Help with income tax :(

DebtClearer

Guys I couldn't find a section for this so would be grateful if anyone can help. I do not understand income tax and the tax office just confuse me more. Anyway I will explain...

Point 1) In Jan 2011 in worked for Company A and was given a company car. I barely did any business miles in this due to the role being a bit of a joke and not really existing. Anyway I had this car until October 2011 when I resigned and started my current job. I think I only made one payment of £100ish in September 2011 towards this car. I didn't know I was meant to tell the tax office and I don't think my company told them either.

Point 2) When I started at my new company in October I was on tax code 747L, earning £23,400 (I since learned this 747L is a temporary tax code?). This continued until my March pay. In April I recieved a taxable £500 bonus. However I barely saw any of it, my tax code changed to 13L. Just looked at my May pay and I am still on 13L even without bonus and my monthly pay has reduced net by £140.

Point 3) I rang tax office and they were just confused. He said he thought I would owe some car tax from the last financial year however this wasn;t yet being collected. He then move me on to a new tax code 548L. All my colleagues who earn the same as me are on 810L and I have been told I should be on the same. Really confused....I'm aware I owe something on the car but I'm totally confused about the tax code I should be on and what I am actually owed. I don;t know how best to deal with this and get things in order.

Anyone who understand tax and can see what may have happened here I would really appreciate your advice!

p00hsticks

This is the board you really need to be posting on;

http://forums.moneysavingexpert.com/forumdisplay.php?f=22

I'm not sure if anyone can move it across.

I'm noy an expert, but I do know that 747L was the standard tax code for last tax year, just as 810L is for this year.

You should really have had a tax coding notice from HMRC to explain why you have been given non-standard codes of 13L and 548L for this tax year.

It sounds like the company car was a taxable 'benefit in kind'. If this is the case, then if you'd still been employed by company A at the end of the tax year (April 5th 2012), then I think they'd be shortly issuing both you and HMRC with a P11D form showing how much this benefit in kind is worth, and HMRC would then use that to recalculate your tax code so that you pay back the tax due via your monthly salary payments.

But I'm not sure how that works if you leave the employment during the year - the people over on the 'Cutting Tax' board should know. If the P11D was sent to HMRC when you left, then it may be that they have used this info to amend your code - but I think you should also have had a copy.