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Taxes due on Company Car Cash

caveman38
caveman38 Posts: 1,322 Forumite
Part of the Furniture 1,000 Posts Photogenic
If I forgo my company car and take a cash equivalent. What liabilities will I have to the IR.
I appreciate that the extra say, £5,000 in my salary will be liable to 20/40% income tax, but will it also be liable to NIC of any rate

Comments

  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    It would count as salary so you would pay tax and NI and student loan just as if it were a salary increase
  • comeandgo
    comeandgo Posts: 5,930 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    It will also have an effect on some benefits. One of my employees lost his entitlement to some benefits as his salary increased so went back to company car.
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