04 October 2016
As many of you will be aware, HMRC have issued a consultancy paper regarding arrangements for Salary Sacrifice. Currently, this includes company cars, and could have the implication that the taxable benefit incurred by the driver of a salary sacrifice car will be the higher of the BIK calculated as at present, and the actual amount of salary sacrificed. This could result in a significant increase in tax liability, particularly for those drivers who have deliberately chosen low emitting vehicles to benefit from low BIK rates.
If this consultation paper is ratified this...
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