Hi Forum, just wondered if anybody had entered a salary sacrafice scheme to obtain a lease car whilst on an IVA, basically my car is shot at and I work within the NHS and could enter the scheme.Does anybody know if you are allowed to do this whilst in an IVA, I do know that credit checks etc are not required. I would not be asking for a reduction in my monthly payments towards my IVA but the allowances I get for car ins, tax, maint etc be allowed to go towards these payments. any advice would be of great help
I've no idea on this but hopefully one of our experts will be along to advise shortly.
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Hi there, yes I have a lease car through the NHS salary sacrifice scheme, I got mine during the proposal stage though and it was built into my IVA from the off, as long as it doesn't affect your IVA payments then i shouldn't think it would be a problem.
Mrs Size works in the NHS and I have been looking at this scheme just recently as we need to replace the old Austin 7 with a newer model. It is, for all intents and purposes, a very cost effective scheme, as taking payment from gross salary can mean great savings when compared with paying for a car from net salary. There are, in the NHS scheme, costs to be saved by less Income Tax, less N.I., less SuperAnn, and also the cost of tax , insurance and maintenance costs are covered as well. It is also true that the costs do depend somewhat on pay level, grade, hours worked etc as well.
However, the end result is still the same. A significant loss in take home pay is to be expected. Whilst some of this can be offset,see above, the question may well turn out to be one of how can you keep your payments up with less coming in? You need to speak to your IP and see what you can come up with between you.
Regards.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
I've got several client who have done this - and my best friend who is a nurse also has one. I think it is a really good scheme, and he has a fab brand new car to show for it which is important as he is a district nurse and does a lot of travelling. Weigh up the costs advantages and disadvantages, and if entering into the scheme seems the most cost effective method of funding your transport have a chat with your IP - especially if this is going to affect your disposable income.
thanks everybody, I have contacted my IP and have had a speedy reply as always (Melanies team) and they would like some figures when I submit my Income/expenditure this week.I Hope this is ok as having a very loud knocking sound every time you get in the car really makes you sick to the stomach praying its going to get from A to B.
Hopefully if I am allowed to offset my allowances for car insurance, tax, maint and fuel savings,I know I am probably going to have to find some money out of my disposable income but not much I can do as I need a car to get to work (60miles a day) and no car no job lol, thanks again everybody
I had a car lease scheme with the NHS which was allowed with my IP's permission. What I hadn't banked on was changing jobs and having to come out of scheme, pay a penalty and then get funding for a new car. My IP was happy as long as I was able to maintain payments, which I have been.
Sorry jacko001 - I did not realise that you were one of my clients. Glad you got the answer you needed from the team - please use them as a first point of contact for any further queries you may have about your case generally.
