Computer Scheme at DH's work. Tax Savings, but is it worth it????

[FangAche]

My old company did this too, but I didn't think it was that great a deal. Now DH's company are doing the same scheme.

You lease a PC for 3 years paying the money out of your salary each month..... the deal is that on that amount of money you don't pay tax or NI. SO a PC that would normally cost you £900 ends up only costing you £531 over 3 years.

FANTASTIC I hear you cry??!

There's a catch..... after the 3 years the form says and I quote:
"The leasing company (Dell) assure us that they will then sell you the PC at a fair market value (around £40) or dispose of it for £40"

WTF? So after 3 years they could say that if we want it we have to £200 for it... or more.... or less! Or they could just make us hand it back!

I mean in reality that probably won't happen, but its the fact that its all left up in the air like that..... they are just making a verbal promise to let you keep the PC for £40.

Has anyone got a PC through their Employer in this way?

Part of me thinks NO WAY! But when I think that in that 3 yrs you also have a full warranty stating that if the PC breaks down they will send somebody to your house in 1 working day! Thats a good warranty.... and worth alot of money.

Just not quite convinced though.

TIA

We are doing this - so I can have a laptop downstairs to come on here and do e-mail ! Seemed silly not to at the price we are paying !

Thanks Scatterbrain.

We've signed up for it. And a printer too.

Anyone else took their employer up on this deal?

DH works for Tesco BTW and I used to work for Balfour Beatty..... they both do this tax saving scheme.

We're doing this. And as I'm on maternity leave I shouldn't have to make payments until I'm back at work (although silly work have taken the payment out this month .)

I work for a medium sized accountancy firm

Picc Circus - But did you think it was a great "can't lose" offer????

I'm a bit wary about their lack of committment to sell you the damn thing.

DP is doing this - not aware of any 'sell it' aspect at the end!

I get worried about the salary sacrifice on these schemes. According to Inland Revenue rules, you sacrifice this amount of your salary FOREVER (it's the same with the nursery vouchers). Don't think they've ever actually enforced this, but what if they decide to?

Thing is that at the end of 3 years it's 3 years out of date anyway so you might as well get another new one

(Well, as long as you can retrieve from it what you need before it goes back.)

Janh - But at least if I owned the PC after 3yrs I coudl sell it for a a couple of hundred! Or keep the monitor etc etc. The PC I have at home died a few months ago aged 7yrs old!

Blu - Read the small print about the end of the lease period!

It wouldn't be worth a couple of hundred though, toothy - a new one of similar power would only be a couple of hundred, that's how it's going. I know they do go on for years, DD1 used our 1996 one until last year, but all it was good for by then was typing and playing solitaire and it had cost over £1000 new

Janh - I bought mine 2nd hand when it was 3 yrs old and I paid £300 for it! And at the time it was a good deal. THe PC we are getting is worth £950 retail. Even if I just sold it for the parts so it could be reconditioned I would still get something for it.

Ours cost £1200 in June 03 - it is a Dell, can't remember its number, 2300 or something? - the basic system was less but we added 17" flat screen, extra memory, cordless keyboard etc. Nobody would give us £200 for it now! (Well I don't think so, if you know anyone who might please point them this way)

JanH - I know places that would buy the 17" flat panel screen for about £75!

weve just signed up for it with DH work.
From what I can gather with the small print at the end of the 3 years we can give it back and must pay 40-75.00 to dispose of it based on the model we chose or we keep it and have to pay 75.00
If we were to buy the same pc on a normal hire agreement it would cost 43.40 per month but because were saving NI and tax its costing 29.08 per month.