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Salary sacrifice an...
 
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Salary sacrifice and CMS

 
 Cvm
(@cvm)
New Member Registered

Hi I had a car through a lease scheme at work and my CMS payments increased due to the salary sacrifice. 

 

I've now got rid of the car,  can I ask for the CMS to be recalculated?

Quote
Topic starter Posted : 11/04/2022 1:38 pm
(@dadmod2)
Illustrious Member

hi,

I think after getting rid of the car, if your wages/salary has dropped by 25% or more, then they could possibly recalculate maintenance and reduce it. can try contacting them and let them decide. 

ReplyQuote
Posted : 11/04/2022 5:07 pm
Cvm and Cvm reacted
(@adrianc)
New Member Registered
Posted by: @cvm

Hi I had a car through a lease scheme at work and my CMS payments increased due to the salary sacrifice. 

 

I've now got rid of the car,  can I ask for the CMS to be recalculated?

Whoa. I was working on the basis that my salary sacrifice lease car would reduce my maintenance by reducing my gross taxable income.

are you saying they discount the car lease cost and add it in to the income figure used for maintenance calculation?

ReplyQuote
Posted : 20/04/2022 9:22 pm
(@dadmod2)
Illustrious Member

here is some case law that can help you, apparently under old CSA system this company car policy was not considered income for child support calculations.

Company car not income for child support calculation

https://www.stowefamilylaw.co.uk/blog/2016/01/26/company-car-not-income-for-child-support-calculation/

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Posted : 20/04/2022 9:45 pm
Cvm and Cvm reacted
 Cvm
(@cvm)
New Member Registered

@adrianc thats exactly what happened.  Went up from 230 to around 270 monthly 

ReplyQuote
Topic starter Posted : 21/04/2022 6:55 am
(@adrianc)
New Member Registered

@bill337 

thankyou.

I think this represents a slightly different situation. The article refers to the provision of a company car and it’s associated BIK assessment for total earnings. assuming I read that correctly.

 

the question relates to the a personal lease of a car on commercial terms but administered through salary sacrifice. The scheme allows an EV to be leased by an employee from the lessor but with the cost deducted from gross earnings. 

the issue is whether HMRC/CMS will add the lease cost back before earnings are assessed for maintenance.

ReplyQuote
Posted : 21/04/2022 11:11 am
(@adrianc)
New Member Registered

@cvm so, your maintenance went up to £270 after you leased the car? Was this a personal lease via salary sacrifice rather than a company car?

ReplyQuote
Posted : 21/04/2022 11:15 am
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