New Company car tax query

bclark

I am starting a new job in a couple of weeks and I am getting a company car as part of that. I spoke to my new employers yesterday and they said that in my first week I would sit down with the fleet manager and chose a car but that in the meantime I would be given a car that they had on fleet that is due to go back to the lease company soon. They did say though that the car I will be getting for a couple of months is well above my normal banding and is a Mercedes C180 AMG.

I obviously have no problems about driving a car like this for a few months but I am just wondering what all of this will mean for tax. When I chose my permanent car I am very aware that I will want to get the nicest car I can with the lowest Co2 banding for tax reasons but this Mercedes won’t have a particularly low Co2 banding. Will I pay the relevant tax on this temporary car for a couple of months and then it get automatically changed over to the permanent car or will it take a little while before the tax gets sorted out and I will ultimately only pay for the permanent car?

Any advice on how this will work would be greatly appreciated as the only time I ever had a company car before, for about 9 months years ago, my tax was a mess for a long time afterwards because of all the forms filtering through over time.

Any

Hi,
This would be better placed on Cutting tax board.
But I will answer anyway.

Pretty much depends how your company reports it. By the book they should immediately report this car by completing form P46 new car and once you get the new car you will call HMRC to tell them of the change.
Make sure this is done because many employers don't do that, only report in July following end of tax year on P11D and driver get massive one off bill catching up with them.

You can always call HMRC and make sure all changes are done in due course and on time. Employer cannot even change the car info during the year, there used to be a form but they now withdrew it, god knows why. Once the employer will report your details (ie that you work for them - giving them P45/P46 etc ensures this) you can just call them and they will make changes there and then on the system for you. Then just keep a look out for new tax codes and making sure employer applies them.