Tax Code (after leaving previous employer)

Good morning all


I have couple of questions regarding my tax code following change of employer... its confusing me and hope someone can help shed some light...


I handed my notice in to my old employer back in September 17. I had a company car and medical insurance I was P11D liable for.


My tax code at time of handing my notice was 570L.


I handed my company car back to my old employer in early November and now have a private car.


I have started my new company and recently received my new tax code (from HMRC) which is the same at 570L... the letter still states I am liable for medical and car allowances...


How can this be the case when I no longer receive the personal benefit? Do I have to pay this additional tax until April? possible to claim the over paid back?


I just assumed my tax code would alter back once my old employer informed HMRC I no longer had the car/insurance etc (which they did back in November).


Any help and direction appreciated.


Thanks
Shakey

Comments

  • 00ec25
    00ec25 Posts: 9,123
    Combo Breaker First Post
    Forumite
    edited 4 February 2018 at 10:10AM
    because you have not told HMRC that your circumstances have changed. your new employer is not responsible for telling HMRC about benefits you no longer receive. In fact your new employer has no knowledge whatsoever of your personal financial circumstances and therefore what your code should or should not be. Your employer's only responsibility is to action a code notice sent to them by HMRC, and report any benefits they pay you to HMRC. The rest is your personal responsibility

    just sort it out yourself, in the time it takes you to play a blame game and establish that it is your "fault" anyway, you can have it resolved with HMRC

    https://www.gov.uk/tell-hmrc-change-of-details/income-changes
  • Thanks for the quick reply.

    My previous employer did inform HMRC that the car was handed back - this was same day I handed it back (I have confirmation from my previous employer). Appreciate my new employer isn!!!8217;t aware of my past detail...

    So in a nutshell for me... if I no longer have the P11D benefit (car, insurance etc) my tax code should change back to normal? I.e 1150L? Even mid-way through tax year?

    Many thanks
  • badmemory
    badmemory Posts: 7,631
    First Anniversary Name Dropper First Post
    Forumite
    It won't go back to the full 1150L until the new tax as you still have some extra tax liability for the current year. As September is halfway through the year then you could expect a tax code in the region of 750L. However, the deduction for medical insurance may well be charged for the full year, depending on how/when your previous employer paid the premiums.
  • Thanks for the replies. Appreciated.

    Rang them up and managed to get a guy who explained it well. My car benifit hadn!!!8217;t been updated with hmrc even tho my old employer said they had informed them.

    They updated my code to reflect it being handed back but just pro-rata for remainder of tax year. So I still have some liability. Same story for medical.

    He also updated my code for next tax year so all back to normal come April.

    Thanks again for the help.
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