Company Car Tax (P11D)

oufc1976

I hope this is in the right forum...

I picked up my first company car on 21st March 2014 so I'm not at all clued up on how the car tax works.

I know in principle what I will pay a month, I'm just not sure on WHEN I'll actually start paying it.

I asked my HR department and they've confirmed that they will send their P11Ds to HMRC for tax year 2013/14 by July.

My understanding of the P11D is that it lists all benefits received for that entire year.

So for me, presumably it will show that I had a company car for the last two weeks of the year, along with a month or so of critical illness cover and BUPA.

Does that mean then, that for the whole of tax year 2014/15, I will only pay for those two weeks of benefit, over the 12 months. So basically...not a lot!

And that in tax year 2015/16 I will begin to pay my full tax amount of circa £170 a month.

I'm sure it's simple...but it has my brain aching!

jasjhooty

Your company car information will be sent to HMRC on your P11D. As long as no end date for the car is shown on the P11D you will have to pay the full amount of tax in 2014/15.


P11Ds are usually processed in September/October at which time HMRC will start collecting £170 per month. However you have underpaid your tax by £170 pm for the period April to October. This underpayment will be collected via your 2015/16 tax code. To avoid being stung, it is probably wise to telephone HMRC now and tell them about our new company car now so that any underpayment arising is kept to a minimum.

ableandy

If you use the car for private use your employer should have submitted a P46(Car) to notify HMRC of the start of you having the car.

See: http://search2.hmrc.gov.uk/kb5/hmrc/forms/view.page?record=_J73DzVGt4o&formid=763

Lgas

Sorry to butt in, I have to pay company car tax on a salary sacrifice lease car used SOLELY for private use (as I also have a work vehicle for business use only), is that right?

InsideInsurance

Lgas wrote: »

Sorry to butt in, I have to pay company car tax on a salary sacrifice lease car used SOLELY for private use (as I also have a work vehicle for business use only), is that right?

If the money is coming out of your gross salary, which it would be from what you say, then it is a company car even if you dont use it for company business.

It is only if it comes out of your net salary or you have NO private use that you avoid BIK

Darcey99

Can I ask a question, as I keep going round in circles on it.
I work for the NHS and have a salary sacrifice car, what I don't understand is that within the cost of the car within the salary sacrifice I pay car tax liability each month of £53.96 but I also have had my tax allowance taken right down to 522l so am paying again for the tax on the car.