Hi All,
I'm hoping someone might be able to offer some advice as I feel like I'm going to lose the plot!
My wife's employer started a salary sacrifice company car scheme back in 2015. The idea behind it was that they leased a car and you paid the lease amount through salary sacrifice. The car was for personal use but in terms of tax you would also be subject to the P11D, this includes claiming for business mileage.
In July 2015 she decided to get a car through the scheme. She paid £388 per month before tax was taken off.
The question is related to her paying too much tax and so I need some clarification on how it all adds up. So from I can gather, I've worked out that she should've been taxed as annual salary - salary sacrifice + bik value = taxable income. What's actually happened is annual salary + bik value = taxable income. The thing is I'm not sure which one is right, or even either of them are right. Maybe someone with a lot more knowledge than myself can help?
Thanks in advance
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