Handed back company car - tax code has been adjusted ... but not to what I expected?

Gunner98

Hi,
Thanks for that, yes it’s exactly £1860. Yep no W1, X or M1 just 765L.

Dom3663

Resurrecting an old thread here, as I've assumed thr OPs point too.

566L code on a company car for 7 months.
Handed back and now on 844L.
While I appreciate it's a slight increase in take home pay - I can't help but feel it's a bad deal.

The 566 code knocked £130 off my take home wage, but the 844 code still costs me £80 on my take home wage.
The end result of this is saving me £50 per month for not having the car.  Kind of expected that the company car cost me £130, so not having it would save me £130(?). 

I should have kept the car as the retrospective net result would have only actually been £50 per month.

12 months x £130 = £1560 total
7 months x £130 = £910 PLUS 5 months x £80 = £1310 total.

£1310 is not 7/12th of £1560...

Hmm...

Grumpy_chap

The effect of no longer having a company car will not be fully felt (benefit) until the new tax year starts in April.
Your code for this year still needs to reflect the proportion of time in the year that you had a company car.

Dazed_and_C0nfused

Dom3663 said:

Resurrecting an old thread here, as I've assumed thr OPs point too.

566L code on a company car for 7 months.
Handed back and now on 844L.
While I appreciate it's a slight increase in take home pay - I can't help but feel it's a bad deal.

The 566 code knocked £130 off my take home wage, but the 844 code still costs me £80 on my take home wage.
The end result of this is saving me £50 per month for not having the car.  Kind of expected that the company car cost me £130, so not having it would save me £130(?). 

I should have kept the car as the retrospective net result would have only actually been £50 per month.

12 months x £130 = £1560 total
7 months x £130 = £910 PLUS 5 months x £80 = £1310 total.

£1310 is not 7/12th of £1560...

Hmm...

You are completely overlooking that fact that the tax year changes in April and, based on what you have posted, you will then no longer have a reduced tax code from a company car perspective.

The fact is you have had a company car in this tax year so your tax code needs to reflect that.

Maybe if you posted your take home pay figure for final pay period on 566L, and first and second pay periods with tax code 844(L?) all will become clearer.

penners324

Also over looking the fact the above sums only work if they have an M1 or X after the tax code.

It's likely to be a cumulative tax code so likely to be correct