Income Tax Code Query

[kkatiew]

Hi,

 

I wonder if anyone can help ? I worked my notice with a company and left on 6 November, returning my company car and fuel card. On 16th November, I started with my new company with NO company car or fuel card. In November's pay I was paid from both companies (a part payment from each) and was taxed on 1060l code. In December, the code was still 1060l, then on 6 January I handed my P45 in and my tax code in January was 178T. Now February's payslip has come and I am being taxed on a 469T code ! Bit confused to say the least (and skint!).

 

I called the tax office who said that because I had a company car and fuel card, the payments are spread over 12 months so even if you had the benefit for 1 day, the payments would still be collected over a 12 month financial year.

 

So basically, I will still have to pay for my company car and fuel card up to the end of March even though they went back on 6 November. Does this sound correct ?

 

Thanks in advance.

[honeybee13]

Hello there.

 

I've moved your thread to the HMRC section of the benefits forum. Hopefully people will be along later with advice for you.

 

HB

[kkatiew]

Thank you HB

[slick132]

Hi Katie,

 

You should only be taxed on the car benefit up to the date you returned it. Your tax code should have reflected the benefit of the Co. car based on the CO2 emissions.

 

Approx when did you first have a car from the old employer.

 

Is there any reason why your 2015/16 tax code (1060L) did not include a Benefit restriction for your Co. car.

 

Because you were paid by both employers in November, you may have received double tax allowances in that tax month. Accordingly, your combined pay and tax from both employers will need to be assessed by HMRC after 5th April 2016.

 

If your tax code with the new employer has been reduced to 469T, it should be used by the employer on a "Month 1" or "emergency" basis, or you could end up paying a huge amount of tax when the lower tax code is first used.

 

[kkatiew]

Hi Slick,

 

 

I had a car with my previous employer from about Sep 2013 up to 6 November 2015 which was my last day.

 

My salary has deceased also in my new job by 6k.

 

Thanks

Edited February 23, 2016 by Andyorch
amended year

[slick132]

Hi Katie,

 

You didn't answer my Q above - Is there any reason why your 2015/16 tax code (1060L) did not include a Benefit restriction for your Co. car.

 

What size engine was the car and what was the cost price. These factors affect the tax Benefit in Kind HMRC considered you enjoyed.

 

[kkatiew]

Hi Slick,

 

Sorry for the late reply.

 

I don't there is any reason - such as what ?

 

The car was a 1.4 and a list price of £22k.

 

Thanks

 

Katie

[slick132]

A possible reason for Car Benefit NOT reducing your tax allowances and tax code is if you paid for all personal fuel used, so your employer paid ONLY for business mileage.

 

Was that the case or did your employer pay for all fuel.

 

Was it a diesel or petrol car.

 

[kkatiew]

Hi, No I didn't pay for personal fuel. My employer paid for all fuel.

 

It was diesel.

 

Thanks

 

Katie

[slick132]

Hi Katie,

 

I would expect your tax code to have been lower to tax you for the Car Benefit from 2013 onwards.

 

It may be that you've underpaid tax in 2013/14, 2014/15 and 2015/16, because of this.

 

What tax codes show on your P60's for 2013/14 and 2014/15 ?