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Old 21st July 2008, 10:25   #11
Chugnut
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Join Date: Dec 2006
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Quote:
Originally Posted by chrisl View Post
Correct me if i am wrong but if i wanted to put a full £800 through a month it would still be beneficial.

Saving:
£800 x 21% Corp tax = £168
£800 x 20% on salary sacrifice = £160 + Employers and employees NI amount???
Total = £328+

Cost:
745 x 12.8% Employers NI = £95
745 X 20% BIK = £149
Total = £244

I have a min wage salary so NI would be minimal.
Sorry, I haven't ever needed more than the £243 per month, as my wife's employer runs a voucher scheme and covers the extra we need (only one kiddie), so I've never got into the whole BIK side of things.

Can't your accountant offer some wisdom here? If you do decide to do it, if you use an external provider, you're just eroding the savings you're making. Once they've done the initial setup admin, the monthly fee is money for old rope.
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