Company Car tax after handing back Company Car

Dom3663

Hi,

I've had a company car which gave me a 566L code for the last 7 months.

Handed back and I'm now on 844L.

While I appreciate it's a slight increase in take home pay - I can't help but feel this is a bad deal.

The 566L code knocked £130 off my take home wage, but the 844L code now costs me £80 on my take home wage for the remainder of the tax year.

The end result of this is me gaining £50 take home pay per month for not having the car. I was kind of expected that the company car cost me £130 per month, so not having it would put £130 (ish) back on my take home pay(?).

If I kept the car, the retrospective net result would have only actually been £50 per month for the remaining 5 months of tax year. Difference between £130 and the now £80.

-12 months x £130 = £1560 total

-7 months x £130 = £910 PLUS 5 months x £400 = £1310 total.

£1310 is not 7/12th of £1560

Is this right??

sheramber

It was it was explained to you on your earlier post. 

https://forums.moneysavingexpert.com/discussion/comment/81173349#Comment_81173349