How to get a tax rebate inc Tax Code Checker

wildthing01

not sure if this is the right place to ask a question, but i have a query I'm wondering if anyone can shed light on.

i have a lease car through my employer - as i am an essential car user (stated in my contract), my employer runs a lease car scheme (i work in the public sector).

i pay towards the cost of the lease, as i have the car available for my personal use, and my employer pays the rest (as i use it for work purposes).

according to the tax office, this counts as a 'benefit' and they refer to it as a 'company car' (even though it's not part of my remuneration package - i pay for it), and so it reduces my tax allowance.

is anyone able to explain to me why this is? i have tried the tax office, but they just bamboozle me with tax jargon, so I'm none the wiser! doesn't this in effect mean I'm paying tax twice, as i pay out for the lease of it from my pay packet (presumably after tax), and then have my tax code reduced as well.

(plus, to add insult to injury, my petrol costs me way more than i get back in petrol allowance, so i'm out of pocket on my mileage expenses too, but that's a different issue!)

asc99c

I think this pension calculator may cause a bit of panic unnecessarily, particularly 40% taxpayers with a pension.

Pension tax relief is automatically applied at the 20% standard tax rate. If you pay 40% tax, then you'll get an additional higher rate tax relief allowance. I can't find my latest coding notice but the last one I can see shows +£566 to my personal allowance due to pension contributions.

In some cases at least, it's now upto individual employees to inform HMRC of changes to pension contributions each year. If you're a 40% taxpayer, you get a pay rise, and your pension is just a fixed percentage of earnings, you need to call and report your new pension contributions. These should feed into an increased tax code for the year.

asc99c

wildthing01 wrote: »

according to the tax office, this counts as a 'benefit' and they refer to it as a 'company car' (even though it's not part of my remuneration package - i pay for it), and so it reduces my tax allowance.

They've been trying to get rid of any advantage of company cars for a good long time now.

Certainly, it's expensive to buy new cars every 3 years - enough that I don't know anyone who buys their own car that actually does this out of their own pocket. If you've got a company car, they do hammer you with taxes on it, and it can be a pain since you often can't just choose to run a cheap but reliable 5-10 year old car.

I work with people who have relinquished their company cars to save money.

jem16

BIGFISH wrote: »

[/I]Does this meen I owe the tax man !!!
Thanks for any advice

It could if there is no reason for the extra allowance.

What does your coding notice say?

jem16

asc99c wrote: »

I think this pension calculator may cause a bit of panic unnecessarily, particularly 40% taxpayers with a pension.

I agree and that's my main cause for concern with this code checker.

There has been a marked increase in the amount of confused posts on this baord today - coincides with Martin's email telling us all about the tax code checker.

mcfi

My husband has received a letter advising that he has underpaid by £311.40. I've just read that HMRC are writing off any underpayments below £300. To say that I am gutted by this figure is an understatement. If they are writing off up to £299.99 for some people, do I have a leg to stand on if I said I would pay them £11.41? I know that there has to be a cut-off point, but being so close is very frustrating. This comes at a harsh time as the repayments will start just as I'm going on maternity leave. £26 a month could certainly be used in other areas!!

BIGFISH

Hi jem16 I don't have a coding notice I just used my last P60 for reference.

hca111

Hi could anyone advise me please I'm just a bit confused. I've put my tax code into the checker and got the result:
The number 543 in your tax code...

The tax code you've input says your tax-free allowance is... £5430 - £5439 Based on ONLY the salary and age you've input,
your personal allowance would be
£6475 There's a difference of £1045 between the tax free allowance suggested by age & salary, and the one from your tax code. Unless you have any other income, or deductions (see below), it appears your tax code could be incorrect.I tried a previous year and got a simaliar result do I possible owe them money or the other way round is it worth a call. I don't have any benefits in kind etc

jem16

BIGFISH wrote: »

Hi jem16 I don't have a coding notice I just used my last P60 for reference.

If you have a higher than normal personal allowance you should have a coding notice to explain why.

Do you have or have you had in a previous job, taxable benefits like company car or medical insurance?

jem16

hca111 wrote: »

I tried a previous year and got a simaliar result do I possible owe them money or the other way round is it worth a call. I don't have any benefits in kind etc

Your tax code is lower than it should be so you are paying more tax than normal.

Have you a company car, medical insurance or have you had previously?

What does your coding notice say?