Company car tax

robbo2765

Hi

I currently receive £12500 cash allowance alongside my salary.
I'm getting a company car that'll cost £6500 and will get the other £6000 as cash.
There's a question on HMRC when adding a company car that says "Did you pay anything before tax towards the car?"
Can anyone advise what I'm supposed to enter here? Is it the £6500 towards the car?
Any help or advice would be appreciated. 

Thanks 

Dazed_and_C0nfused

I vote no, the £6,500 is being paid to you by your employer.

Jeremy535897

It sounds like you are sacrificing £6,500 salary in exchange for the use of the car. Therefore you will be taxed on the salary plus the £6,000 cash allowance plus the benefit in kind on the car (the higher of £6,500 or the scale charge). Is the car an EV?

robbo2765

Yes the car is an EV

Jeremy535897

I suspected as much. The benefit in kind for an EV is very low, so only a small amount will be added for that. The rule that you substitute the allowance paid for the scale charge does not apply to EVs. You should not need to enter the £6,500 as an amount paid for the car, so long as your employer is not adding the £6,500 they pay in car allowance to your pay in the first place.