offyoutoddle said:
forgive my ignorance of such matters, but does that mean on a 300 per month lease , by buying it pretax via a company salary sacrifice scheme, it works out only 31 pound a month less off your monthly salary? or is that 31 in addition to the 300 for the lease?
Heavens no! (I wish!!). The £31 is what I will pay extra in tax, regardless of the salary reduction, instead of paying £156. The benefit in kind is worked out on the car's list price, using the CO2 emissions figure to set the multiplier. Even if my lease cost was only £10 / month, I would still have to pay the figures below because they are based on the vehicle list price.
For example, my current E-Class has a CO2 figure of 141g/km, which for the 2015/16 tax year will be 26% tax rate.
Rounding the list price to 36k, the benefit according to taxman is 26% of 36,000 which is £9,360.00.
At basic rate 20% income tax, that is 9360 x 20% = £1872.00 per year that I would have to pay (extra, on top of normal income tax). Break that down to a monthly figure by dividing by 12, I would get stung to the tune of £156.00 each month.
The Phev will be taxed at 5% for the same tax year, so that is 5% of £37,899 (GX4h with metallic), giving a benefit of £1,895.00
At 20%, that equates to 1895 x 20% = £379.00 / year. Divide by 12 to get £31.58 per month taken off me, instead of £156 - an extra £124 in my bank account each month.
As my employer frequently says - No Brainer !
