Car Salary Sacrifice & Tax Code

clarebear80

Hi, I'm hoping someone can help as I'm getting to the end of my tether.


I have a car through work as a Car Salary Sacrifice scheme, when I looked into the scheme the paperwork did advise that my Tax Code would change to allow payment for Benefit in Kind and the amount was shown in my quote for the car. I have had the car since November and my tax code has not changed but the full amount is going out my wages. I got in contact with our Employee Services who advised that I should contact HMRC myself, despite saying this was something they would sort when I received the car. Anyway, I got in contact with them and they advised that as this is a Salary Sacrifice scheme my tax code does not change.


I went back to my Employer and they just keep quoting what it says in the handbook, getting very frustrated at this point. So once again I have been in contact with HMRC today and they again advised that my tax code does not need to change. She also advised that they have received my P11D and the salary sacrifice is stated on there. I asked her about my P46 Car form and she said that when they receive it, it will state I have a car but there is an option that states it's salary sacrifice which should be ticked. This would let them know the tax code doesn't need changing and if it does change I should get back in contact with them as it's incorrect.


Has anyone had the same experience or any knowledge on this and could advise?


Many Thanks

serenity07

HI,


I too have a salary sacrifice car since March 2016. My tax code did not change nor did my employer send HMRC any details so I contacted them myself. I believe I gave them the wrong information and now my tax code has been lowered, but I was led to believe that the benefit in kind was taken from the initial payment from my gross pay.


Yet some of my colleagues who also have a salary sacrifice car their tax codes have not changed.


HMRC have taken it that I am making a personal contribution to the car myself but yet the car company insist I do not. My amount of tax per month has only altered afew pounds yet the quote I had said I would save £50+ pcm...


I'm as confused as you but could do with any advise too if anyone knows anything?


thanks

xylophone

See http://taxaid.org.uk/guides/information/issues-for-employees/employee/benefits-in-kind

Sprinkly

Having this problem now and I'm sick of it my tax code has changed so many times! HR still can't get it right!