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

Kina7246

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?

dori2o

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.