Tax code with company car benefit

Evening 

For the first time in my career l have a company car.  I can use the car personally as well as company usage.  The company do NOT pay for fuel other than company business mileage rates.

I am unclear if my tax code is correct.  On my tax code notice under section "less car benefit" the figure is £10256.  Is this likely to be correct?  And why is that so different to BIK figure which is listed at approx £4k on tax calculators?  Am sure its a simple misunderstanding on my part.  Can anyone point me in the right direction?  I don't want hitting with a bill if l am underpaying.
thanks

Comments

  • Dazed_and_C0nfused
    Dazed_and_C0nfused Posts: 13,457 Forumite
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    edited 20 July 2023 at 5:31PM
    Evening 

    For the first time in my career l have a company car.  I can use the car personally as well as company usage.  The company do NOT pay for fuel other than company business mileage rates.

    I am unclear if my tax code is correct.  On my tax code notice under section "less car benefit" the figure is £10256.  Is this likely to be correct?  And why is that so different to BIK figure which is listed at approx £4k on tax calculators?  Am sure its a simple misunderstanding on my part.  Can anyone point me in the right direction?  I don't want hitting with a bill if l am underpaying.
    thanks
    The tax due on £10,256 could easily be £4k. 

    Have you misunderstood the difference between the benefit and the tax liability arising from the benefit?

    Unless you can provide all the pertinent details it's impossible to know if £10,256 is correct.  Car benefit can easily be 35% (maybe more nowadays!) of the manufacturer's list price of the vehicle.
  • Albermarle
    Albermarle Posts: 22,119 Forumite
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    As above if the Benefit in kind amount is £4K, then your tax code has to be adjusted a lot more than that for the £4K to be collected.
  • Jeremy535897
    Jeremy535897 Posts: 10,427 Forumite
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    As above if the Benefit in kind amount is £4K, then your tax code has to be adjusted a lot more than that for the £4K to be collected.
    You mean if the tax on the benefit in kind is £4,000.
  • Thank you all
  • Albermarle
    Albermarle Posts: 22,119 Forumite
    First Anniversary First Post Name Dropper
    As above if the Benefit in kind amount is £4K, then your tax code has to be adjusted a lot more than that for the £4K to be collected.
    You mean if the tax on the benefit in kind is £4,000.
    Yes, should have been clearer.
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