Losing job with Company Car - Tax rebate?

outgoingzero

Hi there

I've learnt I'm being made redundant (which I've been expecting for some time now), and have about 4 months left. I have a company car which affects my tax code - around £3000 of personal allowance reduction. I am a 40% tax payer as I earn around £45,000 a year.

I'll likely be without a job for the rest of the year, and am just trying to figure out how much tax rebate might be owed to me when the financial year ends.

If I only have the Company car for half of the tax year (say), does that mean:

a) it's effect on my personal allowance is halved, and I should get tax back because of this
b) because I only paid tax whilst working and I had the car during that time, the tax code was right during for that period and hence isn't relevant when working out a possible tax rebate.
c) something else

I hope I put that across clearly (I'm not sure I did!). Thanks

outgoingzero

Just to quickly check - does no one know the answer here or have I totally messed up my question?

suso

depends what you are doing after being made redundant.

If you are not working and not claiming job seekers allowance then you will be able to claim a tax refund after 4 weeks of not working. use a form called a P50, if you are claiming JSA then it depends on your total income for the year and will be repaid when either the claim ends or at the end of the year.

depends on your total income for the year, but basically you may be paying too much tax on the car, also you will not have has as much personal allowance as you are entitled to,

if you are a higher rate payer, but because you stop part way through the year does this mean that you will be a basic rate tax payer ?

outgoingzero

Thanks for that.

I'm currently expecting to have no income at all (save for minor interest <£500) in the second part of the tax year. So yes - would expect to be a basic rate payer but have paid too much tax.

The would be even more the case of the effect of the Company car on my tax code only applies for the first 6 months.

Didn't know about a P50 - thanks very much. I'm really only asking in order to try to work out roughly how much tax back I'll be entitled to when the times comes.