BIK or Tax on allowance

Hi, I have found the following info posted online by a private company but would like to confirm that this is accurate, please could you confirm the resource for this. Many thanks Tax rules for company cars where a cash alternative is offered From 6 April 2017 the rules changed for drivers who have the choice of a company car or a cash alternative. Previously, drivers who had this choice and chose to take a company car were taxed on the Benefit in Kind (BiK) value of their car. For drivers who ordered a new car before 6 April 2017, the existing tax arrangements stay in place until 5 April 2021 or until a ‘change in arrangements’ has taken place, this includes taking delivery of a new company car. Other drivers are now taxed either on the BiK value of their car or on the value of their cash alternative, whichever is higher. This means that drivers who select a car with a low P11D value, and/or a car with low CO2 emissions, may no longer benefit from a reduced tax bill as they may have to pay income tax on the full amount of their cash alternative.

Hi Wolfy1877,
Yes if salary is sacrificed in return for a company car, the employee will pay Income Tax on either the amount of salary they sacrifice or the value of the car - whichever is the greater.
Thank you.