Hi, I've been offered a company car for the first time and having problems understanding the cost in tax! Not sure I can afford to take the car.
The Benefit in kind will tip me into the 40% bracket. But I salary sacrifice into my pension, which takes me well under the 40% bracket.
Does anyone know if the tax band used to calculate BIK is based on gross salary or if you can qualify for 20% if you salary sacrifice pension?
Makes a big difference to cost if I have to pay 40%tax band for BIK!