Reply to: salary sacrifice car lease through umbrella company (on.to)

[eek]

Hence my question about NCD, etc, and how it would work when your contract ends.

Same as it would do with any other company car lease where the company provided the insurance. A slight hassle but not much of...

[WTFH]

I always wonder what drives people to give such comments on this forum. Just because I'm trying to save £££ doesn't mean i can't afford something.

Hence my question about NCD, etc, and how it would work when your contract ends.

[northernladuk]

But that's irrelevant here. The question was if there is umbrella doing salary sacrifice for a car lease. It doesn't matter if my intention is to drive Zoe or e-tron gt.

True but heaven forbid a post on CUK strays off topic.

Maybe post the next umbrella question in the Umbrella forum though

[fabios]

But it's not showing total cost of ownership. It might even be the more expensive the car the better the savings but who knows until you put some real numbers for real cars that you would actually get.

But that's irrelevant here. The question was if there is umbrella doing salary sacrifice for a car lease. It doesn't matter if my intention is to drive Zoe or e-tron gt.

[northernladuk]

The idea of picking up the cheapest car is to show how cheap it is when you compare to owning any car. 700miles + servicing + tax + insurance for £250 you don't have to pay when you own a car. Tesla 3 new is £45k, you can buy for cash if you don't invest your surplus but if you do you have to take into account potential loss of earnings.

But it's not showing total cost of ownership. It might even be the more expensive the car the better the savings but who knows until you put some real numbers for real cars that you would actually get.

[fabios]

Everyone is comparing the cheapest cars though. I can't believe there are many contractors going to be picking a Renault Zoe as a company car. Pick something more realistic and then run the numbers. Tesla Model 3 or Audi Q5 at a grand a month... starts to not look like a very good deal even with tax savings at those figures. If you are WFH and don't go far it would be cheaper to use a limo service.

The idea of picking up the cheapest car is to show how cheap it is when you compare to owning any car. 700miles + servicing + tax + insurance for £250 you don't have to pay when you own a car. Tesla 3 new is £45k, you can buy for cash if you don't invest your surplus but if you do you have to take into account potential loss of earnings.

or.... just a thought.... if OP can't afford to lease a car personally then how about buying an old banger?

I always wonder what drives people to give such comments on this forum. Just because I'm trying to save £££ doesn't mean i can't afford something. We all could have used umbrella long before ir35 update and yet so many of us chose to ltd.

[northernladuk]

The formula is missing the expected cost of fuel. If the lease is for 10000miles then try adding in fuel at the current rates, in line with your expected use, to give a true total.

Electric vehicles seem to generally cost more than the equivalent fossil fuel car as they know you'll being paying peanuts to charge it.

Fair point but I was talking about everyone banding the numbers for the smallest car they do which I doubt anyone will be taking anyway so not a realistic estimate.

[agentzero]

Everyone is comparing the cheapest cars though. I can't believe there are many contractors going to be picking a Renault Zoe as a company car. Pick something more realistic and then run the numbers. Tesla Model 3 or Audi Q5 at a grand a month... starts to not look like a very good deal even with tax savings at those figures. If you are WFH and don't go far it would be cheaper to use a limo service.

The formula is missing the expected cost of fuel. If the lease is for 10000miles then try adding in fuel at the current rates, in line with your expected use, to give a true total.

Electric vehicles seem to generally cost more than the equivalent fossil fuel car as they know you'll being paying peanuts to charge it.

[Lance]

Everyone is comparing the cheapest cars though. I can't believe there are many contractors going to be picking a Renault Zoe as a company car. Pick something more realistic and then run the numbers. Tesla Model 3 or Audi Q5 at a grand a month... starts to not look like a very good deal even with tax savings at those figures. If you are WFH and don't go far it would be cheaper to use a limo service.

or rent by the week as needed.

or.... just a thought.... if OP can't afford to lease a car personally then how about buying an old banger?
this for example https://www.autotrader.co.uk/car-det...02206106669060
Costs around the same as 1 months lease and has MOT for 6 weeks.

or push the boat out
https://www.autotrader.co.uk/car-det...02206126715327

I really don't get the fascination with leasing cars as a way to make them affordable, when there are better ways.

[northernladuk]

Renault zoe, either personal or business is £489. As a salary sacrifice it's around £300 for +100k earners, i also believe that what they show in calculation as employer's saving is also our saving, so it drops the price to sth around £250. This includes charging, 700miles, insurance and tax. Given the current petrol/diesel prices looks like a good deal.

Everyone is comparing the cheapest cars though. I can't believe there are many contractors going to be picking a Renault Zoe as a company car. Pick something more realistic and then run the numbers. Tesla Model 3 or Audi Q5 at a grand a month... starts to not look like a very good deal even with tax savings at those figures. If you are WFH and don't go far it would be cheaper to use a limo service.

[WTFH]

But it's £899 from your before tax (and before employer NI / Apprenticeship levy) income. Which means it's going to cost £500 or so take home pay...

And as no umbrella is going to risk committing to a 24+ month lease any the only option available will be short term lease / monthly subscription type deals...

I understand that no umbrella is going to commit, who can blame them. If the car is leased through the umbrella and your contract finishes, then would the car be returned immediately, and where are you left, but with no car and nothing to show for it. Do you get an NCD on your insurance as a result of leasing this way?

[eek]

Is the tax saving worth the extra cost?
Looking at the rates companies charge for 1 month leasing, is it really worth the possible tax saving, given hat as soon as you are out of contract you'll have no car to go to interviews etc?
I'd want to run the figures and see if it was viable, also the figures they quote on the personal lease, they appear to have gone with comparing their cheapest option with the most expensive lease available.
e.g. VW ID4 - On To are £899 a month and say that 24 months leasing is £837 based on 7,500 miles, while the same car is available on 10,000 miles for £730 on leasing websites

But it's £899 from your before tax (and before employer NI / Apprenticeship levy) income. Which means it's going to cost £500 or so take home pay...

And as no umbrella is going to risk committing to a 24+ month lease any the only option available will be short term lease / monthly subscription type deals...

[fabios]

Renault zoe, either personal or business is £489. As a salary sacrifice it's around £300 for +100k earners, i also believe that what they show in calculation as employer's saving is also our saving, so it drops the price to sth around £250. This includes charging, 700miles, insurance and tax. Given the current petrol/diesel prices looks like a good deal.

[WTFH]

Is the tax saving worth the extra cost?
Looking at the rates companies charge for 1 month leasing, is it really worth the possible tax saving, given hat as soon as you are out of contract you'll have no car to go to interviews etc?
I'd want to run the figures and see if it was viable, also the figures they quote on the personal lease, they appear to have gone with comparing their cheapest option with the most expensive lease available.
e.g. VW ID4 - On To are £899 a month and say that 24 months leasing is £837 based on 7,500 miles, while the same car is available on 10,000 miles for £730 on leasing websites

[fabios]

And there are other threads on the same theme if you use the google search method as described in a sticky in the FAQ/Welcome section

I did. That thread is focusing on why it's not possible for a standard lease. What I'm asking about is a 1-month lease so no risk for the leasing company of loss of employment. Also, I no longer see it as a benefit on giant's website.

Update: just spoke to giant and it's no longer available.