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Does a company car affect my Tax credit allowance?

Hi, I currently have a company car which I guess is a benefit in kind.
My company is now offering a payrise which I was going to use to fund my own car. I guess that this would be beneficial as my tax code would change but would it affect my tax credit claim?

Any advice would be appreciated as I am a thick bloke!!:eek:

Comments

  • Company cars are a benefit in kind. You would declare the "cash equivalent" as income for tax credit purposes.
  • flea72
    flea72 Posts: 5,392 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    in theory, one should cancel out the other, unless your employer is going to give you a pay rise, that is greater than the 'value' given to your current company car on your current P9D or P11D

    you have been declaring a company car in your income totals for CTC havent you?

    Flea
  • Hi, thanks for the replies. Yes I have added this to the Tax credits claim!

    Thank you
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