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Afternoon guys,
I am looking into getting an EV as part of my employers salary sacrifice scheme, I am looking to figure out if this will effect the overall payment that CMS state I should pay the mother of my child. I have searched everywhere online but I cannot find anything conclusive. Does anyone have any experience around this?
Hi,
I have heard of some cases where dads end up paying more maintenance because they use a company car. I recommend you join this support group for paying parents. Lot of experienced members
God that’s a mess! I was thinking salary sacrifice would have a different outcome to a company car?
@spears I would speak to an accountant who knows about child support, I think the cost of a consultation could easily be worth it.
@actd you are most definitely correct.
it dazzles me that the CMS doesn’t have this information clearly available. Salary sacrifice is neither new nor uncommon.
I will give them a call at some point and try and get an absolutely clear answer. I’ll update here if I do!
@spears I believe, but could be wrong, that the CMS assessment is based on the Benefit in Kind value and even though this may have gone up from 1% to perhaps 2%? the amount is negligible.
If it was petrol or diesel it would be significant, but I believe an EV should add little to the CMS award. I am not 100% sure however......
@hrabbit thanks for your reply, that’s another angle I hadn’t thought of.
My thoughts were that as it’s salary sacrifice, the gross value will be removed at source so that when HMRC are given my salary figure then it should be lower than current due to the EV lease vslue being removed? Identical to a salary sacrifice pension?
@spears thats correct, but with a petrol / diesel the benefit in kind replaces plus sometimes more the value of the salary sacrifice. With EVs the BiK is so low that it doesnt, so you are better off.
That said I am not up to speed with the recent changes to BiK for EVs.
@spears - Hi mate, did you get anywhere with the information you needed regaridng salary sacrifice EV's?
Im in the same boat and want to know the same answer..... If I earn £40k and salary sacrifice £20k into an EV and pension will CMS base my calculation on the £20k that's left (Salary sacrifice is taken at source before HMRC get their hands on it and minus tax and NI)?
@spears - Hi mate, did you get anywhere with the information you needed regaridng salary sacrifice EV's?
Im in the same boat and want to know the same answer..... If I earn £40k and salary sacrifice £20k into an EV and pension will CMS base my calculation on the £20k that's left (Salary sacrifice is taken at source before HMRC get their hands on it and minus tax and NI)?
My apologies, I haven’t been in touch with them yet due to awaiting a new yearly amount to pay the ex, bad timing to lump in another expense at this point!
@mrskipsey I think there is one difference to your calcs. If you are paid 40K and 20K salary sacrifice for the car, there will be added the Benefit in Kind value of the car. For an electric car it is 2% so pretty negligible. If it is a petrol/diesel car however it is a combination of the value and emissions. I am not an expert so cannot quantify that for you.
But lets say its 5k, then your assessed amount will be £20K plus £5k. If an electric vehicle it probably wont be a lot.
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