How does the tax work when you hand a company car back?
Discussion
I'm at a loss here.
My salary has been al over the place since early 2018 when I found out I wasn't paying the tax on my company car. Before anybody points the finger, I know it's my responsibility t sort my tax out but I repeatedly asked my payroll team if it was correct and they assured me it was. Alas it wasn't the case. I paid a chunk back to settle 2016/17 (it was only December-April) and after much toing and froing the figures settled down for 2017/18 and I was paying it back in 2018/19.
Then I left the company and handed my car back, I notified HMRC through the website that I no longer had the car and the 8,350 or whatever the 12 month allowance was was in turn reduced to about 3,479 to account for the period which I had the car. Oh joy, my tax code was back to being an L code down from a K!
Cut to today, my wife was on our online banking and sent me a message to let me know I was getting paid £500 less this month.
oooh, here we go again.
Now, having been there 3 months I've just started paying into my pension so this explains some of it, but the rest is unknown.
I logged into HMRC again, tax code is now K496 M1, my tax free allowance is shot to pieces and in negative figures.
So, the usual bits are there, I didn't pay enough tax in 2017/18, fair enough, that was expected.
I now haven't paid enough in 2018/19 apparently... I'm not sure why, but I imagine the emergency tax code I had in my first month was the problem, though not to that level...
And the best bit - they've add £7,152 into it for my company car that I haven't had since the 10th August!!
Surely by adding the £7,152 into the allowance I'm going to pay too much tax?
How on earth can I have my personal tax allowance reduced by £7,152 when I had it for 5 out of 12 months which works out at about 3,479.
I'm so confused, I've been on the pone to HMRC but other than tell me how great their new dynamic system is all I got was, "well if we remove the car you'll get a refund" which makes no sense as the amount I needed to pay was actually left on there!
It begs the question, if they can't remove the company car why on earth is it an option on their online system? and also, why is the world of tax so bloody difficult?
So, any idea how I can resolve this at least to the point where it makes some sense?
I expect the above makes little sense, so feel free to ask me questions and ridicule me as necessary.
In summary, it's Christmas in a month and I need tyres on the car. balls.
Cheers
My salary has been al over the place since early 2018 when I found out I wasn't paying the tax on my company car. Before anybody points the finger, I know it's my responsibility t sort my tax out but I repeatedly asked my payroll team if it was correct and they assured me it was. Alas it wasn't the case. I paid a chunk back to settle 2016/17 (it was only December-April) and after much toing and froing the figures settled down for 2017/18 and I was paying it back in 2018/19.
Then I left the company and handed my car back, I notified HMRC through the website that I no longer had the car and the 8,350 or whatever the 12 month allowance was was in turn reduced to about 3,479 to account for the period which I had the car. Oh joy, my tax code was back to being an L code down from a K!
Cut to today, my wife was on our online banking and sent me a message to let me know I was getting paid £500 less this month.
oooh, here we go again. Now, having been there 3 months I've just started paying into my pension so this explains some of it, but the rest is unknown.
I logged into HMRC again, tax code is now K496 M1, my tax free allowance is shot to pieces and in negative figures.
So, the usual bits are there, I didn't pay enough tax in 2017/18, fair enough, that was expected.
I now haven't paid enough in 2018/19 apparently... I'm not sure why, but I imagine the emergency tax code I had in my first month was the problem, though not to that level...
And the best bit - they've add £7,152 into it for my company car that I haven't had since the 10th August!!
Surely by adding the £7,152 into the allowance I'm going to pay too much tax?
How on earth can I have my personal tax allowance reduced by £7,152 when I had it for 5 out of 12 months which works out at about 3,479.
I'm so confused, I've been on the pone to HMRC but other than tell me how great their new dynamic system is all I got was, "well if we remove the car you'll get a refund" which makes no sense as the amount I needed to pay was actually left on there!
It begs the question, if they can't remove the company car why on earth is it an option on their online system? and also, why is the world of tax so bloody difficult?
So, any idea how I can resolve this at least to the point where it makes some sense?
I expect the above makes little sense, so feel free to ask me questions and ridicule me as necessary.
In summary, it's Christmas in a month and I need tyres on the car. balls.
Cheers
I share your pain...
many years ago I had left a job with a fuel card, and started a new one without... My P60 came around and I noticed that i was still being taxed for the fuel card. Rang them up expecting some money back... Nope.. They dd not know about my latest car, and I owed them more money... foiled once again!
many years ago I had left a job with a fuel card, and started a new one without... My P60 came around and I noticed that i was still being taxed for the fuel card. Rang them up expecting some money back... Nope.. They dd not know about my latest car, and I owed them more money... foiled once again!
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