NHS car scheme

Minstadave said:
Is that on NHS fleet?

The price will depend on how much tax you pay so everyone gets a different price. For me it was £310 for the special offer Ipace S. You could order an HSE but it was £460 ish.
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Yes, it's the £310 special offer one. I've got another salary sacrifice going out which skews the figures a bit, plus I'm obviously earning too little/much* . :p
 
MagicBoy said:
Doubt you'll find a Renault Zoe for £201 a month, just add electrons on a lease deal. Renault main dealer was £329, plus sort your own insurance.

The BIK at the moment makes an EV very attractive if the slight pension hit isn't an issue.
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https://www.gateway2lease.com/cars/...-line-ze-50kwh-auto-RE010564.php?id=440936401 first place I looked, plus insurance. How much are you losing on your pension to keep it balanced? I prefer to drive my new Megane RS for less then £200/month though.


iamdjdz said:
Depends what you want, seems to me the deals are better on high spec stuff used than low spec new.
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Thanks, I'll add it into the consideration next time. I'm not against a used car, just want the numbers to add up for something I want to drive.
 
Trifid said:
https://www.gateway2lease.com/cars/...-line-ze-50kwh-auto-RE010564.php?id=440936401 first place I looked, plus insurance. How much are you losing on your pension to keep it balanced? I prefer to drive my new Megane RS for less then £200/month though.
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Keep in mind the £201 includes road tax, maintenance (inc tyres), insurance for up to 4 named drivers and breakdown cover. It's literally just add fuel or in this case electrons. So for my privately owned car ... that's £65 a month of cost built in to the lease. For one driver and no rubber.

Just under £20 a month off the pension contributions, believe you can arrange to make up the difference through my employer though. (who are not the NHS).
 
Awful awful scheme.
The impact on your pension if you have several cars through the scheme is staggering. Also the way our trust handle the tax on it is leaving many scheme members with significant tax shortfalls that are being collected many months after they were accrued.
PCP's have worked out far better value, and more predictable overall costs than the NHS scheme our trust uses. (Tusker)
 
[TW]Fox said:
You're not driving a new a Mégane RS maintained for less than £200 a month.
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Correct, I didn't go for a maintained one, but did have the option for maintained for less then £200 on a 9+23 profile, obviously excluding insurance but I'm old enough for this to not be a big deal anyway (but apparently not old enough to not add the cup option.)

The NHS scheme would have to be significantly better value for me to consider messing with my pension. What is the cumulative effect from the salary sacrificed over a lifetime?
 
Trifid said:
Correct, I didn't go for a maintained one, but did have the option for maintained for less then £200 on a 9+23 profile,
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So it's really 275 quid a month not less than £200. You can't just pretend the deposit doesn't exist otherwise you may as well just get a Ferrari for a quid a month with a £200k deposit.

Unfortunately you've triggered one of my many pet hates, people who quote attractive lease prices without amortising the deposit.
 
Uh huh. 6 or 9 months is pretty standard for leases and I never said it didn't have a upfront payment. The Mégane is also a class size bigger then a Zoe and it doesn't affect my pension. None of it is alike really but the fact still remains, I'd rather have my Mégane then a Zoe.


The deposit and monthly prices on leases being so clear is one of the reasons I like them. Dealers and PCP could learn a lot from their transparency and ease of comparing different offers.
 
Trifid said:
Uh huh. 6 or 9 months is pretty standard for leases and I never said it didn't have a upfront payment. The Mégane is also a class size bigger then a Zoe and it doesn't affect my pension. None of it is alike really but the fact still remains, I'd rather have my Mégane then a Zoe.
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That's great, but recognise the Mégane costs more. The deposit on the Zoe in question is nil. Your deposit effectively adds £75 a month to the price.
 
Trifid said:
The NHS scheme would have to be significantly better value for me to consider messing with my pension. What is the cumulative effect from the salary sacrificed over a lifetime?
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Really hard to know, it may be minimal (ie reaching lifetime allowance a bit later, not really a big issue) but it all depends on rules that haven't been decided yet.

This was posted on pistonheads, can't vouch for the legitimacy:

"Someone on the previous thread asked me to explain how an NHS lease reduces your pension, with full figures, so I'lll have a go.

The 2015 pension scheme, which anyone under around 57 years old is now on, is a career average based scheme. It is calculated by dividing your annual salary after each financial year by 54, and that amount goes into a 'pot'. You will have extra pots after every subsequent financial year. Each pot is revalued every year, at 1.5% above inflation, so if inflation was 2% in the last year, all the pots are revalued by 3.5%. Once you retire, all the pots are added up, and the total is paid to you annually.

