tesla for the lease or whether it's worth shopping around.
If anyone is further down the road on this than me, I'd be grateful for any advice on the subject.
I've been watching YouTube videos about Teslas for a while now and had a test drive of a model 3 long range on Saturday. Wow - what a car!
As I'm only just over a year into a PCP for an Audi A5, it's not really economic for me to change at the moment due to negative equity. However, over the weekend I became aware of the drop in BIK benefits and possibility of salary sacrifice which makes things a bit more possible to do (especially as I'm the CEO of a medium sized charity so have a bit of clout in introducing new stuff!).
I got a quote from Octopus EV today on a 3 year, 15,000 miles deal for a LR with white upholstery. It's a 1+35 deal (meaning no lump sum up front) and excluding VAT it was £596.31. As we're not VAT registered I'm going to have to add that on so it means I'll be sacrificing £8586.86 for the privilege of driving one of these wonderful machines!
I have no idea whether this is a good deal or not, whether I'd be better going direct to Tesla for the lease or whether it's worth shopping around.
If anyone is further down the road on this than me, I'd be grateful for any advice on the subject.
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