Child benefit and car sal sac

Cresswe Forumite Posts: 18
Part of the Furniture Combo Breaker
Hi all, just after some advice pls. 

I’m due a pay rise soon which will take me over the £60k allowance to receive child benefit. I’m wondering if I take an electric sal sac car on offer if this will result in me still receiving it. Seem to be getting mixed messages at work

New sal will be £59559
expect bonus of 5% £2978
i pay £5900pa in a pension as sal sac 
Gross sal sac car reduction of -£7527
BIK is 2% £756
so I think my adjusted sal would be £49866

Does this sound right and does anyone do anything similar ?

I need a new car but not particularly a brand new one but if it means I’ll still get CB then it’s more appealing 


  • KingOfSnake
    KingOfSnake Forumite Posts: 36
    Second Anniversary 10 Posts
    Salary sacrifice for non-taxable benefits, exempt benefits or low BIK benefits does reduce adjusted net income (be careful of OpRA if doing anything other than childcare vouchers, pension, low emission cars). In the example above you are right. Payments in to pension are particularly good as you will be getting effectively 42% tax & (employee) NIC relief, it grows (hopefully) in pension pot, then you take 25% in tax-free cash and do whatever you see fit with the balance. Car BIK is published years in advance (see You just need to work out if an electric car is suitable. The High Income Child Benefit charge is one of the most immoral tax charges in modern times. 
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