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bigduckontax, Accountant
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Folks I pay a salary sacrifice car before tax is

Customer Question

Hi Folks I pay a salary sacrifice for my car before tax is this still txaed as a company car
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and happy to help you with your question.
Here is the guidance from Tchsalsa [edited]; a leading commercial provider in this area:
'A Salary Sacrifice arrangement is one with an employer. By agreeing to a reduction in salary which goes towards paying for your car, you can save an amount of tax and national insurance on the remainder of your salary. Although you have to pay company car tax, because the use of the vehicle by your employer is classed as a ‘benefit in kind’, the tax and NI savings far outweigh the company car tax'
So the answer is yes, it is still taxed as a company car, but reductions in tax and NI may well make the activity cost effective.
I do hope that you have found my reply of assistance.
Customer: replied 1 year ago.
thanks for this good service and straight to the point
Expert:  bigduckontax replied 1 year ago.
Delighted to have been of assistance.
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Expert:  bigduckontax replied 1 year ago.
Thank you for your support.

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