Salary Sacarafice Scheme

ej2095

Quick question my work offering a salary scheme for a car.
So was wondering as i would technically get less cash at the end of the month.

Would this affect my child tax credit??
i.e as i get less each month would this go up?

zagfles

The taxable benefit of the car would count as income for tax credits, so your P60 income would go down but your P11D benefits would go up.

Usually with these schemes you sacrifice more salary then the taxable benefit, so you could see an increase in tax credits, but will depend on the exact numbers. If the taxable benefit was more than the sacrifice, tax credits would go down.

However - they'll probably want to look at the salary sacrifice scheme. See http://www.hmrc.gov.uk/manuals/tcmanual/TCM0044060.htm - if the sal sac is not for one of the things mentioned in step 3 they'll probably want all the info mentioned in step 4. Not really sure why, I'd have thought the P60 and P11D would be enough - but it might be in case they think you're sacrificing in order to get more tax credits.

ej2095

Intresting and thanks for reply. the company who are doing the scheme are called Tusker. if this help with any extra info...