Ready, steady… save!
You don’t need a chart to join in. Here are 2 ways to record your savings:
1. Cross it off
Pop a chart into your first post. Saved an amount? Cross it out! Read more »
£0.01 £0.02 £0.03
2. Write it down
Skip the chart and add updates to your first post. Read more »
“Another +£3 saved today. Go me!”
Use +£ before each new saving so it counts towards your total.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Salary Sacrifice Car
On checking her pay-slip a few months ago she realized that her tax code was drastically low, 721M(despite claiming marriage allowance and no other deductions from her pay. i.e. no other salary sacrifices, no employment benefits).
On checking documentation from her employer she noticed that P11D forms had been submitted to HMRC claiming that she was receiving the 'cash equivalent of each car' (£2,379).
I am in receipt of salary sacrifice schemes and P11D forms aren't submitted for this as it isn't considered to be an expense or benefit. Is this correct?
I can't reiterate enough that this isn't a company lease car, this is a personal lease via a salary sacrifice meaning that the cost of the car is deducted from her pay before paying tax and national insurance but this entry on the P11D form brings her personal allowance down considerably.
This has been in the process of being sorted for a few months, Payroll initially agreed that this was a mistake and the cash equivalent of the vehicle should be set to 0 and she shouldn't be paying tax on it as the cost is already deducted, they have now backtracked on this and said that it does need to be included, therefore the tax office say it is a 'benefit in kind'. Tax office have given her a rebate as she has been paying this since 2014 and only noticed in April this year but due to Payroll's change of stance on it she is now expected to pay all of this back.
We need some advice on whether this is correct or not? We appreciate it is a complicated situation and would welcome any questions.
Comments
-
this document relates to salary sacrifice cars through NHS states that tax is payable
https://www.uhmb.nhs.uk/files/4214/1578/6147/Salary%20Sacrifice%20booklet%20UHMB%20new%202%20cars.pdf
A salary sacrifice car is a company car and all cars provided under this type of arrangement will attract car benefit tax and will affect your tax code. An estimate of your tax liability will be provided in each quote you receive. You will receive a P11D form at the end of each tax year which will confirm your taxable benefit.
here is another place offering salary sacrifice cars that appears to agree
https://www.businesscarmanager.co.uk/salary-sacrifice-and-company-cars-2/0 -
Look at it another way - do you honestly think the taxman is going to allow you to lease a car and they pay 32%-42% of it !
She will not pay tax or NI on the monthly cost of the lease but will pay tax on the BIK, £198 per month - how much is the lease cost, that will give the actual benefit.Never associate with idiots on their own level, because, being an intelligent man, you'll try to deal with them on their level - and on their level they'll beat you every time.
Being hated by idiots is the price you pay for not being one of them.
Jean Cocteau 1889-1963
0
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 355.9K Banking & Borrowing
- 255K Reduce Debt & Boost Income
- 456.2K Spending & Discounts
- 248.4K Work, Benefits & Business
- 606.1K Mortgages, Homes & Bills
- 179.1K Life & Family
- 264K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.7K Read-Only Boards
