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How does tax code change when you no longer have a company car?

Just trying to understand how paying tax works.

Scenario - figures rounded up to make it easy and ignoring personal allowance.
If figures for car and fuel allowance is -£6,000 and then 6 months into the year you hand in the car, does your car and fuel allowance figure change to -£3,000 or does it change to £0 because you paid for the car at the higher rate whilst you actually had it?

Comments

  • dori2o
    dori2o Posts: 8,150 Forumite
    Part of the Furniture 1,000 Posts
    Kina7246 wrote: »
    Just trying to understand how paying tax works.

    Scenario - figures rounded up to make it easy and ignoring personal allowance.
    If figures for car and fuel allowance is -£6,000 and then 6 months into the year you hand in the car, does your car and fuel allowance figure change to -£3,000 or does it change to £0 because you paid for the car at the higher rate whilst you actually had it?
    as per your example the benefit charge would change to £3000 as this is the value of the benefit received in the year.
    [SIZE=-1]To equate judgement and wisdom with occupation is at best . . . insulting.
    [/SIZE]
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