Tax code (120l) help please!!

Poppy_Jane_Parka

Hi there,

am hoping someone can help me- it may be that I dont really have anything to challenge with my work but hopefully I do!!
My annual salary is approx £28k and with a company car-
I received payslip this morning and for some reason tax code is now 120L and I am receiving less money than last month and previous months. Can this be right- our finance dept is not the best at things and has made mistakes previously, including on 2 occasions 'forgetting' process our salaries- which was fun to explain to the bank!:mad:

Any help very gratefully received!!
Poppy

zagfles

Have you not had a letter off HMRC explaining how your tax code is made up? If not you should get it soon. What is the taxable value of your company car?

Poppy_Jane_Parka

Hi Zagfles, I havent had anything as yet- we get paid on the 28th of each month- so my (probably musguided) thought was that if there had been a change I would have found out in April's payslip. I'm embarrased to admit I don't know re car- i'll try and find out just now....... Thanks!.

zagfles

Poppy_Jane_Parka wrote: »

Hi Zagfles, I havent had anything as yet- we get paid on the 28th of each month- so my (probably musguided) thought was that if there had been a change I would have found out in April's payslip. I'm embarrased to admit I don't know re car- i'll try and find out just now....... Thanks!.

This site will tell you the taxable value: http://www.whatcar.com/company-car-tax/
You might need to add any options (eg metallic paint etc) for an accurate result.

Poppy_Jane_Parka

Hi again, I'm even more embarrased to now say I have no idea. Again I should not have placed so much faith in others and taken responsibility for my own money etc. When I took the company car on, I was told it will only cost me £50 a month in tax and went with this in good faith.:embarasse my car is a 1.6 vauxhall astra- and an 11 plate. it is much bigger than i need and would be happy with 1.2 or .4 but have been told it doesnt fit the 'image'.
think i need to get in contact with our finance department to educate myself.

thanks again for any info that you may have or even for the correct questions to ask them!

Poppy

Poppy_Jane_Parka

cross- post there! i will have a look now!!

Poppy_Jane_Parka

2012/2013 2013/2014 Percentage charge 20% 21% Benefit in kind £3,983 £4,182 Tax payable at 20% £836 £836 Tax payable at 40% £1,593 £1,673 Hi there- thank you so much for this info- I've got this info-
last year it was- 2012/2013 percentage 20% BIK £3983, tax payable at 20% 836 40% £1593 for 13/14-percentage 21% BIK £4182, tax payable at 20% 836 40% £1673.

Does this mean that the longer I have it the more it will cost? car was new in 2011.

I dont have a car/mathematical mind at all so am very grateful for your help!!

Poppy

zagfles

Poppy_Jane_Parka wrote: »

2012/2013 2013/2014 Percentage charge 20% 21% Benefit in kind £3,983 £4,182 Tax payable at 20% £836 £836 Tax payable at 40% £1,593 £1,673 Hi there- thank you so much for this info- I've got this info-
last year it was- 2012/2013 percentage 20% BIK £3983, tax payable at 20% 836 40% £1593 for 13/14-percentage 21% BIK £4182, tax payable at 20% 836 40% £1673.

Does this mean that the longer I have it the more it will cost? car was new in 2011.

I dont have a car/mathematical mind at all so am very grateful for your help!!

Poppy

No but the % of the list price they charge goes up each year so it's gone up a bit. But it doesn't explain your code, you get a personal allowance of 9440 then they knock off your benefits, the car benefit is only 4182 so that would give 5258 so your code would be 525L.

Do you have any other benefits? eg private medical, does your employer pay for private fuel? Do you owe tax from previous years?

You really need the coding notice from HMRC (it's HMRC who decide your tax code, not your employer), if you don't get this in the next week or so give them a ring, see the "contact us" page on the HMRC site. http://www.hmrc.gov.uk

Poppy_Jane_Parka

thanks again (again!) Zagfles-thats what I shall do- will send an email initially asking finance to check what code they have me on, I have no other benefits from work and although initially private fuel is put on to company card I have to pay what I use for personal use back at the end of each month. You've been very helpful indeed!! I'm hoping my code is wrong- last year it seemed to change halfway through to 232l so hoping this was wrong too and I'll get a rebate!
thanks so much again!!

p00hsticks

zagfles wrote: »

No but the % of the list price they charge goes up each year so it's gone up a bit. But it doesn't explain your code, you get a personal allowance of 9440 then they knock off your benefits, the car benefit is only 4182 so that would give 5258 so your code would be 525L.

Could it be that the tax code is to cover not this years car benefit but also to collect last years ? I've had similar before, where in the first year of employment(or of getting the benefit in kind) you don't get taxed on it, because HMRC only become aware of the benefit when the employer gives them the P11D information at the end of the year. So the following year you end up with a tax code to cover not only the benefit for the current tax year, but also what is owed from the previous year.

Any

Poppy_Jane_Parka wrote: »

thanks again (again!) Zagfles-thats what I shall do- will send an email initially asking finance to check what code they have me on, I have no other benefits from work and although initially private fuel is put on to company card I have to pay what I use for personal use back at the end of each month. You've been very helpful indeed!! I'm hoping my code is wrong- last year it seemed to change halfway through to 232l so hoping this was wrong too and I'll get a rebate!
thanks so much again!!

When did you get the car?
Did you tax code changed as soon as you got the car (in reasonable time)?
Did you get P11D form last year from your employer?
Did you never received coding notice from HMRC?

Hoping your code is wrong - firstly some info would have to be put on it wrong in which case you should notice it on the number of different pieces of papers you receive...

Either something that you are not getting would have to be on P11D, or some non existing debt or again something you are not getting would have to be on the tax coding notice from HMRC.

Sometimes HMRC completely screw up, like put people on 2 cars or have wrong dates in.. sometimes payroll makes change to wrong employee... things happen.

In worse case scenario, call HMRC and ask what they have on record for you..