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

Hi Team, I've taken a salary sacrifice vehicle (EV) from my employer. Just received a note from my dealer that I need to declare my Benefit-in-Kind tax. There is no such option in the Gov.uk website. Please can someone guide me. Thank you.

Hi ,
 

You can declare your company car on the personal tax account  : Personal tax account: sign in or set up   or by contacting the helpline :    Income Tax: general enquiries   .   You will need to provide details for the car which includes, list price, engine size, CO2 emissions, date vehicle was made available, amount you contribute towards the car and if you pay for your own private fuel. Thank you .

Dear Forum I am an NHS fleet user via salary sacrifice. Am I able to terminate my lease early by paying a penalty without meeting the special conditions of lifestyle change etc? Many thanks

Hi,
Capital contributions are payments made towards the cost of the car or any qualifying accessory and are deducted from the car’s list price when calculating the benefit-in-kind (BIK) value. Since your payment is not related to personal use but is a contribution towards the capital cost, it should be included in this section.
Thank you.

If the calculated salary sacrifice benefit is £0.00, do we still need to report the benefit as a nil item through payroll?

Hi SS-EMPTAX,
Please see guidance here: Payroll information to report to HMRC.
Thank you.

Hi, I’ve moved job locations due to a company restructure which significantly increases my mileage which will cause me to go over my contract colleague car mileage agreement. Am I able to pay early termination? Excess mileage cost over the the course of the remaining agreement is unaffordable

Hi Ellington87,
Please refer to EIM42767 - Salary sacrifice: conditions for successful sacrifice: right to revert to original salary or speak to your employer.
Thank you.