Company Car Allowance will count as Significant change

[bb2012]

Hi,

I apologies in advance if this question has already been asked in this forum.

I have done some search but could not find the answer therefore posting this question.

I am on Tier 2 General Visa

This year in annual salary review, my company has offered me an increment which is almost 5% increase, also they have offered a company car allowance.

There are two options
1. Either take monthly equivalent of about 370 pounds and arrange car myself. This will be equivalent to about 4500 pounds a year.
2. Company get car on lease for me.

In both above cases I have to pay tax on total of 4500 pounds a year on top of my salary.

Now my questions are

1. Does this car allowance of 4500 pounds a year on top of my "Salary increase" counts towards significant increase in salary?

2. Does my company need to inform Home office about company car allowance through Sponsor Management System?

3. Also could someone advise which is safer option to go for either company car or get monthly allowance? Which will not create issues during Home office audit.

I will be very thankful for any help or advise in this regard.

Thanks

[bb2012]

Any suggestions please.

[manci]

You don't have to report your annual salary increase.

from para 592 of the T2 sponsor guidance the sponsor has to report :

a change of salary from the level stated on the migrant’s CoS, other than changes due to annual increments or bonuses;

so they don't have to report it either.

what you had was an annual increase in your emoluments and the car allowance was part of that.

It is a personal choice whether you take a leased car or the cash, in either case it will be a taxable benefit.

[bb2012]

Thank you very much Manci for your precious reply.

Last question:

Is there any limitations on increase which could class as significant salary rise even it is an annual increase.

For example in my case salary rise is 5% plus car allowance which is about 20% of my annual salary. In this case I have a total of 25% increase.

Would this be class as significant change or rise in salary?