Returning company car - Car tax question

carnut1234

Hello All,

Im starting a new role within my company which means im returning my company car.

At the same time i need a car and have order a new car from Fords.

My new role starts 1st august and so will my new wage which is an increase to compensate the loss of the company car.

work are happy for me to decide when to return the company car but what im trying to do is make sure i dont get stung with company car tax and my car payment within the same month.

Im thinking on returning the car on the 25th July and telling the hmrc straight away so they can make the amendments.

my first car payment will be 28th August. in doing this will my tax code have changed in August so im not paying the company car tax anymore?

you help would be great

dan

foxy-stoat

You will probably find that HMRC wont work that quickly, your company will make the necessary adjustments to your income tax deductions, if you do pay slightly more tax in the first month then you will get a refund over the rest of the months or a one off payment.

AdrianC

Whether it changes immediately or not, the tax you pay over the year will reflect the exact period the CoCar was available - so if the change is delayed, you'll pay a bit less tax over the remaining months to balance it all out.

Any short term impact will be relatively small - and it's your payroll people which will make it, not you directly.

Scrapit

You think HMRC or your firm will be that efficient? You'll need to get your tax code changed. And the company need to square it up on their p11d .Mine took 6months altogether.