Reclaiming Tax!

MikeAUK

Hi,

Not sure if this is right place (if not MODS please do not just delete or move without letting me know )


I am really struggling to peice together how much I should have paid in tax over the year. Basically I had a company car from Feb-Oct but my company did not tell HMRC so I paid retrospectively for it I think. As a result I started employment on a 647L code for the first 8 weeks, then went to 747L after this until my final payslip which was 236L??? I then in October started a new job and am now on 747L again. Really confused by all this and now idea how to realistically judge if I am owed money or not....

OldGreyFox

The Tax Board is here: http://forums.moneysavingexpert.com/forumdisplay.php?f=22

MikeAUK

hmmm, have looked but just don't get it.....have tried direct gov but just can not understand the process.

Sophs-mum

The 647L tax code was for the previous tax year meaning in that year you had a "personal allowance" of £6475 i.e this is the amount of tax free income you were entitled to in the year. This was the standard figure for anyone under 65 years old. The 747L code meant you had the £7475 personal allowance for the 2011/12 tax year. Again this is the standard figure for people under 65 who have no additions or deductions to their code. when it dropped to 236L this was HMRC making the required adjustment to your personal allowance to account for the company car. When you started your new job did you give them your P45 from your previous employment? I am sorry to tell you that your tax code is not correct at the moment as your new employer has given you your "full years" personal allowance again but, as the tax code works cumulatively, you should still have a restriction in your code for the company car, albeit a smaller restriction as you have not had the use of the car all year. You need to phone HMRC and advise them of the date you ceased having use of the company car and explain that your current employer is operating tax code 747L. They will make the required adjustments for you. As it is, you MAY have underpaid tax this year.
I used to work for HMRC and unfortunately people don't realise it is their responsibility to inform HMRC of things such as having a company car - nobody seems to get informed of this and it's obviously not something you would presume! If you call them though they'll get it straightened out for you. Hope this makes sense, been a while since I've tried to explain taxation!