uk-tax-res1

Thanks everyone. I’m not sure the BIK value reduction offsets the benefits of salary sacrificing completely, so I guess we will continue to negotiate with the employer on taking the contribution from gross pay

Thanks for the reply, HMRC Admin 21. I’m fine with the benefit element, it’s more about whether my contribution as an employee qualifies for the optional remuneration arrangements exemption (as a contribution to an EV lease car) and if so, and my employer does not process the contribution I’m making out of gross salary, whether there are any other ways I can obtain the tax savings outside of PAYE.

I am wondering if it's possible to claim the effect of an EV salary sacrifice scheme if it's not offered by an employer, possibly through a self assessment. The fact pattern is that the employee (who's only income comes from working for one employer) has been offered and accepted an EV lease vehicle as a company car, and has opted to make a monthly contribution through a salary deduction to benefit from a more expensive model (the contribution is not the full value of the monthly lease cost). The agreement to make the salary deduction will last the length of the car leasing agreement, four years. The employer is taking the contribution out of net pay, and has confirmed that they will not adjust this so that it is taken from gross pay, as they currently do not offer an EV salary sacrifice scheme. Is it possible to claim a refund of tax back, equal to the EV salary sacrifice savings, if the employee was to prepare a self assessment, or are there any alternative ways in which the employee can recognise this benefit? Thanks in advance