Company car Tax

Le_Kirk

When I had a company car, there was nothing shown on pay slip, however, every year there was something called a P11D and this took care of every benefit in kind, company car, BUPA etc.

Scrapit

photome said:

DoaM said:

Scrapit said:

Ok having read the answers above my experince is your tax code will be changed and there is no BIK or company car listed on a pay slip. From the gov website 1250l is the current tax code most should have.

So your experience differs from mine. I work for a global company with ~120k employees worldwide, and several thousand in the UK. All our UK employees with company cars have the BIK on their pay slips (defined as Car Ben PY). Other BIK elements are listed in the same location (e.g. I pay monthly as BIK for global travel insurance, not that it's much use at the moment).

I have a company car and my tax code is adjusted by the BIK amount.

I am confused as to how you pay  the tax on the  BIK for your car as the tax code denotes how much tax you pay

The tax code comes down therefore the tax threshold is lower and your tax free allowance is reduced so you pay quicker. The money then comes out as your income tax.

photome

Scrapit said:

photome said:

DoaM said:

Scrapit said:

Ok having read the answers above my experince is your tax code will be changed and there is no BIK or company car listed on a pay slip. From the gov website 1250l is the current tax code most should have.

So your experience differs from mine. I work for a global company with ~120k employees worldwide, and several thousand in the UK. All our UK employees with company cars have the BIK on their pay slips (defined as Car Ben PY). Other BIK elements are listed in the same location (e.g. I pay monthly as BIK for global travel insurance, not that it's much use at the moment).

I have a company car and my tax code is adjusted by the BIK amount.

I am confused as to how you pay  the tax on the  BIK for your car as the tax code denotes how much tax you pay

The tax code comes down therefore the tax threshold is lower and your tax free allowance is reduced so you pay quicker. The money then comes out as your income tax.

Yes I understand that, thats exactly how I pay

What I didnt understand is how some peoples tax code doesnt change

tonybird1979

Ive looked at my gov tax portal now and i dont have a company car listed (theres a section all for cars etc). So it looks like im going to owe them money , completely not my fault . I've emailed payroll again to hurry it up before it gets ridiculous . You are able to add the car yourself but theres alot of details in regards to the car i dont know, so it looks like im stuck waiting on my company to sort it out , and with this damn virus around this could take ages ....
Im in a mindset of bouncing this damn charge back at the company for not sorting it out !!

cheers

sheramber

photome said:

Scrapit said:

photome said:

DoaM said:

Scrapit said:

Ok having read the answers above my experince is your tax code will be changed and there is no BIK or company car listed on a pay slip. From the gov website 1250l is the current tax code most should have.

So your experience differs from mine. I work for a global company with ~120k employees worldwide, and several thousand in the UK. All our UK employees with company cars have the BIK on their pay slips (defined as Car Ben PY). Other BIK elements are listed in the same location (e.g. I pay monthly as BIK for global travel insurance, not that it's much use at the moment).

I have a company car and my tax code is adjusted by the BIK amount.

I am confused as to how you pay  the tax on the  BIK for your car as the tax code denotes how much tax you pay

The tax code comes down therefore the tax threshold is lower and your tax free allowance is reduced so you pay quicker. The money then comes out as your income tax.

Yes I understand that, thats exactly how I pay

What I didnt understand is how some peoples tax code doesnt change

Because the value of the car benefit is included  is payrolled i.e. it is included on the payslip as a value added to the salary  

photome

sheramber said:

photome said:

Scrapit said:

photome said:

DoaM said:

Scrapit said:

Ok having read the answers above my experince is your tax code will be changed and there is no BIK or company car listed on a pay slip. From the gov website 1250l is the current tax code most should have.

So your experience differs from mine. I work for a global company with ~120k employees worldwide, and several thousand in the UK. All our UK employees with company cars have the BIK on their pay slips (defined as Car Ben PY). Other BIK elements are listed in the same location (e.g. I pay monthly as BIK for global travel insurance, not that it's much use at the moment).

