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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.
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