Company car contribution

[jonwm]

Afternoon all.

I'm moving jobs and there car policy is a little strange to me but bear with me whilst I see if I am missing a trick with some tax saving.

Current car scheme is £667 a month which I take or company car with no contribution. I earn over the 40% threshold but not the 45%

For the last few years I've taken the allowance, I'm moving jobs and the salary is higher but car allowance is shockingly low (£450) so I asked about the car scheme, they said it's all electric and example of a Tesla 3 would need me to contribute circa £150 a month.

I've said I'll continue with the car allowance for now but wanted to make sure I wasnt missing a trick with some tax saving on the contribution element or how I work it out.

[JackReacher]

You'll need to ask the employer to confirm how that trade up value is treated. It can sometimes be treated as a salary sacrifice contribution depending on how the scheme is structured, which is tax efficient with EVs. Alternatively, they might treat it as a capital contribution which reduces the list price of the vehicle which only reduced the BIK slightly and therefore less preferable to you.

[jonwm]

Thanks for the reply, I will check when I start.

Just wanted to be clear.

[Previous]

Just treat car allowance as salary.

Buy something used.