Back dated tax.

minty35

I have just found out that the tax office were not aware of my new compnay car. Calling the tax office yesterday they have advised me that my tax code will change from 231L to K268.

My basic understanding is that when applied (December now) this will be backdated to the start of the year !

Total Difference in tax code £4990.00
40% Tax (higher rate payer) £1996.00
Divide 12 X 9 Additional tax due £1496.00

Can someone please tell me that im not going to have an additional tax liabilty of £1500 come the end of Decembner (on top of my normal tax)

????

[Deleted User]

I would expect at this point in the Year the code will be applied on a Month 1 basis, this isn't to say you won't have to pay the arrears, just not out of one Months Salary, they might give you a higher K code next Year to collect arrears.