Electric cars-got to be a viable option now?

[RickChard]

Not wishing to sound like a neanderthal but I'm not sure I get the BIK benefits?

As a 40% tax earner, throwing 25% of my salary into pension, am I going to benefit greatly but getting a company car? I've never had one. There seems to be some SUPER deals on Mercedes cars at the moment.

For example "Mercedes-benz EQA Hatchback EQA 250+ 140kW AMG Line Executive 70.5kWh 5Dr Auto" for £394 net. Does the BIK at 2% mean I'm paying 2% tax instead of 40% tax, or am I completely off the mark??

[gunner]

Not wishing to sound like a neanderthal but I'm not sure I get the BIK benefits?

As a 40% tax earner, throwing 25% of my salary into pension, am I going to benefit greatly but getting a company car? I've never had one. There seems to be some SUPER deals on Mercedes cars at the moment.

For example "Mercedes-benz EQA Hatchback EQA 250+ 140kW AMG Line Executive 70.5kWh 5Dr Auto" for £394 net. Does the BIK at 2% mean I'm paying 2% tax instead of 40% tax, or am I completely off the mark??

The 2% BIK means you effectively pay for the lease out of your gross salary rather than your net.

[MB2]

Not wishing to sound like a neanderthal but I'm not sure I get the BIK benefits?

As a 40% tax earner, throwing 25% of my salary into pension, am I going to benefit greatly but getting a company car? I've never had one. There seems to be some SUPER deals on Mercedes cars at the moment.

For example "Mercedes-benz EQA Hatchback EQA 250+ 140kW AMG Line Executive 70.5kWh 5Dr Auto" for £394 net. Does the BIK at 2% mean I'm paying 2% tax instead of 40% tax, or am I completely off the mark??

The BIK means they "add" 50k (list price of the car) to your salary (every year) but you (currently) only pay tax on 2% of it so it effectively adds 1000 to your salary that you will pay tax on.

As you are paying the lease out of your income (pre tax) the 400 lease per month effectively costs you 240 of your take home pay (assuming the 400 a month keeps you in the 40% bracket).

If you look what you could lease after tax for 240 a month it is a very cost effective way of driving a brand new car.

Of course you might prefer to spend 3k a year of your own money on the car of your choice.

Bear in mind the BIK increases by 1% each year now so the 1000 will become about 3000 by the end of the lease that you will pay tax on.