Salary sacrifice tax code help

moomoobear

Hi 
I feel my tax code is incorrect for my salary sacrifice car.  I dont understand the way it is worked out on my HMRC account and the tax code I have.  I owe £2400 in tax apparently and my tax is worked out by my employer.  Does anyone have any knowledge on here on salary sacrifice tax please.

libra10

You may get more responses posting on the Tax section.

https://forums.moneysavingexpert.com/categories/cutting-tax

MSE_ForumTeam5

We've moved this to a more suitable part of the forum

Dazed_and_C0nfused

moomoobear said:

Hi 
I feel my tax code is incorrect for my salary sacrifice car.  I dont understand the way it is worked out on my HMRC account and the tax code I have.  I owe £2400 in tax apparently and my tax is worked out by my employer.  Does anyone have any knowledge on here on salary sacrifice tax please.

No one can help you without some proper details.

Salary sacrifice is usually quite simple, you agree to a reduction in salary and avoid paying tax and NI on the amount sacrificed.

One common thing people seem to misunderstand with salary sacrifice and cars is that you are going to be taxed on the company car benefit.

DullGreyGuy

moomoobear said:

Hi 
I feel my tax code is incorrect for my salary sacrifice car.  I dont understand the way it is worked out on my HMRC account and the tax code I have.  I owe £2400 in tax apparently and my tax is worked out by my employer.  Does anyone have any knowledge on here on salary sacrifice tax please.

There is no tax on the sacrificed salary because you didnt receive it. You now however have a company car so will get benefit in kind tax applied based on the car's fuel, list price and CO2 levels. This will appear on your P11d