Benefits in Kind

Notfarfromtheborder

Hi
I'm trying to get my head around how much I need to sacrifice to keep me from paying 40% tax
Taxable pay after pension sacrifice £43K
BIK £5K
Obviously no 40% tax to pay.

However, am I sacrificing too much, if my taxable pay was £50K and BIK was £5k would I pay 40% on £55000 - £50270 = £4730 or not pay 40% tax as taxable pay is under £50270.

Thanks

BoGoF

The BIK needs to be taken into account. It is your total taxable income that counts including any investment income.

Notfarfromtheborder

BoGoF said:

The BIK needs to be taken into account. It is your total taxable income that counts including any investment income.

Thanks, so to be clear I need to add my taxable income to to the BIK amount and keep that number under £50270? Thanks

BoGoF

Notfarfromtheborder said:

BoGoF said:

The BIK needs to be taken into account. It is your total taxable income that counts including any investment income.

Thanks, so to be clear I need to add my taxable income to to the BIK amount and keep that number under £50270? Thanks

That is correct