Salary sacrifice car scheme and tax credits

KB348

Icequeen99 wrote: »

It depends on what your previous year income is. If it is higher than your expected income calculated above, then your tax credits may be based on a different amount. HMRC don't count the first 2,500 of any fall in income from one year to the next.

IQ

Thanks for your response, but I would like to know the impact of Pension Contribution and Salary Sacrifice (for car lease) on Tax credit amount. I am struggling to understand which Gross will be used for Tax credit calculation.
Cheers.

zagfles

KB348 wrote: »

Thanks for your response, but I would like to know the impact of Pension Contribution and Salary Sacrifice (for car lease) on Tax credit amount. I am struggling to understand which Gross will be used for Tax credit calculation.
Cheers.

It would be salary after the sacrifices, plus the BIK value, then of course subject to income fall (or rise) disregard mentioned by IQ above. BUT also see the last part of my post #3, they'll probably want details of the salary sacrifice. I doubt you'll have a problem here because the car BIK value is the same as the car sal sac.