Please help if you can!
I have spent the last week trying in vain to understand the full implications of a salary sacrifice car scheme available to me through my work
My main queries are the affect it will have on my tax code and my entitlement to tax credits
The details are
I earn £16271
Monthly amount of salary sacrifice has been quoted at £299.29 on a car value of £13640
The lease company has quoted a Benefit in Kind of £36.51 (co2 98, 14% BIK)
I have also been advised that this means I will save on tax and NIC as sacrifice is deducted from gross pay.
I really don't understand what all this will mean for my tax code, it is currently 944L, does anybody have an idea of what it will be with the BIK?
My other concern is tax credits, I am aware they will take the BIK into account but do the take my gross pay before or after the sacrifice? If it is after then I could be entitled to more tax credits! If anybody is in a similar scheme or can make sense of it all then I would appreciate some help. Is it a good deal? I am not in a position to pay a lump sum for a new car and my old Ford Ka is on its last legs :)
I have spent the last week trying in vain to understand the full implications of a salary sacrifice car scheme available to me through my work
My main queries are the affect it will have on my tax code and my entitlement to tax credits
The details are
I earn £16271
Monthly amount of salary sacrifice has been quoted at £299.29 on a car value of £13640
The lease company has quoted a Benefit in Kind of £36.51 (co2 98, 14% BIK)
I have also been advised that this means I will save on tax and NIC as sacrifice is deducted from gross pay.
I really don't understand what all this will mean for my tax code, it is currently 944L, does anybody have an idea of what it will be with the BIK?
My other concern is tax credits, I am aware they will take the BIK into account but do the take my gross pay before or after the sacrifice? If it is after then I could be entitled to more tax credits! If anybody is in a similar scheme or can make sense of it all then I would appreciate some help. Is it a good deal? I am not in a position to pay a lump sum for a new car and my old Ford Ka is on its last legs :)