Tax Code and Car Allowance

GSXRCarlos

Hi all,

I've had a search and can't find the answer so here's a question ...

I'm paid a salary, plus car allowance (as it's shown on my pay slip)

My basic salary is 21500 + 5,000 for car allowance

Should my tax code be 810L or something lower?

At my old place i had a company car and maybe this is keeping my tax code lower than i expect

Can someone explain it to me?

Thanks

CLAPTON

as you are paid a car allowance it is simply added to your salary and tax and NI are deducted just as for the 'normal' part of your salary

so there should be no change to your taxcode as the tax is already being collected.

if you had a company car then that would be a benefit in kind and your tax code would be adjusted to ensure that correct tax was collected

GSXRCarlos

Thanks Clapton.

I changed jobs in May, so presumably my tax code would have been correct from April until mid may, but not for my current job.

Given that i'm now on Car allowance rather than company car, my tax code should be somewhere closer to 8100, is that correct? (my tax code is currently 526L)

CLAPTON

probably your tax code is incorrect but one needs to know the detail

speak to HMRC

GSXRCarlos

CLAPTON,

I've been in touch with HMRC and i'm expecting t to rise, i'll add a note here when i know more for other people's reference

Thanks for your help