Discussion
Beginning of next month I am starting a new job
Wondering though about how my tax code will alter.
Currently I have a company car, so my tax code is 339L which I understand drops my tax free threshold to take into account the benefit in kind.
In my new job however I will be taking a car allowance instead. I've been on this arrangement before, and expect to recieve the allowance along with my salary, and hence pay tax on it as with any other earnings.
Therefore I expect my tax code to return to the normal allowance. However, will this happen immediately? (Once my new employer advises the tax office) or will I continue on my 339L code and pay extra tax until the end of the tax year (pressumably getting any over payment backnext year). Just using a tax calculator and it looks like it makes about £60/month difference, so would like to know how it should be handled correctly.
Thanks.
Wondering though about how my tax code will alter.
Currently I have a company car, so my tax code is 339L which I understand drops my tax free threshold to take into account the benefit in kind.
In my new job however I will be taking a car allowance instead. I've been on this arrangement before, and expect to recieve the allowance along with my salary, and hence pay tax on it as with any other earnings.
Therefore I expect my tax code to return to the normal allowance. However, will this happen immediately? (Once my new employer advises the tax office) or will I continue on my 339L code and pay extra tax until the end of the tax year (pressumably getting any over payment backnext year). Just using a tax calculator and it looks like it makes about £60/month difference, so would like to know how it should be handled correctly.
Thanks.
In theory, your tax code should reflect the fact that you no longer have a company car with effect from the date you commence your new employment. In reality (as the current outcry about attempt to rectify previous coding errors testifies), HMRC are very bad at acting on changes in a PAYE taxpayer's circumstances and it may take a while before the coding is changed to the new correct level.
The important thing is that it gets done before 5 April 2011 as that will mean that the PAYE tax you have paid in tax year 2010/11 will be paid correctly and in full under the PAYE system in the year 2010/11.
If it is not sorted out before 5 April 2011, then your coding for 2011/12 will need to be amended.
The important thing is that it gets done before 5 April 2011 as that will mean that the PAYE tax you have paid in tax year 2010/11 will be paid correctly and in full under the PAYE system in the year 2010/11.
If it is not sorted out before 5 April 2011, then your coding for 2011/12 will need to be amended.
The new employer does not provide a car so has no obligation to provide a P46 (Car) to HMRC.
Of course, the OLD employer should have provided a P46 (Car) telling HMRC that this particular employee was no longer receiving that particul;ar car benefit.
The problem for the OP is that he doesn't know if the old employer HAS submitted the P46 (Car) or, they have, that HMRC have taken any notice of it.
Of course, the OLD employer should have provided a P46 (Car) telling HMRC that this particular employee was no longer receiving that particul;ar car benefit.
The problem for the OP is that he doesn't know if the old employer HAS submitted the P46 (Car) or, they have, that HMRC have taken any notice of it.
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