General questions on Tax

Johnbyrne888

I need some advise, my new job (been there 3 months) pays 56k just got a company car after hire car, quite pricy, anyway, can I wait until next October to do a self tax assessment? Then I assume I will owe a large % of tax due to getting child benefit for two children, I need to start saving for this now, am I correct in saying next Oct18 I can declare this 56k plus car and. I can pay tax on child benefit in Jan19? Then it would continue this way every year?
Also I have been given a fuel Card, never had one before, am I correct in saying on my tax return I can get back 40p per business mile on the company car? How does the fuel car come into play? No one from my company has advised me it just came in post a day after the car

BoGoF

You are correct in what you say up to the 40p per mile for business mileage. If you have a company car and your employer is paying for fuel then you will not be able to claim anything. In fact if you do not reimbursr your employer for personal mileage you will have a fuel benefit also.

BoGoF

Should have also mentioned it will not be a % of tax you will owe but you will be repaying the child benefit you have received.

redpete

BoGoF wrote: »

You are correct in what you say up to the 40p per mile for business mileage.

Not really, you can claim tax relief of up to 45p per mile, so you wont get 45p per mile from the taxman (or from my money that I pay in taxes!)

xylophone

Had you thought of increasing your pension contributions?

http://www.pruadviser.co.uk/content/knowledge/technical-centre/child_benefit_trap/

BoGoF

Redpete - I was saying OP was correct until he started talking mileage. In his case he can claim nothing.

00ec25

Johnbyrne888 wrote: »

I need some advise, my new job (been there 3 months) pays 56k just got a company car after hire car, quite pricy, anyway, can I wait until next October to do a self tax assessment? Then I assume I will owe a large % of tax due to getting child benefit for two children, I need to start saving for this now, am I correct in saying next Oct18 I can declare this 56k plus car and. I can pay tax on child benefit in Jan19? Then it would continue this way every year?

so 17/18 tax year is the first time you have earned enough to go over the £45,000pa higher rate tax threshold?

in which case you can register for self assessment by 5th October in the year after that tax year you are submitting a return for as explained here:

https://www.gov.uk/log-in-file-self-assessment-tax-return/register-if-youre-not-self-employed

however, the fact you have a company car and a fuel card for it means you should inform HMRC of that fact so your tax code can be adjusted to collect what you owe under PAYE.

read this:
https://www.gov.uk/tax-company-benefits

as for child benefit since you know you are not entitled to it either be proactive and sort it out now or wait and repay it

you can easily research your options yourself:
https://www.gov.uk/repay-child-benefit-overpayments
I particularly like the sentence "If you think you’ve been paid too much Child Benefit contact the Child Benefit Office straight away - don’t wait for the Child Benefit Office to write to you."

Johnbyrne888 wrote: »

Also I have been given a fuel Card, never had one before, am I correct in saying on my tax return I can get back 40p per business mile on the company car? How does the fuel car come into play? No one from my company has advised me it just came in post a day after the car

so you have a car whose costs are paid in full by your employer. You do not have to spend 1p of your own money on the car so why do you think you have a need (or right) to claim anything?
You will have to pay tax on the two benefits you receive:
a) the "cost" of the car - use the calculator here to see how much that will be https://www.gov.uk/tax-company-benefits/tax-on-company-cars

b) the private use fuel that is paid for you by your employer. Your fuel card pays for all fuel you use, including private use. Unless you reimburse your employer for that cost you are rightly taxed on it as though it were simply extra salary you had been paid

I am surprised your colleagues are not able to explain this to you if you work for a company paying 56k and giving company cars

MichelleUK

Did you hire the car yourself or did your new company pay for it? If so, that will also be subject to a car benefit charge.

I hope you chose a hybrid and/or low emissions car otherwise you are probably in for a very nasty shock. The car benefit rates are very high as it is and and due to rise considerably over the next couple of years. Also, if you were given the option of a car or an allowance, there are nasty changes as to how that is taxed too.

Johnbyrne888

Thanks I'm thinking of opting out of the fuel card and just closly logging my miles

Johnbyrne888

Yes the hire car was provided by the company but I registered it with the tax office so my tax code was adjusted, my new car has lower emissions but higher list price but I'm hoping it will be roughly the same

Johnbyrne888

Many thanks for all the links and info, it's a bit manic at my new company with no one really offering advice, I guess they assume I know everything, also the payroll dept seem very inexperienced