New Salary with car allowance
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Dazed_and_C0nfused said:
Although to compensate for this the car allowance isn't pensionable so you avoid pension contributions on that part of your pay.
London loading, flexible benefits, car allowances etc are all ways for companies to claim a high total reward package whilst avoiding pension contributions.0 -
DullGreyGuy said:Dazed_and_C0nfused said:
Although to compensate for this the car allowance isn't pensionable so you avoid pension contributions on that part of your pay.
London loading, flexible benefits, car allowances etc are all ways for companies to claim a high total reward package whilst avoiding pension contributions.0 -
So I think it will be lumped into my monthly salary. Meaning it won’t be paid as a BIK.0
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LadyEE123 said:So I think it will be lumped into my monthly salary. Meaning it won’t be paid as a BIK.2
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The car allowance will be listed separately on your pay slip from your salary. Both will be gross payments subject to tax and NI. It will be listed separately so that 1) they can show they have paid it 2) so it doesn't get included when working out your pension contributions (or bonus per the extract above) and 3) to ensure it can be coded to the correct nominal code in their accounting software.
The private medical insurance, depends how they handle it. Some employers will operate "payrolled benefits" for medical insurance and other benefits and you pay any tax liability each month in your pay. If its done the old fashioned way though, it will be reported to HMRC on your P11D at the end of the tax year so effectively you won't start paying for it until the next tax year.
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