NHS salary sacrifice lease car HELP!?

amgamc1983

I have a nissan juke on salary sacrifice of £333 a month. my tax code has been halved due to this .
I received my p11d and payroll has not put my personal cobtribution for the car on it so while i earn £13000 a year i pay £3990 salary sacrifice and my tax code has been reduced by just under the same amount.

is anyone else on a salary sacrifice scheme? HMRC said the amount i pay should be on the p11d but work say its not because its a salary sacrifice very confused as to whether to carry this on.

molerat

The BIK for the Nissan Juke is around £3-4K so sounds about right to me, exact value can be found here http://www.fleetnews.co.uk/cars/car-tax-calculator/
What personal contribution are you making ? The lease sacrifice is not a personal contribution for tax purposes. Many people think the salary sacrifice lease scheme is far more generous than it really is.

Darksparkle

Your personal contribution should be reflected on the tax/NIC you pay through your pay, not through the P11d.

sheramber

Your payments are deducted from your gross salary before tax is calculated so you get tax relief that way. Your taxable salary is your gross less your salary sacrifice payments.

However, your lease car is considered a company car and as such is a 'benefit in kind' Therefore an adjustment is required in your code number to collect tax due on the benefit of having a company car available for private use.

Cook_County

Thankfully from 2018 the NHS won't be able to reduce its tax & NIC bills by salary sacrifice for employer provided cars. This will be a fairer system for all of us. As an employee, you may want to negotiate a pay increase from April 2018 to make up for your own increased NIC from that date.

molerat

Cook_County wrote: »

Thankfully from 2018 the NHS won't be able to reduce its tax & NIC bills by salary sacrifice for employer provided cars. This will be a fairer system for all of us. As an employee, you may want to negotiate a pay increase from April 2018 to make up for your own increased NIC from that date.

The changes are still at consultation http://www.nhsemployers.org/your-workforce/pay-and-reward/reward/total-reward-in-the-nhs/vat-changes-salary-sacrifice/have-your-say-on-the-future-of-salary-sacrifice

Brighty

That seems a blooming expensive lease for a Juke, was there an up front payment too?

Felix123

Well I for one am not happy with the proposal to do away with the tax benefits of the salary sacrifice scheme as I've just signed up for a new car. I've started a petition to allow workers to continue to sacrifice their salaries in exchange for safer cars on the UK Government and Parliament Petitions web site. If anyone is interested in signing this petition then please do so.

Thank you very much.

Wayne_O_Mac

Felix123 wrote: »

Well I for one am not happy with the proposal to do away with the tax benefits of the salary sacrifice scheme as I've just signed up for a new car. I've started a petition to allow workers to continue to sacrifice their salaries in exchange for safer cars on the UK Government and Parliament Petitions web site. If anyone is interested in signing this petition then please do so.

Thank you very much.

Your petition will fail. Congratulations on wasting your time.