Salary Sacrifice, Car Lease and Tax Credits HELLPPPP

mrsdanreid

Hi everyone,

i wonder if anybody could help me shed some light on this subject, it may have been asked a few times before though but i cannot find my answer.

I work within the NHS with a salary of 19268 my partner has a salary of approx 20000 and we have three children.

i am thinking about getting a car via the salary sacrifice due to my old 1998 scenic on its last legs and i simply cannot afford another car never mind the worst luck i have had with every car i have ever bought!

does anyone know how this would affect my tax credits? as we do get slight relief with our childcare (kids 8, 3, 2)

i understand that there is a P11d? for example if the car cost £20000 on the road and i earned £20000 a year would HMRC say i earn £40000 in regards to my tax credits?

I am sorry if this has been asked a hundred times before. im just really confused and do not want to enter something that will make our family struggle even more.

Many thanks for your help

Emma x

Icequeen99

The value of the car benefit on the P11D will be counted as income for tax credits.

However, the value on the P11d is not the actual list price of the car. It is a calculation which takes account of the car cost, emissions, your contributions to it etc.....

Can you ask the scheme provider if they can tell you what the P11d value will be?

IQ

mrsdanreid

HI Icequeen99

thanks for replying to me, i have looked on the HMRC site and says the below

According to the details you have provided, the results are:

Car benefit charge (2014/2015) £4,560.00

Car fuel benefit charge (2014/2015) £0.00

Tax Liability indicator: 20% 40%

Company Car Tax (2014/2015) £912.00 £1,824.00

Company Car Fuel Tax (2014/2015) £0.00 £0.00

so would HMRC take my income as £24560 on a £20000 salary?
and i understand that the company car tax would be paid separately? or do you know if this is calculated in the payment i pay out every month?

many thanks again

emma