Tax code change re company car

dawsheath

My tax code is still 657L even though my company carcwent back six months ago. When will this change

Dazed_and_C0nfused

Have you checked gov.uk to see how the 657L code has been calculated?

Does it definitely include Car Benefit?

unholyangel

Did you inform them at the time that you handed back the car? 

dawsheath

i was advised by the person who deals with the wages in our small company had informed the tax office.

unholyangel

dawsheath said:

i was advised by the person who deals with the wages in our small company had informed the tax office.

Ultimately you need to look at what's in your tax code, but did you tax code change after you handed the car back? I would expect it to increase as previously the car benefit would have been in at say 6k but if you handed it back halfway through the year then that would be apportioned to 3k. 

The fact you say the code is "still" 657L leads me to believe the car hasn't been removed at all. Because if they had been notified and changed your code, accordingly, your code should have changed again for april as we're into a new tax year and you wouldn't have had the car at all this tax year. 

Also, when does your employer say they notified them and how? Phone call, letter, p11d? 

dawsheath

I will try and find out how they were informed, I have just looked at my April payslip and my tax code is now 657L it just doesn’t make sense

Dazed_and_C0nfused

But why is it 657L?

It could be a different deduction such as tax owed from a previous tax year, has replaced the Car Benefit.

Until you know how the 657L has been arrived at you are just assuming it is due to Car Benefit.

dawsheath

I have been advised the tax office should have been advised by way of the p11d. The business changed hand on the 1st November that’s why the cat went back. It’s difficult for me to check exactly when the tax office were advised. I really appreciate your advice.
thank you

Dazed_and_C0nfused

dawsheath said:

I have been advised the tax office should have been advised by way of the p11d. The business changed hand on the 1st November that’s why the cat went back. It’s difficult for me to check exactly when the tax office were advised. I really appreciate your advice.
thank you

That would be highly unusual.

If you have the car back 6 months ago that was mid way through the 2019:20 tax year.

P11D's for 2019:20 aren't usually submitted until after the tax year ends.  Which was 3 weeks ago. And they don't have to be sent to HMRC until July 2020.  But it could be different if the business ended?

Checking your Personal Tax Account really is the best starting point.

penners324

Check your HMRC online account