Electric Car scheme Salary Sacrifice

SOLVED

Hello,

how can I record on SAGE P11D the Benefit In Kind, regarding Electric Car Scheme Salary Sacrifice?

Thank you

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  • 0
    verified answer

    Hi Ilias,

    Thanks for using Community Hub.

    If the employee accesses the scheme via their employment, then the car is classed as a Benefit in Kind (BiK) and if salary sacrifice is involved then Optional Remuneration Arrangements (OpRA) come into play and the sacrificed amount should be entered as the cash foregone value.

    So where salary sacrifice would reduce the employee's earnings in Sage 50 Payroll, this value is actually being put in P11d to lower the chargeable cost.
    Salary sacrifice in Sage 50 Payroll is set up so it reduces tax and National Insurance. In P11d you enter car price and cash forgone as what is being sacrificed in payroll.

    If this helps, please click Verify Answer.

    Regards,

    Andy
    Sage UKI
Reply
  • 0
    verified answer

    Hi Ilias,

    Thanks for using Community Hub.

    If the employee accesses the scheme via their employment, then the car is classed as a Benefit in Kind (BiK) and if salary sacrifice is involved then Optional Remuneration Arrangements (OpRA) come into play and the sacrificed amount should be entered as the cash foregone value.

    So where salary sacrifice would reduce the employee's earnings in Sage 50 Payroll, this value is actually being put in P11d to lower the chargeable cost.
    Salary sacrifice in Sage 50 Payroll is set up so it reduces tax and National Insurance. In P11d you enter car price and cash forgone as what is being sacrificed in payroll.

    If this helps, please click Verify Answer.

    Regards,

    Andy
    Sage UKI
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