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Car Salary Sacrifice

5 replies

Daffodils2023 · 23/05/2023 20:55

Hi, can anyone help me on the tax efficient savings that companies offer their employees, particulary Car Salary Sacrifice? The reason I'm asking is my ex has a Salary Package of £85k but the Child Maintenance Service are only taking into consideration £71k, they apparently get their figures direct from HMRC so I am trying to work out if it is the Car Salary Sacrifice which is bringing down the taxable income figure with HMRC. He works for a large company on payroll so there isn't any self-assessment. All I can think of is that it is the Car that is billed on the Companies benefits blurb as being a "tax efficient savings scheme"..... Anyone up on tax and can understand whether this is what is happening here?

OP posts:
Minibea · 23/05/2023 21:01

As I understand it the salary sacrifice scheme comes off the top line gross salary and reduces your taxable income so yes I think you’re right that CMS are working from the figures after the car payment have gone out (albeit that it is taken at source). Sure someone more knowledgeable will contribute shortly!

WhyDoesItAlways · 23/05/2023 22:03

Pension contributions maybe?

Iwrotethissong · 23/05/2023 22:07

Likely car and pension combined?

ianhill · 24/05/2023 06:31

This reply has been deleted

This has been deleted by MNHQ for breaking our Talk Guidelines.

Purpl · 26/05/2023 20:34

Health care as well or has bought extra annual leave or childcare vouchers

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