Salary sacrifice-car scheme

[_V_]

Probably easier to find a well paying perm role in a big company. Most large companies offer salary sacrifice car schemes to their employees and has been pointed out the BIK for an EV is 2%.

One of the benefits of a permie life, along with the pension matching, private healthcare, death in service payment etc.

[AllenSmith81]

Got all excited,

I am with Giant right now and have a car through Tusker but Giant have decided to end their participation in the scheme.

trying to find another umbrella in the scheme, or one like it, is near on impossible!

had anyone here found anyone else doing this benefit?

[eek]

I think you’re missing the point. You can sacrifice your salary to lease an ev. Say a Tesla model 3 is £500 pm on lease, this comes out of your gross salary and is, effectively. A company car. Many schemes allow early returns of the car too.

so, if you’re a higher rate tax payer, you save 40% on the lease cost. Effectively it costs you £300 pm. You pay company car tax, but EVs are very low tax (about 2%).

try carwow, but you won’t save 40%.

Given that this is about Umbrellas why are you posting about a scheme that no umbrella has been able to offer because none of the lease firms are interested?

It also means that you need to remain an employee of the umbrella firm for the entire period of the car lease - which may result in you having to pay the umbrella a fee even when you are not working through them.

* don't know if Giant are still offering such a scheme but I can't be bothered to hunt it down - I know the umbrella's I'm talking to don't as it's a scheme I would talk about were it practical.

[WTFH]

I think you’re missing the point. You can sacrifice your salary to lease an ev. Say a Tesla model 3 is £500 pm on lease, this comes out of your gross salary and is, effectively. A company car. Many schemes allow early returns of the car too.

so, if you’re a higher rate tax payer, you save 40% on the lease cost. Effectively it costs you £300 pm. You pay company car tax, but EVs are very low tax (about 2%).

try carwow, but you won’t save 40%.

Hi Bobby, welcome. Nice to see an old thread being bumped.

You've missed my point - the poster suggested they could pay off a 3 year lease in 6 months. No you can't. A 3 year lease needs to be paid over 3 years. It's not like a personal contract plan or personal contract hire. That was my point.

[BobbyD]

If you're wanting to have a brand new car and save money on it, use somewhere like Carwow to get quotes from dealers.

I think you’re missing the point. You can sacrifice your salary to lease an ev. Say a Tesla model 3 is £500 pm on lease, this comes out of your gross salary and is, effectively. A company car. Many schemes allow early returns of the car too.

so, if you’re a higher rate tax payer, you save 40% on the lease cost. Effectively it costs you £300 pm. You pay company car tax, but EVs are very low tax (about 2%).

try carwow, but you won’t save 40%.

[WTFH]

This is a significant saving you could pay the three years lease in say a six months contract and the net cost for leasing the car could be considerably less over the three years due to the saving on tax and ni.

Except leasing a car is not like financing it on PCP/PCH/ etc, where you can "pay it off early" and then own the car early.
With a lease, the car is never yours and is always going back. You might be able to agree a sale price at the end of the lease term, but that would be separate to the lease and is dependent on other factors.
Without even considering how you are employed, the terms of a lease are a fixed timeframe with a set monthly payment over that timeframe, overpaying or paying off early are not options.

If you're wanting to have a brand new car and save money on it, use somewhere like Carwow to get quotes from dealers. Get a quote for cash, and a quote for finance. If you go with finance, they will normally offer you a further discount off the cash price (which they get back in the interest anyway), but you drive out the door and then pay off the car, cancelling the finance within 14 days - no interest payable. That can save you another 5% on the price.

Also, if you want a new car, try to keep the list price of (car + all extras you order) to under £40k, otherwise you get stung with an extra £310 per year in RFL for the first 5 years.

[GhostofTarbera]

It’s an good idea but remember

Lots of clients will have a strict umbrella list (pick someone from this list of 5) so we might have to move umbrellas every few months (I know one chap that is with 3 different umbrellas with 3 different concurrent clients)

Good idea if you are a high paid temp with same client for years and can use giat umbrella (I see you also get cheap cinema tickets from them)


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[acted]

I understand we may only be on a contract for a short period but a lot of us reading the forum earn good day rates. If forced down using umbrella. giant allow you to save on ni and tax to lease a car. This is a significant saving you could pay the three years lease in say a six months contract and the net cost for leasing the car could be considerably less over the three years due to the saving on tax and ni.

I am interested to understand if others have explored this tax saving opportunity? Has anyone got any experience using this scheme at giant or know of any other umbrellas?

I understand this won’t be for everyone but if you want a new car and earn a high day rate it seems to be good option to add to the £40k in pensions.

[northernladuk]

Because their job is to provide minium services to you for a very low payment. No bells and whistles. They might be your employer but they aren't there to give you benefits and make you a good happy employee like a normal employer.

Many people don't stay long either. The big ones that are in the FCSA cartel are OK as they will always be on the approved list. The more middling ones won't always be so if you go to the next gig you might need to leave the brolly so they won't want to entertain long term benefits.

[acted]

Hi all,

I am interested in finding out more about salary sacrifice schemes via umbrella companies that allow you to lease a car and benefit from saving tax and ni.

Currently I know GIANT offer this. Has anyone had any experience using the scheme? Do you save employer ni as well as employees ni?

With the new bik rates for electric cars why are not more umbrella companies offering this?
If there are more companies offering this which ones?

Thanks