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Salary sacrifice for a car or buy your own and claim mileage?
SueSawyer
Posts: 1 Newbie
My husband currently has a company car soon to be changed to salary sacrifice. However the company are planning to pay him the amount it cost him as a benefit £2,200, then deduct the salary sacrifice amount and pay the annual mileage rate for company cars at 14.4p per mile for diesel. He has been told salary sacrifice would cost and extra £30 per month.
If he bought a brand new car , thereby avoiding MOT costs for three years, and claimed business mileage is it likely that would be more cost effective as he could then claim 45p per business mile?
He is a higher rate taxpayer so the £2,200 will be taxed at 40% and of course NI'd.
He expects to do between 3,500 and £8,000 business miles, rather ambiguous I know. I expect it is a difficult question to answer but if someone has and idea of the best course of action that would be great.
Thank you
If he bought a brand new car , thereby avoiding MOT costs for three years, and claimed business mileage is it likely that would be more cost effective as he could then claim 45p per business mile?
He is a higher rate taxpayer so the £2,200 will be taxed at 40% and of course NI'd.
He expects to do between 3,500 and £8,000 business miles, rather ambiguous I know. I expect it is a difficult question to answer but if someone has and idea of the best course of action that would be great.
Thank you
0
Comments
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sounds like they are doing this anyway? What do you mean by "best course of action?"0
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