Best QuickBooks Consulting & Training in Portsmouth

Cars for staff A company car is a really good benefit for your employees. Back in the day, it was an even bigger perk, but it’s still worth having, despite the more aggressive tax rates we pay today. Depending on the car, you can take 30% or 40% of its full value as a tax benefit, which can be a substantial amount of money for your staff. Again, the best tax gains to be had are from electric or hybrid cars. One of the best ways to structure the finance is through ‘salary sacrifice’. This means that the employee gives up the amount of their salary equal to their car lease payments. The benefit of them doing this is that they don’t pay income tax and NI on the car lease payments, which they would have done when that amount was part of their salary. They still pay the P11D tax charge but they’re actually saving the tax on the repayments, as well as getting the benefit of the car itself of course. It’s also worth noting that, if you are an employee considering leasing a car privately, you should run it past your boss first, as to lease your car through the company will benefit you both - the employee will save tax and the business will save NI, by deducting the part of the salary being used for the car lease repayments.