Ryan Snodgrass
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RE: Adjusted Net Income (Tax Free Childcare and 30 free hours) - Salary Sacrifice
Hi Thanks HMRC. Can you clarify if the 'Salary sacrifice' for an electric car is counted as a deduction of the NET pay? E.g. you earn 110k per year and pay 20k salary sacrifice therefore your NET earnings are counted as 90k per year (there would then be any benefit in kind to add back onto this)? -
RE: Adjusted Net Income (Tax Free Childcare and 30 free hours) - Salary Sacrifice
Hi HMRC I understand the pension contributions reduce your NET income in regards to assessing your total earnings vs the childcare cap of 100k I currently have a Salary sacrifice taken from my pay for a Car and thus also have a benefit in kind cash amount which is shown on my P11D. Can you confirm if the Car Salary sacrifice counts towards the adjusted NET income in the same way the pension deductions do (although need to add the noted BIK cash value back on)?