HELP Tax Demand after salary sacrifice

susiechoo

I need some advice please,

I used to work in the NHS and had a car via the salary sacrifice scheme, i paid for the car each month from my wages and i left the NHS in December 2015.
I received a tax demand stating i had paid too little tax and so i contacted HMRC and explained i had the car etc etc, i was advised to send all my payslips showing the payment and a letter, which i did twice and the last being in February this year as still had heard nothing, they have written back and said i still owe the money over £3000 as it was a benefit in kind.
The whole idea of the salary sacrifice was that i saved money on tax and national insurance and was able to have a lease car which i paid for. How is this a benefit in kind, i wasn't given the car by my company i paid for it and the salary sacrifice meant i paid less tax and national insurance but also my wages dropped and so did my pension contributions, how is this right that i now have to pay over £3000 Please help

molerat

Many people do not understand these salary sacrifice lease schemes. The car is an employer benefit in kind and is taxed accordingly. You do not get a car tax free. Your gain is the difference in the tax, NI and pension you have not paid and the lower amount of tax you pay on the BIK. If you choose the wrong car it can bite you in the backside.

xylophone

http://www.swast.nhs.uk/Downloads/SWASFT%20Bulletin/Bulletin%20links/FAQsforSalaryLeaseCar.pdf

Was there no change in your tax code to allow for the BIK?

susiechoo

No nothing changed at all. I must admit it really wasn't explained properly at all by the looks of it. I had a Nissan Quashqui which i got in the January of 2015 and then i handed it back in the December as i left the NHS.
I was led to believe that it was a good thing as we would save money on tax and national insurance and were able to lease a car.
This clearly isn't the case at all