Company Car Tax and Private Use Contributions

Company Car Tax and Private Use Contributions

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We have an employee who has a company car without fuel benefit.

He makes a contribution of £200 per month for the Private Use of this company car.

This contribution however, is taken as a salary sacrifice, so deducted from his annual salary (a deduction of £2,400 per annum) therefore he does not pay tax or NI on this salary sacrifice.

Is this employee also entitled to Private Use Contribution on both his P11d and the submission to HMRC regarding his benefits? Or, because it is a salary sacrifice scheme he has waived this right?

Many thanks in advance

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By Novakova
30th Dec 2014 07:25

Company Car Tax and Private Use Contribution
Salary sacrifice scheme and Private Use Contribution are two different things – PUC is made from net salary. As far as we are told the employee did not make a Private Use Contribution, will be taxed on full car benefit, and should have received a copy of his P11D.

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