Can somebody tell me how company car tax is collected. I assume it is PAYE and the taxable benefit of £7853 for the car & fuel is deducted from my tax code. So 489L - 785 = -296 to give a tax code of 296K.
Could somebody confirm this is correct.
Thanks, Andy
Yes - that's right. The K is usually shown as a prefix, rather than a suffix. And HMRC may not have applied the code before the start of the relevant tax year - so can be a big hit when they do issue it.
489L - that was the PA 3 years ago...!
Your response is much appreciated. I have 489L because of a private health care benefit and some underpayment of tax; unless HMRC have messed up my tax code somewhere along the way (whats the chances of that eh???).
Thanks, Andy
It's always worthwhile doing your tax computation at the end of the tax year to see if any under/over payments have been made.
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