Any tax gurus out there? BIK with a car

[Wishmelucknow]

Can anyone help. Every year despite self assessment I keep getting told I owe the taxman more and more money! Happy to pay my dues but feel I’m worse off even though I got a supposed pay rise.

i did get a car. It’s a green car lease deal so it’s not ‘free’ as a perk. They take the money out of my pay and as far as I understand I need to pay BIK. I did the online calculation and seemed to say I’d pay around £770 a month. However I’ve now had a new tax code delivered saying now I have no tax free allowance and that car plays some part in that to a cash equivalent of which £11050 of that is the car for 2023. Does that sound right?

when they say is this being taxed at source by your employer how do you know that ? Should I be putting this on my tax return if the money is essentially taking it out my pay each month? Frustratingly tax off self assessment isn’t open until September.

Is this a company car, or a salary sacrifice scheme lease car? Both attract a BIK tax component, but apart from that are very different. By the sounds of it, the £1,200 a month might be the gross salary sacrifice for a £77k hybrid car? On which there will be a BIK tax charge wrapped up as either a P11D benefit or through the deduction for the car / your tax code

All I can go on is that it’s a salary sacrifice green lease deal. On info from the car people they say if it’s a salary sacrifice it’s regarded as reduction in salary and if I say I’m contributing anything to the cost of the say no. P11d has put the vehicle as 14% BIK but work haven’t put any miles according to the electric CO2 value so wondering if they reduce the BIK to 8% (that’s what the car spec says) then maybe it’ll be more in line with what I expected?