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Salary Sacrifice Car and Tax
 
            
                
                    Black_Eyeliner                
                
                    Posts: 156 Forumite
         
             
         
         
             
         
         
             
                         
            
                         
         
         
             
         
         
            
                
                                    
                                  in Cutting tax             
            
                    Hope this is in the right area of the forum.
I lease a car from my employer through a salary sacrifice scheme. My tax code is adjusted and car benefit deducted from my personal allowance. I have noticed, however, that the car benefit deducted from my personal allowance has increased year on year; £5050 in 2017/18, £5555 in 2018/19, and £6312 in 2019/20.
I am driving the exact same car as I was in 2017. Can anyone explain why HMRC think I am getting more benefit from the car now than in previous years?
Thanks.
                I lease a car from my employer through a salary sacrifice scheme. My tax code is adjusted and car benefit deducted from my personal allowance. I have noticed, however, that the car benefit deducted from my personal allowance has increased year on year; £5050 in 2017/18, £5555 in 2018/19, and £6312 in 2019/20.
I am driving the exact same car as I was in 2017. Can anyone explain why HMRC think I am getting more benefit from the car now than in previous years?
Thanks.
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            Comments
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            I believe its to account for your vehicle becoming less fuel efficient with age (compared to new vehicles coming on the market), not because they think you're getting more benefit.You keep using that word. I do not think it means what you think it means - Inigo Montoya, The Princess Bride0
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