Company Car Tax!

Penguin_

MattMattMattUK said:

Rywid12 said:

MattMattMattUK said:

Rywid12 said:

MattMattMattUK said:

Rywid12 said:

Penguin_ said:

They don't, or at least shouldn't, back date it to April. They should be using the date you started using the car & calculating the Benefit In Kind tax from that date. 

I’ve spoken with three people now at the HMRC who have all said that’s correct though so I’m not really sure what I do from here though?

What does it say on your pay slips regarding the amount deducted for this? What is the car?

My payslips don’t specify anything regarding the car as it comes straight from my tax. The car is a PHEV Kia Xceed

What do you mean "comes straight from my tax"? Any deductions, including taxes, should be detailed on your payslip.

If you are a basic rate taxpayer for the 24/25 tax year the BIK tax for that car is £803 PA, if you are a higher rate taxpayer then it is £1,607 PA, do you earn more or less than £50,270?

My payslip doesn’t specify anything for the car and I earn less than that. In a normal month before having the car I’d pay roughly £270 a month in tax and the first month of having the car I’ve paid over £900 and all I keep getting told is that that’s correct

Very odd, on that basis it should be £66.92 pcm deduction. On the basis of that tax (just Income Tax, not counting NI) then you are earning around £29k, have you checked to see if your tax for the year is correct, or if potentially HMRC are correcting an error in tax paid?

I would ask payroll to confirm what they have submitted for BIK and also ask them to break down the tax payable as something has gone wrong and I would suspect it is most likely there. 

This. There may be a chance they haven't entered the correct CO2 emissions figure &/or the electric range of the vehicle.

Rywid12

molerat said:

What are your old and new tax codes including any prefix and suffix letters ?  If a cumulative code has been used then that would backdate the deductions to April so you would see a bigger deduction in the first month, but should not be the amount you have seen - possibly around £250, but much lower than the normal monthly amount going forward.

Old code was 1257L and the new one is 1114L

molerat

Rywid12 said:

molerat said:

What are your old and new tax codes including any prefix and suffix letters ?  If a cumulative code has been used then that would backdate the deductions to April so you would see a bigger deduction in the first month, but should not be the amount you have seen - possibly around £250, but much lower than the normal monthly amount going forward.

Old code was 1257L and the new one is 1114L

So that means they are taxing you on an additional £1430 per year, probably about right for the car over 5 months, which as a basic rate taxpayer should see an additional deduction of £23.80 per month so a worst case additional deduction for December on a cumulative code basis should be £214.

Dazed_and_C0nfused

Rywid12 said:

molerat said:

What are your old and new tax codes including any prefix and suffix letters ?  If a cumulative code has been used then that would backdate the deductions to April so you would see a bigger deduction in the first month, but should not be the amount you have seen - possibly around £250, but much lower than the normal monthly amount going forward.

Old code was 1257L and the new one is 1114L

If the statement above and your previous post below are both true then there is more to this than you are telling us.  And don't forget, if this is something due to a cumulative code being used when a non cumulative one might have been expected then you will see a much reduced tax figure next month (compared to £900).

You have just caught up with the tax you (may have) owed from April.

My payslip doesn’t specify anything for the car and I earn less than that. In a normal month before having the car I’d pay roughly £270 a month in tax and the first month of having the car I’ve paid over £900 and all I keep getting told is that that’s correct

silvercar

Rywid12 said:

MattMattMattUK said:

Rywid12 said:

Penguin_ said:

They don't, or at least shouldn't, back date it to April. They should be using the date you started using the car & calculating the Benefit In Kind tax from that date. 

I’ve spoken with three people now at the HMRC who have all said that’s correct though so I’m not really sure what I do from here though?

What does it say on your pay slips regarding the amount deducted for this? What is the car?

My payslips don’t specify anything regarding the car as it comes straight from my tax. The car is a PHEV Kia Xceed

Electric range is only about 30 miles, you will be taxed heavily on that.

Penguin_

silvercar said:

Rywid12 said:

MattMattMattUK said:

Rywid12 said:

Penguin_ said:

They don't, or at least shouldn't, back date it to April. They should be using the date you started using the car & calculating the Benefit In Kind tax from that date. 

I’ve spoken with three people now at the HMRC who have all said that’s correct though so I’m not really sure what I do from here though?

What does it say on your pay slips regarding the amount deducted for this? What is the car?

My payslips don’t specify anything regarding the car as it comes straight from my tax. The car is a PHEV Kia Xceed

Electric range is only about 30 miles, you will be taxed heavily on that.

12% minimum.

sheramber

Can you  give details of your current and previous month’s payslips?


month number
tax code ( including any X, month1 )
taxable pay to date 
tax deducted 

for each payslip.