Ev salary sacrifice

Fuse99

I'd say that my Google skills have failed me, but I think the real issue is my ability to read, decipher and apply what I'm reading! I'm hoping one of you knowledgeable folks might be able to set me straight.

I've taken an interest in the EV salary sacrifice scheme recently, but there's a couple of points which I can't seem to definitively answer. The main one is the issue of how it applies to the higher rate child benefit tax charge. I currently earn above the £60k threshold, but with my pension contribution, through salary sacrifice, this drops me down into the £50-60k bracket meaning I pay back a portion of the child benefit we receive. If I sign up to the EV salary sacrifice this will further drop my net salary down into the sub £50k bracket, but my question is what effect, if any, does this have on the child benefit tax? I think I have to add the P11D BIK value onto my net income, but I've also seen it said that actually you have to include the full value of the salary sacrificed in the calculation, so in essence it's only the pension salary sacrifice that HMRC care about rather than all salary sacrifice. By way of a simplified example using round figures:


Scenario 1
Gross salary £60,000
Pension salary sacrifice £6,000
EV salary sacrifice £10,000
Adjusted income £44,000
Child benefit tax applied would be 0%


Scenario 2
Gross salary £60,000
Pension salary sacrifice £6,000
EV salary sacrifice £10,000
P11D BIK @ 2% £1,500
Adjusted income £45,500
Child benefit tax applied would be 0%


Scenario 3
Gross salary £60,000
Pension salary sacrifice £6,000
EV salary sacrifice £10,000
Adjusted income £54,000
Child benefit tax applied at 40%

Having written it all out I think I've probably made it needlessly complicated! I think the question really boils down to, as far as the higher rate child benefit tax is concerned, does HMRC care about an EV salary sacrifice scheme in their calculations?