Salary Sacrifice Car vs Company Car - as Biz Owner
Discussion
It might be post Christmas brain but has anyone done the calculations on whether it is more beneficial (as a combined position as business owner and employee) to take a car through salary sacrifice rather than as a company car? My calculations - am I missing something here?
Assumptions:
Car costs £1,000 a month.
I get a pay rise to cover the salary sacrifice amount.
BIK stays the same.
As a company car, the business pays £12k of lease costs.
On Salary Sacrifice, the business saves NI of £1,800. The car is actually costing me £5,600, after NI, Inc Tax savings.
The difference (factoring in BIK) is £12,200 vs £3,344, which is quite some saving. I appreciate that the best option is probably for the biz to buy an electric car ...
Am I being daft?
Assumptions:
Car costs £1,000 a month.
I get a pay rise to cover the salary sacrifice amount.
BIK stays the same.
As a company car, the business pays £12k of lease costs.
On Salary Sacrifice, the business saves NI of £1,800. The car is actually costing me £5,600, after NI, Inc Tax savings.
The difference (factoring in BIK) is £12,200 vs £3,344, which is quite some saving. I appreciate that the best option is probably for the biz to buy an electric car ...
Am I being daft?
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