Company Car Tax

in Cutting Tax
4 replies 101 views
JGibbsJGibbs Forumite
3 Posts
First Post
MoneySaving Newbie
Hey Guys,
I’m looking for some clarity on company car benefit. I’ve recently got myself a new job, and it came with a company car. Currently I have a lead in car, but my tax free allowance fell to sub 300! 

I’m curious, the tax office basically said I’m paying tax from the first half the year even when I wasn’t at my current employment or had the benefit. 

Is this right? I feel like I’m paying for something and being stitched up? Will I get a tax rebate when my p11d is submitted next year?

look forward to the information.

Replies

  • moleratmolerat Forumite
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    Is there X or M1 suffix on the code ?
  • JGibbsJGibbs Forumite
    3 Posts
    First Post
    MoneySaving Newbie
    Hello,

    Yea there is currently an LX at the end of my code. I have been here a month, and roughly 3 weeks of August. 
  • Dazed_and_C0nfusedDazed_and_C0nfused Forumite
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    JGibbs said:
    Hey Guys,
    I’m looking for some clarity on company car benefit. I’ve recently got myself a new job, and it came with a company car. Currently I have a lead in car, but my tax free allowance fell to sub 300! 

    I’m curious, the tax office basically said I’m paying tax from the first half the year even when I wasn’t at my current employment or had the benefit. 

    Is this right? I feel like I’m paying for something and being stitched up? Will I get a tax rebate when my p11d is submitted next year?

    look forward to the information.
    Sounds correct but maybe not explained very well.

    If you have a company car for say 6 months and the annual car benefit amount would be £8,000 then your tax code would include car benefit of £4,000 (6 months worth).

    As your tax code will only be revised half way through the year then yes you effectively owe tax for the first 6 months of the year but only on the car benefit of £4,000.  If this didn't happen you would have a huge tax deduction the first time you were paid after your tax code changes.

    This means the tax owed for the 6 months is spread out over the remaining 6 months of the year rather than being paid all in one months pay.

    There won't be any rebate due unless the P11D shows a lower car benefit.  But there is no obvious reason why it would.
  • JGibbsJGibbs Forumite
    3 Posts
    First Post
    MoneySaving Newbie
    Thankyou for the explanation. Yeah when I contacted the tax office they rattled figures to me and just constantly got confused.

    it’s my first company car, so it just rattled me when I’m suddenly getting taxed like £240 on a 1.4 Astra lead in car
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