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Where Taxpayers and Advisers Meet

BIK on salary sacrifice car

Jina
Posts: 1
Joined: Sun Jun 09, 2019 12:34 pm

BIK on salary sacrifice car

Postby Jina » Sun Jun 09, 2019 12:50 pm

I need some help. I work in the NHS and got a lease car where I pay the full amount for the car as a salary sacrifice.

The car is not a company perk. Why do I have to pay the cash equivalent of GB BIK?

I was on the assumption the amount I pay will be taken from my gross salary.

I got my month 12 payslip which now shows two figures:

Gross pay: £34514
Taxable pay: £39032

Shouldn't the taxable pay be less?

Payroll are saying this is incorrect but haven't explained the reason.

Tax92
Posts: 1
Joined: Mon Jun 10, 2019 9:18 pm

Re: BIK on salary sacrifice car

Postby Tax92 » Mon Jun 10, 2019 9:23 pm

My understanding is that the cars are classified as company cars and therefore attract car benefit tax.

The trust must be patrolling the benefit in kind which is why your taxable pay is higher than your actual salary.

Has your tax code gone back up to the standard value ?

Have you asked the lease provider what they think?

bd6759
Posts: 3072
Joined: Sat Feb 01, 2014 3:26 pm

Re: BIK on salary sacrifice car

Postby bd6759 » Mon Jun 10, 2019 11:30 pm

The car is not a company perk. Why do I have to pay the cash equivalent of GB BIK?
You had a choice. Cash or a car. Both are taxable. If you were given more cash you would expect to the pay tax on that. Instead of cash, you are given a car. You pay tax on that instead.
Payroll are saying this is incorrect but haven't explained the reason.
You need to speak to payroll - they are the people who put these figures on your payslip.


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