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Company car benefit query

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??

Comments

  • rs65
    rs65 Posts: 5,682 Forumite
    Ninth Anniversary 1,000 Posts Name Dropper Combo Breaker
    Isn't your tax code for the entire year. You had the car for over three quarters of the year.
  • zygurat789
    zygurat789 Posts: 4,263 Forumite
    Part of the Furniture Combo Breaker
    rs65 wrote: »
    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.
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