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Posted Mon, 30 Oct 2023 11:23:42 GMT by
Hello. My reference salary is (hypothetically) £85,000 annually. I receive a car allowance of £5,000 annually. I also receive a variable annual bonus that has averaged £11,000 over the past three years (I am using the average as suggested by illustrations associated with tax free childcare eligibility). This gives a total annual income of £101,000. I lease an electric vehicle through a salary sacrifice scheme at an annual cost of £6,000. Can I deduct the car leasing amount when calculating my 'adjusted net income'? If so, would my annual adjusted net income be £101,000 - £6,000 + Benefit in kind amount? Taking me below the £100,000 eligibility cap? Thank you.
Posted Tue, 07 Nov 2023 12:18:39 GMT by HMRC Admin 21 Response
Hi Winniewhile
If in a salary sacrifice then this would already have been deducted to give your annual salary of £85,000 so you would not deduct the sacrifice again. 
Thank you.

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