Higher income child benefit charge and salary sacrifice

[OneAquaGoose]

Does anyone know if taking a car lease via a salary sacrifice green car scheme impacts on the liability for the higher income child benefit charge?

No think BIK are not deductible.

It’s based on your actual salary (after salary sacrifice) not your nominal one, so yes. Same as any other salary sacrifice eg pensions.

That’s funny, 2 answers, both contradictory. Money board at its best.

If it’s a salary sacrifice scheme (rather than a company car scheme, which would be considered benefit in kind); then it would work to reduce your taxable earnings.

So yes, If the salary sacrifice scheme takes you under the threshold then you wouldn’t be subject to the higher income child benefit clawback.

Fantastic news - thanks all.