Help!! Tax confusion with salary

[Pammela]

Hi, my spouse is starting a new job soon. He’ll get a car allowance with it.

I have used the salary calculator website to look at how much per month he’ll take home. But it’s really confused me. When I put in the base salary it shows me a certain figure. Then when I add in the taxable benefit amount, it says he’ll get 250 a month less.. but surely it should be more?

Am I doing something wrong?! Thanks!

Now just wondering if I should be putting the salary in. Including the taxable benefit at the top?

If it’s a cash allowance just add it in the salary line

You may be adding it as if he’s receiving the benefit of a company car in which case he’d be taxed for the benefit. As it is a cash allowance he will just be taxed on the car allowance. So if he receives £350 and pays 40% tax it will add £210 to his salary.

If he's getting cash it's a taxable cash amount. If it's an actual car his Notice of coding will change to include the tax due on the benefit. So he'll lose£250 a month tax but you'll have a car.

Without knowing his tax banding and value of the allowance it's impossible to say if the figure is right.

He will pay tax on the value of the allowance, so for example if the monthly allowance is £500 and he is a higher rate tax payer, he will need to pay an extra £200 in tax a month.