Is a Car Salary Sacrifice Scheme Right for You? | Pros and Cons Explained

Considering a salary sacrifice scheme for a company car but unsure if it's the right choice? Josh, founder of Motorlet, breaks down the pros and cons to help you decide. Discover potential tax savings, convenience, and eligibility requirements. Learn about the impact on borrowing capacity, BIK implications, and tips for choosing the right vehicle.
At Motorlet, we're here to guide you in understanding and selecting the right salary sacrifice scheme. For expert advice, get in touch or leave a comment below.
www.motorlet.co.uk/

[@nathanbrown2640]

Slightly different scenario - i have been starting using a salary sacrifice scheme for pension contributions.
The impact hasnt been as good as i hoped:
- reduced salary meant reduced auto-enrolment contributions
- reduced salary meant pro-rated reduced bonus from company bonus scheme
- reduced flexibility to adapt payments to current needs (i.e. i can't change the amount oer month in the way that personal direct pension contributions can be changed each month)
- NI dropping from 12% to 8% means reduced effect of pre-tax donations
- reduced salary means lower potential mortgage available (no as relevant currently)
- declaring pension contributions to HMRC ahead of time meant they reduced my tax code to ensure i wasnt overpaying tax by year end
So the advisce at the end of "if it is right for you" is very relevant

[@edwardhodson6493]

For anyone on a defined contribution pension, I guess their pension contributions would decrease as a result of salary sacrifice car financing?