Postby jdc24 » Thu Feb 22, 2018 9:40 am
Thanks again, so my understanding to work out the monthly tax I will pay for the car is salary + BIK - personal allowance - first 345500 @ 20% = the remaining to be paid at 40%. 46696 + 5808 = 52504 52504 - 11850 = 40654 40654 - 34500 = 6154 6154*40% = 24616 24616/12 = 205 205 + 62 (driver contribution) = tax payment of £267pm?
The car allowance scheme I am looking to join asks me to choose a tax bracket to work out the BIK and according to HMRC website my earnings for 2017/18 is within the 20% bracket and my salary is frozen so will not increase in 2018/19. I think this is where I am getting confused as I am in the 20% bracket I feel I should click the 20% bracket on the order form as it does not mention anywhere about adding the BIK value to my salary!
Thanks for your patience.jdc24