I have a company car and my tax code is adjusted by the BIK amount.

I am confused as to how you pay  the tax on the  BIK for your car as the tax code denotes how much tax you pay

The tax code comes down therefore the tax threshold is lower and your tax free allowance is reduced so you pay quicker. The money then comes out as your income tax.

Yes I understand that, thats exactly how I pay

What I didnt understand is how some peoples tax code doesnt change

Because the value of the car benefit is included  is payrolled i.e. it is included on the payslip as a value added to the salary  

I see , thanks, yes that makes sense

photome

tonybird1979 said:

Ive looked at my gov tax portal now and i dont have a company car listed (theres a section all for cars etc). So it looks like im going to owe them money , completely not my fault . I've emailed payroll again to hurry it up before it gets ridiculous . You are able to add the car yourself but theres alot of details in regards to the car i dont know, so it looks like im stuck waiting on my company to sort it out , and with this damn virus around this could take ages ....
Im in a mindset of bouncing this damn charge back at the company for not sorting it out !!

cheers

you can be proactive ,work out what it should cost you and put that money aside each month

DoaM

sheramber said:

photome said:

Scrapit said:

photome said:

DoaM said:

Scrapit said:

Ok having read the answers above my experince is your tax code will be changed and there is no BIK or company car listed on a pay slip. From the gov website 1250l is the current tax code most should have.

So your experience differs from mine. I work for a global company with ~120k employees worldwide, and several thousand in the UK. All our UK employees with company cars have the BIK on their pay slips (defined as Car Ben PY). Other BIK elements are listed in the same location (e.g. I pay monthly as BIK for global travel insurance, not that it's much use at the moment).

I have a company car and my tax code is adjusted by the BIK amount.

I am confused as to how you pay  the tax on the  BIK for your car as the tax code denotes how much tax you pay

The tax code comes down therefore the tax threshold is lower and your tax free allowance is reduced so you pay quicker. The money then comes out as your income tax.

Yes I understand that, thats exactly how I pay

What I didnt understand is how some peoples tax code doesnt change

Because the value of the car benefit is included  is payrolled i.e. it is included on the payslip as a value added to the salary  

Which was what I identified in my earlier post.

Bigphil1474

OP, bear in mind, that if the vehicle is solely for work use, i.e. if you are not allowed to use it privately, then there's no BIK, no tax. Usually it's all sorted out on P11D at the end of the tax year, they'll most likely drop your tax free allowance right down to make up for the shortfall from November to March, and the expected gain for this year. You wouldn't normally pay the tax, just get a lower net salary, so plan for your net salary dropping by the £100 odd suggested earlier. 

Car_54

sheramber said:

photome said:

Scrapit said:

photome said:

DoaM said:

Scrapit said:

Ok having read the answers above my experince is your tax code will be changed and there is no BIK or company car listed on a pay slip. From the gov website 1250l is the current tax code most should have.

So your experience differs from mine. I work for a global company with ~120k employees worldwide, and several thousand in the UK. All our UK employees with company cars have the BIK on their pay slips (defined as Car Ben PY). Other BIK elements are listed in the same location (e.g. I pay monthly as BIK for global travel insurance, not that it's much use at the moment).

I have a company car and my tax code is adjusted by the BIK amount.

I am confused as to how you pay  the tax on the  BIK for your car as the tax code denotes how much tax you pay

The tax code comes down therefore the tax threshold is lower and your tax free allowance is reduced so you pay quicker. The money then comes out as your income tax.

Yes I understand that, thats exactly how I pay

What I didnt understand is how some peoples tax code doesnt change

Because the value of the car benefit is included  is payrolled i.e. it is included on the payslip as a value added to the salary  

I have never seen a  BIK value shown on a payslip. If it is, it must be as an "info only" item, i.e. non-cash, and not included in the calculation.