Salary sacrifice for vehicle and pensionable pay

[helidoc]

Does anyone know if a salary sacrifice scheme for a car will affect pensionable pay, when contracted hours include non-pensionable work?

There has been an explosion of Jaguar iPace, Audi eTron, Tesla amongst my work colleagues, and looking at NHS fleet, the net cost of these is about £300 per month, which looks like a steal

I know salary sacrifice reduces pensionable pay, but I am contracted to 48h a week (12x4h sessions), and only the first 10 of these (40h). Are pensionable They way I read it, the car salary sacrifice would use up half of one of the extra sessions gross, so wouldn’t impinge on pensionable pay. Have I got that right? I don’t know if the sacrifice affects pensionable pay irrespective of contracted extra work

Grateful for any insights

Many thanks

Dave


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[helidoc]

Just had an answer via an NHS forum. It does reduce pensionable pay.

D


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[David_D]

Thought that salary sacrifice for "company" cars was being done away with:

https://www.moneyadviceservice.org.u...rom-april-2017


"Employees enrolled in a car, accommodation or school fee salary sacrifice agreement, before 6 April 2017, will be protected until the end date of their agreement, or until 5 April 2021, whichever is sooner."

[Suds]

Ah, I guess your NHS pension is now career averaged rather than final salary.

[helidoc]

Ah, I guess your NHS pension is now career averaged rather than final salary.

Not quite. First 25 years were based on best salary for the last 3 years, but everything from 2015 was career average. There is a consultation where I might get to opt back in to the old scheme from 2015-21

Prices are unbelievable, a Tesla 3 is £310 inc insurance and serving. I’m working on a man-maths spreadsheet. I think I will lose £2200 pension growth per year, but might trigger an annual allowance charge at the end.

D


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[helidoc]

Thought that salary sacrifice for "company" cars was being done away with:

https://www.moneyadviceservice.org.u...rom-april-2017


"Employees enrolled in a car, accommodation or school fee salary sacrifice agreement, before 6 April 2017, will be protected until the end date of their agreement, or until 5 April 2021, whichever is sooner."

I think ULEV will continue, partly to incentivise them. BIK is 0%

D


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[bloater]

Who do NHS fleet use as a provider? My wifes scheme is with Tusker and the deals are nowhere near that good.

[Suds]

At your age you might have a good chance of reverting to final salary imo - just a thought. If you are likely to hit the maximum pension pot before you retire then perhaps the salary sacrifice won't actually affect your pension because the pot will be maxed out anyway?