Company Car Tax - why am I still being taxed for a car that I no longer have access to?

TaxConcern96

In July 2024, I left my employer of 7 years to start a new role.
My P45 went through as expected and my former employer declared I had no access to the vehicle from my contract termination date.
Since then, my new vehicle has been added to my tax code, taking it to 675L.
However, every month my old company car (which I no longer have access to) continues to appear on my tax code and drop my code to K1237X.
HMRC have told me that even though I no longer have access to the vehicle, I am still liable to pay the proportionate tax over the tax year.
I paid the correct amount of tax on the vehicle from April 24-July 24, so why should I still be paying tax for this vehicle?

Any advice would be greatly appreciated!

many thanks!

kaMelo

Have HMRC done a recalculation and sent you a P800 with a new tax code?

TaxConcern96

kaMelo said:

Have HMRC done a recalculation and sent you a P800 with a new tax code?

I haven't had an official letter or communication from HMRC, just a notification on my online tax account that my tax code has changed with what the tax code means

Hoenir

How does the new vehicle impact your BIK compared to the old one? 

mybestattempt

TaxConcern96 said:

kaMelo said:

Have HMRC done a recalculation and sent you a P800 with a new tax code?

I haven't had an official letter or communication from HMRC, just a notification on my online tax account that my tax code has changed with what the tax code means

The changes clearly took place in the current tax year 2024/25.

Your tax code should include an amount of car benefit for the whole year; the total should be calculated by reference to each car for each related period of employment.

Marcon

TaxConcern96 said:

In July 2024, I left my employer of 7 years to start a new role.
My P45 went through as expected and my former employer declared I had no access to the vehicle from my contract termination date.
Since then, my new vehicle has been added to my tax code, taking it to 675L.
However, every month my old company car (which I no longer have access to) continues to appear on my tax code and drop my code to K1237X.
HMRC have told me that even though I no longer have access to the vehicle, I am still liable to pay the proportionate tax over the tax year.
I paid the correct amount of tax on the vehicle from April 24-July 24, so why should I still be paying tax for this vehicle?

Any advice would be greatly appreciated!

many thanks!

That certainly tallies with views expressed elsewhere by HMRC - see https://community.hmrc.gov.uk/customerforums/pt/5498d6c7-665f-ee11-a81c-0022480003c7

Is the car currently showing at a lower figure than the one showing when you actually had the use of it?

Dazed_and_C0nfused

Yo I definitely do have to pay car benefit for an entire tax year, giving the car back part way through the tax year doesn't ever change that.

But what does change is the car benefit value itself.  

If a full (tax) year benefit was say £3,600 and the car was given back saying 3 months into the tax year then the actual benefit would only be £900, not £3,600.  But the £900 would need to remain in the tax code for the remainder of that tax year.