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Posted Fri, 21 Apr 2023 10:50:12 GMT by Confused101
Assuming I earn £110k gross, if I were to pay £11k per year gross through salary sacrifice for the company's car scheme (EV), will my adjusted net income be £99k for the purposes of working out my eligibility for tax free childcare? I have read the guide and its quite clear on pension contributions but not EV car scheme/salary sacrifice. Thanks
Posted Thu, 27 Apr 2023 12:04:04 GMT by HMRC Admin 32

You can deduct the figure however you will need to add in the car benefit charge. You can calculate it here:

Company Car and Car Fuel Benefit Calculator

Thank you.
Posted Tue, 16 May 2023 13:46:28 GMT by Scopific
So, hypothetically in this example, the salary sacrifices is £11K and the taxable BIK charged is £1K. Does this mean that the net adjusted income to use for the childcare calculation is £100K and therefore the poster would keep their 30 hours free as they have not exceeded £100K (or £999 BIK to make an income of £99,999, you know what I mean!) Thanks
Posted Tue, 23 May 2023 13:23:10 GMT by HMRC Admin 32

That is correct.

Thank you.

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