Tax Code..is 195L a fair code?

Tc7_3

My tax code has changed from 229L to 195L.

My company car has been replaced but other than that I cant think of why the change has been made. I assume 195L is worse than 229L.
Is it much worse?

Thanks for your help. I really dont trust our tax office.

Tc

Debt_Free_Chick

You have approx £340 less tax free income now. At 22% tax, you'll pay an extra £74.80 pa and £136 at 40%.

The notice of coding should have set out your allowances on the left hand side and the deductions made e.g. for your Co car on the right hand side. You should be able to check that these deductions are right. If you're not sure, post them here - but we may need more details to confirm the position.

HTH

Tc7_3

Thanks HTH

The breakdown is...
Personal Allowance...£5225
Car benefit..............£3273
which makes a tax free amount of....£1952

Tc

Debt_Free_Chick

Tc7 wrote: »

Thanks HTH

The breakdown is...
Personal Allowance...£5225
Car benefit..............£3273
which makes a tax free amount of....£1952

Tc

Follow the details in the HMRC helpsheet to check the amount deducted for the car benefit. If you had two different cars last tax year, there may be an adjustment as each car would have its own taxable benefit, which is then pro-rata for the number of days you had each car.

HTH

Tc7_3

That could be it. i did have two cars last year. Swapped a smaller one for a larger one.

So my code isnt shocking then?

Tc

Debt_Free_Chick

Tc7 wrote: »

So my code isnt shocking then?

Tc

Depends on what you mean by shocking

Is it right? You can check that by filling in the helpsheet.

Would I pay £1,300 pa (assuming 40% tax) for the "privilege" of having a company car? Nope But it really depends on your own priorities. I had company cars for years, but then switched to a cash allowance instead. But then ... I run a L-reg Mitsubishi Shogun, which doubles as a dog-carrier - not quite the same standard as your average company car

Tc7_3

Thanks, Ill look into that!

Tc