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Salary Sacrifice
nikal
Posts: 35 Forumite
Not sure where to post this but..........
I want to buy my company car at the same price the garage will buy so no benefit value/tax to consider. My question is concerning salary sacrifice if they deduct the value of th car from my gross pay and only pay me the balance of my salary is that OK?
I will lose out on the 10% pension contribution I suppose from my employer? But save 40% tax?
I want to buy my company car at the same price the garage will buy so no benefit value/tax to consider. My question is concerning salary sacrifice if they deduct the value of th car from my gross pay and only pay me the balance of my salary is that OK?
I will lose out on the 10% pension contribution I suppose from my employer? But save 40% tax?
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Comments
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Are you sure this is allowed - when my colleagues have bought their company cars at the end of the agreement, the payment didn't go via salary sacrifice.
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The car is owned by the company it is not leased. They will sell it to me at the market price so there will be no cheap asset changing hands but I was wondering about if it was possible for them to deduct the sum owed from my gross wages?bolwin1 said:Are you sure this is allowed - when my colleagues have bought their company cars at the end of the agreement, the payment didn't go via salary sacrifice.0 -
You are still being remunerated in accordance with your contract. Receiving a car rather than cash.0
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Slightly confused by the wording of your question. If you aquire a disposal from your company that will be considered as income, you will therefore be taxed at your marginal rate, which from your post is 40%. The value of your car will therefore be deducted from net pay, not gross...
“Like a bunch of cod fishermen after all the cod’s been overfished, they don’t catch a lot of cod, but they keep on fishing in the same waters. That’s what’s happened to all these value investors. Maybe they should move to where the fish are.” Charlie Munger, vice chairman, Berkshire Hathaway0 -
Since 2017 the capital payment portion of a salary sacrifice car has been taxable except for existing arrangements that have that treatment from 2021. There appears to be no income tax benefit.1
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