Company car benefit charge

wesleyad

Hi guys just trying to understand the best way to do this. I'm aiming to put as much into pension as poss to bring down tax to below 40%, but unsure as to how the company car benefit charge affects it.

Example figures (for 2019/20)
Pay 60k
Company car benefit 6k

So do I need to pay 10k into pension to get under the 50k (standard personal allowance, no other credits etc)

Or will it be 16k? I'm assuming the latter.

Cheers

00ec25

you have 66k of taxable income

basic rate bracket ends at 46,350 (11,850 pers allow + 34,500 @ 20%)

10k from post (higher rate) tax salary is 12,500 gross salary

66 - 12.5 = …. ? Try again.

wesleyad

Cheers mate that's what I wanted to know (those figures I just used for next tax year as it was easier as it becomes 50k after allowance)