Skip to main content

This is a new service – your feedback will help us to improve it.

  • BIK and tax code deduction

    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?