Company Car & Tax Code Help?

Ranners1983

Hello Everyone
Could you shine some light on a conversation I have had with HMRC please?

I gave my compnay car back on September 25th and logged this on my personal tax account online. My employer has now started paying me a cash for cars payment instead.

However, in my December pay, I noticed that I appeared to not be getting the full gain from this which I had perceived to be the tax relief from not having a BIK and also the new CFC payment.

My tax code when I had my car was C453L from April to June, it then went to C478L in July and then C511L from August to September. In my October payslip it changed to C908L and has been there since.

Although my persona ltax account says I do not have the car anymore, HMRC have advised that I still need to pay tax on it until April? They did give me a refund in my October pay of around £450 but no other refund has been produced to date.

From the lady this morning I managed to gather the following:
The tax required for the year was 20% of the BIK which was £1488 meaning approximately £124 per month. Having now given the car back I will now continue to be taxed £58 per month because I have not paid enough?

To add to this they said my employer had sent them my P11D and because of this my code is changing again to C904L!

Is this a normal situation to be in?
Will my tax code stay at this until April?
Will I have to call them in April for a refund (or even worse to pay a bill)?

So many questions, Im really sorry!!!

Dazed_and_confused

HMRC have advised that I still need to pay tax on it until April?

That is correct. But you are only paying tax on the reduced benefit figure applicable for the period from April to September.

They did give me a refund in my October pay of around £450 but no other refund has been produced to date.

Can you explain what other refund you think should be due?

Is this a normal situation to be in?
Will my tax code stay at this until April?
Will I have to call them in April for a refund (or even worse to pay a bill)?

Yes
Yes, unless there is another change which affects your tax code.
Why do you think a further tax refund is due? Ultimately a tax code is just a provisional attempt to collect the correct amount of tax. There may need to be some adjustment after the end of the tax year so you could end up with a bill or refund but not for the reason you seem to be thinking.

For example you may now be using your own car for business travel and if your employer is paying you less than the maximum tax free 45p/mile then you may be able to claim tax relief on the difference.