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I have come to the conclusion, that the cheapest way into a Tesla 3 LR will be through a salary sacrifice scheme starting in the next year when BIK will be zero for ultra low emission cars. As the lease is taken before tax, it will be significantly cheaper than any other way of getting one.

So, now the real challenge, convincing my employer to start a scheme. Does anyone have a recommendation of any Salary Sacrifice Car Scheme providers?

Any experiences you have will be great as well.

P.
 

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With a zero bic is it really the case that with a sal sac scheme you are effectively leasing the car out of pre tax salary and saving the vat?! [I understand that sal sac is only available on this basis for a ZE vehicle]
 

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I'm not crazy, the attack has begun.
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I have come to the conclusion, that the cheapest way into a Tesla 3 LR will be through a salary sacrifice scheme starting in the next year when BIK will be zero for ultra low emission cars. As the lease is taken before tax, it will be significantly cheaper than any other way of getting one.

So, now the real challenge, convincing my employer to start a scheme. Does anyone have a recommendation of any Salary Sacrifice Car Scheme providers?

Any experiences you have will be great as well.

P.
I don't believe salary sacrifice is affected by the BIK.

BIK is there if you are given the car, not if you are paying for it. The salary sacrifice benefit is that you are paying for it before tax and NI rather than after it.

Maybe I am wrong but I think you've conflated two different things there.
 

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i3 with Range Extender (EREV) Sept 2014
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I don't believe salary sacrifice is affected by the BIK.

BIK is there if you are given the car, not if you are paying for it. The salary sacrifice benefit is that you are paying for it before tax and NI rather than after it.

Maybe I am wrong but I think you've conflated two different things there.
BIK does apply with the schemes.
 

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I don't believe salary sacrifice is affected by the BIK.

BIK is there if you are given the car, not if you are paying for it. The salary sacrifice benefit is that you are paying for it before tax and NI rather than after it.

Maybe I am wrong but I think you've conflated two different things there.
It attracts BIK as it is the employer who it providing the car and they pay for it out of employee pre tax earnings.

It is treated the same as a company car in all aspects, they are only viable on EVs since HMRC decided that if you were better off with salary sacrifice then they would recoup the incremental gain.

Low emission vehicles from memory <75g CO2 were excluded, to direct people to cleaner vehicles
 

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Discussion Starter #7
Thanks, for the above. Yes, you still have to pay BIK, but EVs are definitely 0% next year and as @Biffa says, they may have been exempt already.

My early estimate is about £500/month for a Tesla 3 LR with no deposit. So it is worth seeing if I can get my employer to adopt a scheme, particularly as we have a carbon neutral vision.

If anyone has experience of providers I can speak to, please let me know.
 

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Does Cycle2work scheme count?
This year's has just gone up and you can get an EV bike.
I think the emissions are below the threshold too.
 

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Does Cycle2work scheme count?
This year's has just gone up and you can get an EV bike.
I think the emissions are below the threshold too.
That is a form of cycle to work scheme, however was a bit limited, whether that is the implementation we have via work or not, but limit £1,000 and in our scheme we have to use Halfords. :(

Been looking at these : https://greencommuteinitiative.uk since there is no £1,000 limit

Since as the £1,000 limit is now raised then some rather tasty e-bikes start to become ever so affordable and likewise my 25 mile commute seems doable on a decent e-bike :)

Not affiliated with (green commute initiative) them at all, however was currently trying to convince HR to have a conversation with them to take them onto the flexible benefits scheme :) But with the new news of the ceiling being raised it means we just have to remove the Halfords only rule and all good.
 

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Hitachi Capital offer a scheme and have a good web page explaining including the fact that they do attract a BIK liability, albeit it will be a nil rate on an EV for 2020/21. (I have not used them and is not a recommendation)

 

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Hitachi Capital offer a scheme and have a good web page explaining including the fact that they do attract a BIK liability, albeit it will be a nil rate on an EV for 2020/21. (I have not used them and is not a recommendation)

Im looking at Hitachi as that's my work scheme. Only EVs on it are Leaf, i3 and Golf I think. Hoping they get Tesla, Hyundai and Kia as a minimum more.

Ive seen Octopus mentions salary sacrifice
 

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I'm also looking at this as the best option and this thread is really useful.
What happens if you change jobs, or are made redundant? Do you have to take on the full payments directly?
 

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I'm also looking at this as the best option and this thread is really useful.
What happens if you change jobs, or are made redundant? Do you have to take on the full payments directly?
This is why some companies were reluctant, but I believe some schemes protect the employer.

Generally the employee is not allowed to take over the lease because it is a BCH. The lease company may be prepared to offer a new PCH directly, but not all providers will due to higher risk (and legislation) of dealing with consumers.
 

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I've just ordered an Ioniq and my.employer uses SG Fleet. They have been really good. If anything happens in my employment, it will revert back to standard lease so need to be prepared for that.
 

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Im looking at Hitachi as that's my work scheme. Only EVs on it are Leaf, i3 and Golf I think. Hoping they get Tesla, Hyundai and Kia as a minimum more.

Ive seen Octopus mentions salary sacrifice
I looked at Hitachi there were lots of options on their main site. Tesla wasn’t on the list however. More or less everything else was. Some interesting pricing in places. Kona was significantly ( near £300) more expensive per month than iPace.
 

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Hi
Does salary sacrifice have to be through a scheme I’m looking at making a £200 contribution gross and my employer paying £500 can this work? Just ring HMRC no help
 

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Hi
Does salary sacrifice have to be through a scheme I’m looking at making a £200 contribution gross and my employer paying £500 can this work? Just ring HMRC no help
Yes you need a scheme. Because they are no longer particularly beneficial except for ULEVs it can be difficult to get a smaller company to offer. Your contract of employment needs changing and your contribution has to be deducted from your salary by your employer and HMRC provide a guide for employers.

 

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Hi thanks for that still not very clear I only want to top up my employers contribution to get a better car. In the advice it talks about you paying the whole amount as the salary sacrifice
 

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Hi thanks for that still not very clear I only want to top up my employers contribution to get a better car. In the advice it talks about you paying the whole amount as the salary sacrifice
That will be a staightforward contribution, typically that contribution would be used to effectively reduce the BIK, however if you are getting an EV with 0% BIK it doesn’t have anything to be offset against. :(

In addition that £200 would be net, it is only via an approved scheme could it be taken at gross value.
 
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