Contributions towards company car, tax implications

[Amateurish]

I get a company car with my job, and it's agreed that I lose some of my salary to cover it.

IE Salary agreed at £X. Agreed contribution towards car is £Y. So I get paid £X-Y.

However, the company is calculating bonus, salary increases and employer pension contributions on the basis of this lower sum.

Isn't there a better way to deal with my "contribution"? I read on HMRC that I should be able to offset my contribution against the BIK value of the car as well.

[Eric Mc]

Sounds like a worse case scenario all around.

You have, in effect, accepted a "salary sacrifice" regarding your "contributions" for use of the car. This suits your employer more than it suits you as they are paying less PAYE and NI on your salary due to the revised "Gross Salary" being lower than the original amount offered.

I have serious reservations about the way a lot of salary sacrifice schemes are operated.

[Amateurish]

They've acknowledged that the set-up doesn't work well for me, and there's a willingness to change. What can I suggest as a better solution for me, and hopefully not expensive for them?

[Eric Mc]

Restore your salary, Buy the car personally. Pay for your own fuel. Claim 45p per mile for all business mileage undertaken.