Gross Income and pay slips

MrsF34

Hello,

I am looking for advice regarding payslips and gross income. I work for my local authority and have a salary sacrifice car. This comes off the first section of my payslips as it isn’t classed as a deduction. Its removed before any deductions are made. My question relates to gross income and what this would be for me. Is the gross income still after my car payment is removed or does it include the amount before it’s removed?

I’m wishing to do an OU course and the part time fee grant is for people with a gross income of 25k and less. My P60 states 24k but this is after my car payments are removed. I’m wanting to know before I spend time applying if I’m not entitled. The OU want monthly pay slips and not P60 so the car will show up on there even though it’s remove before deductions.

Thanks for any advice.

zagfles

The car is a taxable benefit presumably so you get a P11D, most means tested assessments will include taxable benefits as well as P60 income so you'd likely be over the limit anyway, but you'd have to check the rules to be sure.

Comms69

zagfles wrote: »

The car is a taxable benefit presumably so you get a P11D, most means tested assessments will include taxable benefits as well as P60 income so you'd likely be over the limit anyway, but you'd have to check the rules to be sure.

I'm not sure if that's true.


A company car which can be used for personal use certainly is. But this is a lease car paid for by the OP.


However for the OPs question, the gross is the figure prior to any deductions.

zagfles

Comms69 wrote: »

I'm not sure if that's true.


A company car which can be used for personal use certainly is. But this is a lease car paid for by the OP.


However for the OPs question, the gross is the figure prior to any deductions.

The OP said it's salary sacrifice. That usually means the OP gives up salary and in return the company pays for the car. Presume it must be available for personal use otherwise why would be OP sacrifice salary for it. In which case it'll be a taxable benefit.

Dazed_and_confused

I agree with zagfles, the op may not realise or understand it fully yet but this type of arrangement does generally mean the op has a company car.

There have been several threads on this and the Cutting Tax board where people have either not understood or been poorly informed about the tax consequence of this type of salary sacrifice.

The common theme being they were unaware of the company car element until HMRC pursued them for unpaid tax (because the employer had filed a P11D with the car benefit details on).

MrsF34

Thanks for the replies. I do receive a P11d and the taxable benefit is reflected in my different tax code.

I imagine I would be over the limit due to this then. Thanks

Savvy_Sue

Well ... I'm not so sure.

I've always been told that if you take salary sacrifice, then you should be aware that for some purposes your gross salary is your sacrificed salary, so that it could adversely affect eg affordability calculations.

TBH, I'd phone the OU and ask them ...

zagfles

Savvy_Sue wrote: »

Well ... I'm not so sure.

I've always been told that if you take salary sacrifice, then you should be aware that for some purposes your gross salary is your sacrificed salary, so that it could adversely affect eg affordability calculations.

TBH, I'd phone the OU and ask them ...

For some purposes it is. For instance national insurance (no employees NI on BIKs). But for other purposes, eg tax, if the sacrifice is for a taxable benefit eg a car then that increases taxable income. If the sacrifice is for a non taxable benefit, eg pension or extra leave, then it doesn't.

From a quick google it's unclear what the OU base it on - they want to see payslips not P60 etc, so it could even be they look at salary before any sacrifice.