Smart’s Post

Want to find out how you could save with a novated lease? You can pay for your car expenses using a combination of your pre and post-tax salary. This could reduce your taxable income and the amount of tax you pay, saving you thousands! #novatedleasing #emplyeebenefits #salarysacrifice

Novated Leases: A novated lease is a popular car financing option in Australia, especially for employees. It involves an agreement between you, your employer, and a finance company, allowing you to lease a car with pre-tax salary deductions. This can result in significant tax savings and lower monthly payments. The employer manages the lease payments, which simplifies the process for you. However, it's important to understand the terms of the lease and any potential impact on your employment situation. Novated leases can be a cost-effective way to drive a new car while enjoying tax benefits. To learn more about novated leases and see if they're right for you, call 0410845111 or email info@loandrive.com.au. #NovatedLease #CarLeasing #TaxSavings #EmployeeBenefits #Australia

#SalarySacrificing #EV #CarLeasing #FinanceTips Hey everyone! 😊 I’m thinking about getting an electric vehicle (EV), and my friends have thrown around the idea of salary sacrificing to help cover some costs. They say it could include things like insurance, fuel, maintenance, and even tires—all under a lease agreement. Sounds great, right? But, here's the kicker: I’m having a bit of a dilemma. I can’t seem to figure out if salary sacrificing for a vehicle is really worth it. 🤔 Here’s what’s on my mind: Out-of-pocket costs: When I lay out my numbers, it appears that my total expenses—taking into account purchasing the car at the end of the lease—are pretty much the same as just buying the car outright and handling everything myself. Pre-tax benefits: I thought the point of using pre-tax dollars would lessen my overall costs. Shouldn't my out-of-pocket expenses be lower since part of the costs are being covered before tax is taken out? So, am I missing something crucial here? 🤷♂️ P... Is Salary Sacrificing an EV Worth It? Uncover Hidden Costs! Answers: https://lnkd.in/g5Ymh3Wn

Novated Lease: How It Saves Employees Money and Benefits Employers 🌟🌟🌟 https://lnkd.in/gXEKtZ3m #cars #taxes #Employee #employers #accountants #novatedlease

Novated Lease: How It Saves Employees Money and Benefits Employers 🌟🌟🌟 https://lnkd.in/gDvDHYn6 #cars #taxes #Employee #employers #accountants #novatedlease

So, if doing nothing on how we pay for driving is a bad option (see yesterday's post) what should we do? Slides and text for my recent talk to the Manchester Lit&Phil Society are now available here: https://lnkd.in/esw9R6tx A few highlights (see slides and narrative for detail): 1) A shift to a pay per mile tax for EVs is necessary, sensible and doable if Government acts early 2) A national congestion based road user charge is a dead duck. The pandemic has shown that this will be a tax on inflexibility of employment. Undeliverable except on very small spatial scales in the middle of cities. 3) The problem of how we pay for travel is currently about petrol/diesel vs. electric. But the really big discrepancy will be between off-street with solar/V2G, off-street no solar, versus on-street for your EV charging. The cost per mile differential between the cheapest home based charging and on-street is at least an order of magnitude. A regressive pricing system based on the inverse housing space with almost no tax income. Great! 4) In all of the above, we also aren't really talking about how we pay for driving. That is the £79bn a year we spend on simply owning, maintaining and insuring cars. That's nearly 3 times what we spend on moving cars and that is growing as a proportion. The INFUZE project is trying to imagine and develop potential futures which take us into post-individual car ownership (yes - some of that is here already). It will mean rethinking how we organise, price and tax mobility. None of that is part of the short-run discussion on 2p per litre on fuel duty. We've had the same system for paying for driving for around 100 years. I'd argue that we don't need a small economic adjustment to make the system fit for the future, but real clarity about the kind of system we are planning to encourage. Right now it looks like a very unjust mess.

Gross rent refers to a rental agreement where the tenant pays a fixed amount that covers both the rent and most of the property-related expenses, such as taxes, insurance, and maintenance. This type of lease simplifies budgeting for tenants, as they are not responsible for fluctuating costs, though it often results in a higher overall rental cost. #TermTuesday #GrossRent #LeaseAgreements #CommercialRealEstate #Budgeting Read more: https://hubs.li/Q02XKQGg0

🚗💼 Considering a company car or a car allowance in the UK? Let's dive into the pros and cons, especially regarding tax implications! 💷 Company Car: Pros: Convenience: Maintenance, insurance, and depreciation are usually covered by the employer. 🔹 Predictable Costs: Fuel cards and servicing are often included. Cons: 🔹 Benefit-in-Kind (BIK) Tax: Company cars are taxed based on their CO2 emissions and list price, which can lead to significant tax liabilities. 🔹 Limited Choice: Options may be restricted to a specific range of models. Car Allowance: Pros: 🔹 Flexibility: Choose your own vehicle and potentially keep it after employment ends. 🔹 Potential Savings: If you opt for a fuel-efficient or lower-cost vehicle, you might save money. Cons: 🔹 Personal Costs: You bear the costs for maintenance, insurance, and depreciation. 🔹 Taxable Income: The allowance is added to your salary and taxed at your marginal rate. Ultimately, the choice depends on your personal and financial circumstances. Weighing these pros and cons can help you make an informed decision! 🚗💼 #CompanyCar #CarAllowance #TaxBenefits #UKTax #EmployeeBenefits #WorkPerks #CareerChoices #FinanceTips

For business owners currently doing their tax returns, the Australian Taxation Office (ATO) has released a quick reminder on how and what to claim for your vehicle expenses. You are able to claim certain business-related car expenses, including: * Fuel and oil * Repairs and servicing * Interest on your car loan * Lease payments * Insurance premiums * Registration * Depreciation of the vehicle You can choose to claim in two ways. First, using the cents-per-kilometre method, where you claim a set rate for each kilometre you travelled for business. Or second, using a logbook. This means you need a detailed record of your driving activity to calculate how much you used the vehicle for work versus personal purposes.

Curious about novated leasing but not sure if it’s right for you? Check out our detailed guide to help you make an informed decision: https://lnkd.in/ejxWmb4Q #NovatedLease #Tax #Convenience #NewCar