Company Car tax and K codes
Discussion
Nice IR wropte today and has me on a K code for the comopany car: nice. I pay myself about £5000 a year, so not enough earned topay off the company car tax from last year..a sort of big financial slussy snowball. They won't accept a cash repayment.
Solution: Did I hear that if you earn under £2000 you don't pay company car tax, but does that extend to directors?
Solution: Did I hear that if you earn under £2000 you don't pay company car tax, but does that extend to directors?
No. K just denotes a negative coding (God knows why!!!). All that happens is that the minus figure just gets worse.
Why have a second company car? You will surely be penalised very heavilly for this. Is there no other way that you could have purchased the car outside the business obviating a second, much more penal BIK charge?
Why have a second company car? You will surely be penalised very heavilly for this. Is there no other way that you could have purchased the car outside the business obviating a second, much more penal BIK charge?
Eric Mc said:
No. K just denotes a negative coding (God knows why!!!). All that happens is that the minus figure just gets worse.
Why have a second company car? You will surely be penalised very heavilly for this. Is there no other way that you could have purchased the car outside the business obviating a second, much more penal BIK charge?
I have reduced the bill a bit I hope by making sure I have given the SORN between September and April which my acountant feels will show the vehicle was unavailable for private use. The tax man won't take a payment, and just keeps trying to recover the money throyuh the tax code.
They are psychologically geared to trying to tax BIKs through the Coding system. I don't have a problem with this as BIKs are a fundamental part of the PAYE system.
However, what is really annoying me at the moment is that, for 2006/07 they seem to be on a campaign to try and collect all sorts of unrelated taxes through PAYE. I have had a client sent a 2006/07 Coding Notice showing RENTAL income deducted from his code. This is absolutely propsterous as just because the client had rents in the year to 5 April 2005 (don't forget, the Revenue don't even know the 2005/06 rental situation yet) does not mean that the client will have ANY rental income in the year to 5 April 2007.
However, what is really annoying me at the moment is that, for 2006/07 they seem to be on a campaign to try and collect all sorts of unrelated taxes through PAYE. I have had a client sent a 2006/07 Coding Notice showing RENTAL income deducted from his code. This is absolutely propsterous as just because the client had rents in the year to 5 April 2005 (don't forget, the Revenue don't even know the 2005/06 rental situation yet) does not mean that the client will have ANY rental income in the year to 5 April 2007.
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