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Posted Thu, 09 May 2024 10:15:10 GMT by Katrina Mann
Hi, I entered a company car salary sacrifice agreement in Sept last year. I have been seeing the gross deduction on my salary each month, saving the tax and NI. This month, more than 6 months after getting the car, my new tax code has came in from HMRC for the new tax year and has an almost £2000 deduction for a "company car" - in the details on my personal tax account it states I have a company car with zero salary sacrifice contribution from me. I have flagged this with my employer that they have given HMRC the incorrect details which they have told me it is correct and that I pay both BIK tax on the car and also a tax code deduction as its a company car. The tax code deduction was never detailed in the agreement when it explained the tax implications and I have spoken to 4 other employees on same scheme who do not have a tax code deduction but pay the BIK tax. My employer is insistent it is correct but I can't understand why I would have both as then I am actually being double taxed on the benefit?
Posted Wed, 15 May 2024 11:10:48 GMT by HMRC Admin 20 Response
Hi Katrina Mann,
In this case you will need to contact HMRC to see what benefit information has been submitted by your employer.
You can contact HMRC Income Tax: general enquiries
Thank you.

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