RE: Unsustainable Public Sector Pensions24 May 2025 21:38
Nu
"Put an end to Salary Sacrifice Car Schemes"
Tusker is a no deposit monthly car lease scheme, you dont own the car. If you want to purchase it you'll have to offer a big lump sum cash (and taxed) payment at the end of the lease. You also pay tax on it as a benefit in kind. The reason for the high prevalence of electric vehicles is because the tax rate is based on the emissions, so zero emissions reduces this tax considerably. Schemes like this enable people to drive new cars or nearly new cars that cost more than they can afford to buy. Whether you like electric cars or not, I dont really agree with your argument. Salary sacrifice also has the downside of reducing pension benefits for the employee if they are in a DB scheme. It tends to increase in appeal the higher your salary ie higher rate and additional rate tax payers would find it significantly more attractive than people paying the basic rate. Some people also like the fact that everything except fuel and oil is paid for, all the other bills eg. insurance, servicing, breakdown etc are included. Tusker offers the UK’s widest selection of EVs, ULEVs (and petrol) cars on an employee car benefit scheme. I think it plays a very small part in Lloyds business, but its a diversification thats worth having. The NI and tax issues your objecting over are mitigated by the economic benefits from higher sales. And it isn't salary sacrifice thats rigged in favour of EV's, it's the Company Car tax laws.