Company car taxcode question

englandbaby

Hi
Hoping someone can help with my query below please?

I had a company car for years and it cost me about £95 a month in tax. When I gave the car back and took the cash allowance, I expected my tax code to up to the normal one but I've only got about an extra £50 a month. When I queried it, they said I still had to pay something for the rest of this year and then my tax code will go the normal allowance. I can't get my head round why i still need to pay something when i dont have the car anymore?!

Thanks
C x

jem16

englandbaby wrote: »

I can't get my head round why i still need to pay something when i dont have the car anymore?!

Thanks
C x

Tax is divided into 12 equal amounts so you won't have paid the whole amount of tax as yet.

englandbaby

I know Im just not getting this but if I paid the right amount of tax for the months I had the car, I dont understand why I would pay it for the rest of the year??