Salary Sacrifice Vehicles

toriih

I'm just after a little bit of advice. My employer has a car scheme called 'Fuel and Go' where employees can lease a vehicle over a period of time by sacrificing a part of our salary. £315.51 gets deducted from my monthly salary to pay for the car, yet when my employee submits the P11D to HMRC, they are stating I am making no contributions towards the car which is resulting in me being taxed. HMRC have confirmed I am basically paying for the vehicle twice, once by the salary sacrifice, and the other by my tax code being amended due to my company stating I have a company car. My company is making no contributions to the vehicle as I not only make the monthly payments but I also pay for the fuel.

I just wanted to see if anyone else has had this problem and what their views are on it?

Thank you

Guest101

toriih wrote: »

I'm just after a little bit of advice. My employer has a car scheme called 'Fuel and Go' where employees can lease a vehicle over a period of time by sacrificing a part of our salary. £315.51 gets deducted from my monthly salary to pay for the car, yet when my employee submits the P11D to HMRC, they are stating I am making no contributions towards the car which is resulting in me being taxed. HMRC have confirmed I am basically paying for the vehicle twice, once by the salary sacrifice, and the other by my tax code being amended due to my company stating I have a company car. My company is making no contributions to the vehicle as I not only make the monthly payments but I also pay for the fuel.

I just wanted to see if anyone else has had this problem and what their views are on it?

Thank you

The company will be subsidising the scheme. So they are making a contribution, but so are you.


Send HMRC a copy of your payslip.

Darksparkle

Salary sacrifice cars are considered company cars for benefit purposes and should be included on p11d.

Your contributions should not be on the p11d.

You're unlikely to save much on tax but would save on nic.

xylophone

https://forums.moneysavingexpert.com/discussion/5664704