Tax Code Car Benefit

wagster_2

Hi,

Trying to understand this as not seen it on my tax code notice before.

I have a Less Car Benefit figure that is reducing my personal allowance. Yes I understand that part but what I cannot get clarification on is how that figure is obtained.

My company used to give me a company car cash allowance that was paid into my salary and obviously taxed on the value which I understood. 

I decided to take the option to get a company car so the car allowance stopped being paid into my salary and instead used to pay the lease company, the car i got also required that I pay an additional monthly value for the lease.

When I look in Gov.uk account for details on the company car the only thing mentioning any contributions is under "Your contribution to private use" and only shows the additional monthly payment that I pay on top.

So my question is, should the company car cash allowance that i used to receive also be included in the contribution?

Dazed_and_C0nfused

wagster_2 said:

Hi,

Trying to understand this as not seen it on my tax code notice before.

I have a Less Car Benefit figure that is reducing my personal allowance. Yes I understand that part but what I cannot get clarification on is how that figure is obtained.

My company used to give me a company car cash allowance that was paid into my salary and obviously taxed on the value which I understood. 

I decided to take the option to get a company car so the car allowance stopped being paid into my salary and instead used to pay the lease company, the car i got also required that I pay an additional monthly value for the lease.

When I look in Gov.uk account for details on the company car the only thing mentioning any contributions is under "Your contribution to private use" and only shows the additional monthly payment that I pay on top.

So my question is, should the company car cash allowance that i used to receive also be included in the contribution?

I don't really understand why you think it would.

Have you read the rules on car benefit is calculated?

LITRG

Good afternoon, you can find the company car benefit calculation rules  here: https://www.litrg.org.uk/working/employment/taxable-employment-income/taxable-benefits-kind

sheramber

The car allowance was an extra payment made by your employer in place of a company car.

Your employer no longer gives you that allowance but has given you a company car instead.