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Salary sacrifice
The business is moving away from company car and providing a cash for car allowance amounting to £450.
They have also introduced a scheme called tusker which is a way to lease a car with the full company car benefits inlcusive of price. what i need help with is breaking down the price and understanding the exact effect on my take home pay, being a 40% tax payer.
Below is a screenshot from tusker for a car i have selected, can somebody confirm how much i would be out of pocket after my car allowance?
Comments
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The breakdown implies that some of your Income Tax saving will be at 40% and some will be at 20%. If it's wrong and all the saving will be at 40% then your Income Tax saving will be £267.60, not £217. So the reduction to your take home pay will be £396 per month, not £444 per month.
The £450 car allowance is £261 per month net, after 40% tax and 2% NI. So in theory you'll be £189 out of pocket every month. Presumably you can take the car allowance and not get a salary sacrifice lease car though?
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These lease car deals via employer are often poor value for money. Make sure you compare personal lease deals for the same car direct with a lease company.
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