Help! Is my tax code right?

Lisa090982

Hi All,

I have just received this months payslip and my tax code has changed to 750L due to me now having a company car. How can I check this is the correct code?

This is the car detail:

Vauxhall Corsa
CO2 – 118
P11D - £15220.00

singhini

Ideally we need to know if your a 20% or 40% tax payer and if the car is petrol or diesel.


However, its something like this:
CO2 of 118 is = 22% BIK rate (25% if its a diesel car) https://www.fleetnews.co.uk/fleet-faq/what-are-the-current-bik-bands-/3/
So formula is something like (for a petrol car at 20% tax rate): £15,220 x 22% BIK = £3,348 x 20% tax rate = £670 annually (roughly £55 per month)


If its diesel car and your a 40% payer then its something like: £15,220 x 25% BIK = £3,805 x 40% = £1,522 (roughly £127 per month).


So lets say your tax code is 1150L (i.e. you can earn £11,500 tax free) then take off £3,805 from 11,500 and this is the amount you can earn tax free (in this example this would be £7695 (a tax code of 769L)
I'm no expert so don't rely on me please

Dazed_and_confused

The actual tax code is not really much use, you need to tell us how the code is made up.

Also, when was the company car provided?