Company car and fuel tax code

joe2417

Hi folks,

I recently handed back my company car and company fuel card. I called the taxman with this info. My expectation was that I would go from a K code :mad: back to a pretty normal positive code :j , however this hasn't happened; my code is still K (albeit a wee bit less than when I had the car).

Can any one explain this? My assumption was based on the fact that I have been paying tax on the car and fuel right up to the point where I handed them back, so I must assume I have been paying the right amount of tax.

Any help advice/information is very much appreciated!!!

Thanks

Joe

ioscorpio

Never assume that the tax office have got it right, always double check it yourself.

http://www.listentotaxman.com/index.php?calc=1&year=2005&age=0&add=0&taxcode=241L&period=1&ingr=21500&Submit=Calculate

ctm_2

You will still have a deduction for car and fuel in your code.

The previous amount was the total benefit for the whole year. What will happen is that it will be apportioned so that the amount left in your code is the actual benefit received up to the point where you gave the car back. You can work this out yourself by dividing the total amount by 365, then multiplying it by the number of days since 6 April that you had access to the car.

If the figure was taken out completely, then you would get the tax you paid on the benefit so far paid back to you, and end up owing it at the end of the tax year. That is because codes work over the full tax year.

nearlyrich

I would double check your code with your tax office, I changed my car for one that was less tax, better emmisions etc, the tax code was changed acordingly before my next pay day.

joe2417

Thanks folks,

I'll pop into my local enquiry centre next week and see what they've got to say.

Joe