Salary Sacrifice for a car and Universal Credit

[MaureenAtHome]

Hi
Please can someone give me advice on what I need to do if I join the work car scheme with NHS Fleet Solutions. I recieve Universal Credit and information online suggests that as my wage slip will show a lower take home pay, then my Universal Credit will increase. I did ring the DWP to ask directly, as surely that would not be right, and the advisor said he had never heard of this before until he googled and then agreed that it would increase, so I cant really trust what I've been told. Do I need to notify the DWP if I join the scheme? If anyone has joined the scheme and also recieved UC please can you advise me?
Thanks
M

I have limited experience with this but in a nutshell if you are on uc do not do it. There are a significant amount of pitfalls here - one being that people tend to think ther are “taking out a car through work”. NHS fleet solutions are a private company, nothing to do with the NHS and at least a few years ago were not regulated by the financial ombudsman. In addition if for whatever reason things go wrong you cannot get out of the contract - I know of people who lost their job Soto ill health and were unable to continue driving but continued to be liable for the payment (which at that point ballooned as the salary sacrifice advantage was gone). It also can impact on your tax code and does impact on your pension contributions.
More importantly- if you claim NHS mileage you will be put on a significantly lower mileage rate ( it is one of the annexes in the AFC terms and conditions handbook).
I would be very cautious. If you really need a brand new car, look at a normal lease and claim mileage.

I have leased for years. Would NEVER EVER do it through a work scheme. Its always more expensive, the mileage rate you get is lower because its considered a company car even though you pay for it.
You may not be able to leave the contract if you change or lose your job.
Are you avoiding leasing privately because of being on UC? If not i'd suggest looking around for a better deal

Thanks for your responses. I dont claim mileage as I am office based and the low mileage that they offer would actually work for me. Financially, it looks like I can get a brand new for around £500, no deposit, insurance and maintenance included. Whereas the same car on a private lease would require over £6,000 deposit. Also my job is very secure. I only plan to be on the scheme once so that woukd impact my pension much. Do you still think its not a good idea?