Company car

kaz_1991

Hi can anyone advise please I am with the same company and they changed our company cars in august this year. I updated the car with HMRC and removed the old car but I have seen on my HMRC account that it’s still showing both cars. I spoken to them regarding this but they said I would still have to pay car benefit on both cars till the next tax year … is this right and has anyone else had this issue.

Albermarle

kaz_1991 said:

Hi can anyone advise please I am with the same company and they changed our company cars in august this year. I updated the car with HMRC and removed the old car but I have seen on my HMRC account that it’s still showing both cars. I spoken to them regarding this but they said I would still have to pay car benefit on both cars till the next tax year … is this right and has anyone else had this issue.

It is not right. Maybe it is your employer who has to inform them rather than you?

Dazed_and_C0nfused

kaz_1991 said:

Hi can anyone advise please I am with the same company and they changed our company cars in august this year. I updated the car with HMRC and removed the old car but I have seen on my HMRC account that it’s still showing both cars. I spoken to them regarding this but they said I would still have to pay car benefit on both cars till the next tax year … is this right and has anyone else had this issue.

It is correct yes.

You should have a deduction in your tax code that relates to both cars.

Using completely made up figures it might be  £4,000 in total.  Which represents say £1,500 for the period you had the first car.  And £2,500 for the new car, for the benefit from when this was first available to 5 April 2025.

It's only when the next tax year starts that your code would take into account just the new car.

Hoenir

Employers are responsible for changes.  

Dazed_and_C0nfused

Hoenir said:

Employers are responsible for changes.  

Employees are able to make Car Benefit updates on their Personal Tax Account now.

Although ultimately it is the P11D submitted by the employer that established the final position.

Albermarle

Dazed_and_C0nfused said:

kaz_1991 said:

Hi can anyone advise please I am with the same company and they changed our company cars in august this year. I updated the car with HMRC and removed the old car but I have seen on my HMRC account that it’s still showing both cars. I spoken to them regarding this but they said I would still have to pay car benefit on both cars till the next tax year … is this right and has anyone else had this issue.

It is correct yes.

You should have a deduction in your tax code that relates to both cars.

Using completely made up figures it might be  £4,000 in total.  Which represents say £1,500 for the period you had the first car.  And £2,500 for the new car, for the benefit from when this was first available to 5 April 2025.

It's only when the next tax year starts that your code would take into account just the new car.

I was not correct. The above is correct.

What I was thinking is that once when I was working , I changed company cars and the full value of both was counted for the first 12 months,  pushing up my tax bill. This was due to the employer only informing HMRC I had a new car, without telling them I no longer had use of the old car !