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Child Benefit Tax & Salary Sacrifice Schemes?
mrsb2005
Posts: 2 Newbie
in Cutting tax
Hi, I am trying to work out if company salary sacrifice schemes are allowable salary deductions when working out your salary for the child benefit tax. I currently have childcare vouchers but am looking into getting a car through a salary sacrifice scheme and can’t seem to find if these count as allowable deductions - can anyone help? Thanks!
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Comments
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The car salary sacrifice will reduce your taxable income, but the car benefit in kind will be taxable income. If the car is <75g CO2/km the sacrifice is ignored and the taxable income is the car BIK value; if the CO2 > 75g/km the taxable income is the higher of the car BIK value (calculated normally) and the amount of salary sacrificed. Your employer should (if they are any good) have a comprensive Q&A on this and scheme rules and basic tax guide - ask HC/HR.0
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And don't forget to check if this will have a negative impact on your pension (due to having a lower salary).
Your employer should be able to explain the impacts.0
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