Adding BIK to self assessment

Beckygko

Sorry … tax question after days of googling without success 😬. 

I have a salary sacrifice car, the BIK reduces my tax code to 652L. I’ve submitted a tax return for the first time this year (HIBC) and HMRC have reverted my tax code back to 1257L. 

I spoke to them and they felt this was correct and are trying to give me a rebate 🙈, but I know it isn’t as it’s been reduced for all the years I’ve had the car, and the BIK being taken off the tax code has been confirmed as correct process by my payroll and the lease company. 

Does anyone know where on the self assessment form I can add the BIK amount on so they re-adjust the code? Or will i need to call them again? 

sheramber

Notes for employment pages explain to copy entries on P11D that your employer gives you.

https://assets.publishing.service.gov.uk/media/64aebb46c033c100108061a7/SA102_Notes-2023.pdf

Beckygko

Thank you for your reply, unfortunately the advice in here only covers to not include salary sacrifice figures on the normal bit regarding company cars, as otherwise it adds it to your income. The tax office also confirmed that a salary sacrifice doesn’t need to be declared on the car bit as it isn’t income. I can’t work out how to ensure they still take the BIK into account on my tax code 🤦‍♀️

sheramber

Did you not read the bit in bold below?Benefits from your employment

 If your employer has ‘payrolled’ your benefits and expenses (this means the tax was deducted from your pay and included in your P60) do not include them in boxes 9 to 20.

If not, your employer must give you details of your benefits and expenses on a form P11D, ‘Expenses and benefits’. Put the details from your P11D in boxes 9 to 20. Each box number on form P11D corresponds to the same box number in this section.
All benefits and expenses provided add to your income and can include: •
 company cars and fuel •
 interest-free and low interest loans •
private medical and dental insurance 
For more on benefits from your employment go to www.gov.uk/tax-company-benefits 

Dazed_and_C0nfused

Beckygko said:

Sorry … tax question after days of googling without success 😬. 

I have a salary sacrifice car, the BIK reduces my tax code to 652L. I’ve submitted a tax return for the first time this year (HIBC) and HMRC have reverted my tax code back to 1257L. 

I spoke to them and they felt this was correct and are trying to give me a rebate 🙈, but I know it isn’t as it’s been reduced for all the years I’ve had the car, and the BIK being taken off the tax code has been confirmed as correct process by my payroll and the lease company. 

Does anyone know where on the self assessment form I can add the BIK amount on so they re-adjust the code? Or will i need to call them again? 

Was your current (2024-25) tax code 652L before submitting the tax return?

And then a few days after submitting your 2023-24 Self Assessment return your tax code changed to 1257L?

Nothing you put on an amended tax return now would mean HMRC will suddenly include car benefit in your current tax code.

Are you certain your employer hasn't started payrolling company benefits from the start of the current tax year?

Beckygko

Hi Sheramber, yes I did. When I added it in that box it added the BIK amount to my income, HMRC advised me this was incorrect as the company don’t pay anything towards the car they said I don’t need to declare it and advised me to remove it, but that also changed the tax code. It needs to be reflected in the tax code but not added to my income.

I’ll call them again on Monday, thanks for your help. 

Beckygko

Hi Dazed and confused.

Yea that’s what happened. I didn’t think of that, they haven’t notified me if they have. I’ll go back to payroll and HMRC. Thank you 

Dazed_and_C0nfused

Beckygko said:

Hi Sheramber, yes I did. When I added it in that box it added the BIK amount to my income, HMRC advised me this was incorrect as the company don’t pay anything towards the car they said I don’t need to declare it and advised me to remove it, but that also changed the tax code. It needs to be reflected in the tax code but not added to my income.

I’ll call them again on Monday, thanks for your help. 

If you have a company car then you have to pay tax on it one way or the other, it's either payrolled and doesn't show in your tax code or it isn't payrolled and you should have a tax code deduction for the benefit in kind.

I would find out the facts (for both last tax year and this) from your employer before contacting HMRC again.