We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
We're aware that some users are currently experiencing slow loading times and errors on the Forum. Our tech team is working to resolve the issue. Thanks for your patience.
Company Car
MountainMan101
Posts: 75 Forumite
I have a car allowance that comes with a new position. I want to exceed the allowance. Our FD says that I do this with deduction from net pay, and the contributions reduce the P11D.
Is it not allowed to do this from gross pay, like salary sacrifice, and avoid the 51% tax (income + NI + student loan).
I realise this won't reduce the P11D but with a BIK of ~20% and tax at 40%, £10/month top up out of net would only cost me £2.40. This is assuming the £10/month top up s for an option that only adds £360 to the P11D - which is true for the extras I want.
Edit : I'm not sure the exact lingo, but by allowance I mean amount the company will pay on the lease. It's not a cash option.
Is it not allowed to do this from gross pay, like salary sacrifice, and avoid the 51% tax (income + NI + student loan).
I realise this won't reduce the P11D but with a BIK of ~20% and tax at 40%, £10/month top up out of net would only cost me £2.40. This is assuming the £10/month top up s for an option that only adds £360 to the P11D - which is true for the extras I want.
Edit : I'm not sure the exact lingo, but by allowance I mean amount the company will pay on the lease. It's not a cash option.
0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.4K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.3K Work, Benefits & Business
- 604.1K Mortgages, Homes & Bills
- 178.5K Life & Family
- 261.6K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards