Salary sacrifice electric car

Hello there! I would like to inquire about the employee electric car salary sacrifice. If the company wants to offer the electric car to the employee through the salary sacrifice scheme, how should we handle this matter? Do we need to register with HMRC for this? Also, do we need to declare this under P11D? Thanks,

Hi,
You do not need to register to operate a salary sacrafice, the benefit would still be reported on a P11d and as side note the salary sacraficed amount would not decrease the benefit amount as it is still taxable.
The benefit to the employee would be the saving on employee NIC.
Thank you.

Hi, Please can you clarify the above. The information all says that the BIK is 2% of the market value of the vehicle for electric cars but you seem to imply that there is no taxable benefit at all? Please could you clarify this?

Hi,
There would be a taxable benefit which would be captured on a P11d.
To clarify the point about a salary sacrifice not decreasing the benefit charge is because no tax has been paid on the salary sacrificed amount because the individual has given up the right to this money.
The only way the benefit charge can be reduced by an employee is to use their taxed income ie net income to reduce it.
Thank you.

So is the benefit charge on the amount of salary sacrificed or the 2% of the market value? If 2% of the market value is £1500 and the salary sacrificed is £6000 what will be used to calculate the reduction in tax code.

Hi Dan Wegt,
Please this guidance to help with the calculation.
Expenses and benefits: company cars and fuel
Thank you. 
 

Hi.
Please can you clarify.
My employer is saying they can only use my basic salary, rather than my total annual taxable salary with same employer, when calculating the cost of an EV car with salary sacrifice. This greatly increases the EV monthly cost compared to if my OTE is used, owing to regular annual bonus I am paid.
Is my employer correct as it doesn't make it worthwhile?
Thanks.

Hi Andrew Davies
Unfortunately, we are unable to provide specific advice tailored to individual circumstances on this forum. This forum is for general queries only.
You and your employer may wish to review guidance at: Salary sacrifice for employers.
If there is a point of legal uncertainty the employer can contact the HMRC clearance team only after consulting all relevant guidance or used the options available at Employers: general enquiries
Thank you