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Posted Mon, 19 Jun 2023 09:55:25 GMT by
Hi all, I’m confused around what deductions are allowed for child benefit higher earners. I’m due a pay rise which will take my salary to £59559 and I know this means I’ll lose most of the CB I receive but if I take a sal sac car does this come off the adjusted net income. I’m looking at a fully electric car which has 2% BIK which is £756 a year. Getting conflicted advice if it does or not Example Sal £59559 Pension -£5900 Sal sac car -£7427 BIK £756 Total adjusted net pay £46988 Am I right to think it makes no difference that it’s a sal sac car as long as I add the BIK on?
Posted Thu, 22 Jun 2023 13:48:05 GMT by HMRC Admin 32
Hi,

You are correct that if the car was salary sacrifice that you would need to add the BIK on.

Thank you.

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