anyone know how company car tax works for a salary sacrifice scheme?
last year I took out a company car through my employer on a salary sacrifice scheme, for which I lose £318pm from my gross income to pay for the car.
I have had a letter today from HMRC saying my tax free allowance has changed, as my employer has notified them I have a company car, and the benefit I receive for this from them is £3821pa, so I have to pay tax on that amount, so my allowance will drop from 10,000 to 6179.
but the 3821 isn't a benefit, I pay that amount myself to have the car.
I think they have me down as having a fully provided company car paid for by the company, and not a salary sacrifice one.
I have tried ringing them three times already today, but after half an hour on hold I give up and am now in work..
just thought I'd see if anyone could shed any light on it?
last year I took out a company car through my employer on a salary sacrifice scheme, for which I lose £318pm from my gross income to pay for the car.
I have had a letter today from HMRC saying my tax free allowance has changed, as my employer has notified them I have a company car, and the benefit I receive for this from them is £3821pa, so I have to pay tax on that amount, so my allowance will drop from 10,000 to 6179.
but the 3821 isn't a benefit, I pay that amount myself to have the car.
I think they have me down as having a fully provided company car paid for by the company, and not a salary sacrifice one.
I have tried ringing them three times already today, but after half an hour on hold I give up and am now in work..
just thought I'd see if anyone could shed any light on it?