As an example, someone earning 40K throughout their career of 10 years would gat the following pension (ignoring any future inflation):

Year 1: 40,000/54 = £740 compounded by 1.5% for 9 years = £846.11
Year 2: 40,000/54 = £750 compounded by 1.5% for 8 years = £833.60
Year 3: 40,000/54 = £750 compounded by 1.5% for 7 years = £821.29
Year 4: 40,000/54 = £750 compounded by 1.5% for 6 years = £809.15
Year 5: 40,000/54 = £750 compounded by 1.5% for 5 years = £797.19
Year 6: 40,000/54 = £750 compounded by 1.5% for 4 years = £785.41
Year 7: 40,000/54 = £750 compounded by 1.5% for 3 years = £773.80
Year 8: 40,000/54 = £750 compounded by 1.5% for 2 years = £762.37
Year 9: 40,000/54 = £750 compounded by 1.5% for 1 year = £751.10
Year 10: 40,000/54 = £750 compounded by 1.5% for 0 years = £740

Once you add the 10 pots up, it gives an annual retirement income of £7920.02



If someone takes out an NHS car lease of £300/month, that means their salary drops by £3600 to £36,400. So the pot that year will drop from £740 to £650, a £90 decrease, and will be decreased by the length of the lease e.g. 3 year lease = £90x3 = £180 less a year in NHS pension. If a person has 30 years left in work before retiring, that £180 would have been rebalanced every year by at lease 1.5%. That gives £240 less a year.

£240 doesn't sound that much, but that's £4800 on a 20 year retirement, and if you have multiple leases if can add up to much more than that.

It MAY be worth it for higher rate tax payers to take put an NHS lease, but I wouldn't do it as a 20% tax payer myself."
 
Minstadave said:
Really hard to know, it may be minimal (ie reaching lifetime allowance a bit later, not really a big issue) but it all depends on rules that haven't been decided yet.

This was posted on pistonheads, can't vouch for the legitimacy:

"Someone on the previous thread asked me to explain how an NHS lease reduces your pension, with full figures, so I'lll have a go.

The 2015 pension scheme, which anyone under around 57 years old is now on, is a career average based scheme. It is calculated by dividing your annual salary after each financial year by 54, and that amount goes into a 'pot'. You will have extra pots after every subsequent financial year. Each pot is revalued every year, at 1.5% above inflation, so if inflation was 2% in the last year, all the pots are revalued by 3.5%. Once you retire, all the pots are added up, and the total is paid to you annually.

As an example, someone earning 40K throughout their career of 10 years would gat the following pension (ignoring any future inflation):

Year 1: 40,000/54 = £740 compounded by 1.5% for 9 years = £846.11
Year 2: 40,000/54 = £750 compounded by 1.5% for 8 years = £833.60
Year 3: 40,000/54 = £750 compounded by 1.5% for 7 years = £821.29
Year 4: 40,000/54 = £750 compounded by 1.5% for 6 years = £809.15
Year 5: 40,000/54 = £750 compounded by 1.5% for 5 years = £797.19
Year 6: 40,000/54 = £750 compounded by 1.5% for 4 years = £785.41
Year 7: 40,000/54 = £750 compounded by 1.5% for 3 years = £773.80
Year 8: 40,000/54 = £750 compounded by 1.5% for 2 years = £762.37
Year 9: 40,000/54 = £750 compounded by 1.5% for 1 year = £751.10
Year 10: 40,000/54 = £750 compounded by 1.5% for 0 years = £740

Once you add the 10 pots up, it gives an annual retirement income of £7920.02



If someone takes out an NHS car lease of £300/month, that means their salary drops by £3600 to £36,400. So the pot that year will drop from £740 to £650, a £90 decrease, and will be decreased by the length of the lease e.g. 3 year lease = £90x3 = £180 less a year in NHS pension. If a person has 30 years left in work before retiring, that £180 would have been rebalanced every year by at lease 1.5%. That gives £240 less a year.

£240 doesn't sound that much, but that's £4800 on a 20 year retirement, and if you have multiple leases if can add up to much more than that.

It MAY be worth it for higher rate tax payers to take put an NHS lease, but I wouldn't do it as a 20% tax payer myself."
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Thanks for detailing it, I didn't realise it had such an effect. My wife is 34 so 20-30 (or maybe 40:p) Years till retirement.
 
so, there's no option to increase the overall salary sacrifice percentage into the combined car+pension pot, and thus maintain pension,
you don't get something for nothing
 
after rambling nonsense to @Minstadave I called my wife's HR who stated every NHS employer will contribute based on their would-be pension contributions - but this amount varies from NHS employer to NHS employer.

Every NHS employer HR can do a calculation for an individual if they contact them directly to let them know the impact on pension pot + pension income

apparently some options can have an impact of up to £12k over 3 years, so quite significant
 
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