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Company car benefit query
inglorius
Posts: 158 Forumite
in Cutting tax
Probably just being thick but can someone please try and explain the following for me:-
Had a new company car at the start of this tax year, annual BIK calculated at £3300 p/a. This sum taken off my tax allowance on a monthly basis, therefore assumed keeping up with BIK.
Gave up company car in January this year through redundancy, informed HMRC of this date, was told that they would reissue a new tax code.
New tax code duly arrived from HMRC saying that my BIK for this tax year was now £2700 - why?? I don't have use of the company car anymore, have been taxed as to the appropriate BIK when I did have it, why is this showing at all in my tax allowance now I have no use of a company car??
Had a new company car at the start of this tax year, annual BIK calculated at £3300 p/a. This sum taken off my tax allowance on a monthly basis, therefore assumed keeping up with BIK.
Gave up company car in January this year through redundancy, informed HMRC of this date, was told that they would reissue a new tax code.
New tax code duly arrived from HMRC saying that my BIK for this tax year was now £2700 - why?? I don't have use of the company car anymore, have been taxed as to the appropriate BIK when I did have it, why is this showing at all in my tax allowance now I have no use of a company car??
0
Comments
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Isn't your tax code for the entire year. You had the car for over three quarters of the year.0
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Isn't your tax code for the entire year. You had the car for over three quarters of the year.
However, if the code is 674L then there will be a refund and tax on the now reduced BIk will be deducted until 5 April.
Surely a 944L M1 code would have been better.The only thing that is constant is change.0
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