[Kevin Tosh]

Hi,

I have an BEV for a company car so the BIK rate should be dropping to 0% following the last budget but does anyone know how to get your tax code changed to account for this? I believe the Finance Bill hasn't yet been through the full process to get Royal Assent but it would be nice to have a reduced monthly tax cost as I'm about to take. a 20% pay cut as a result of this Covid-19 world.

thanks for any insight you can give

Kevin

 

[cah197]

You need to speak to your payroll provider.

Do you do a self assessment or just PAYE?

 

[Kevin Tosh]

Do you do a self assessment or just PAYE?

I'm on PAYE although do have to do a self assessment at the end of the year so I'm sure the taxman will catch up and I'll get the reduction at some point just be nice to have it straight away! I did the webchat with HMRC and they said speak to my work which I did but that team is busy dealing with Furloughed staff, etc. I'll have to follow up again next month.

thanks

 

[cah197]

I'm on PAYE although do have to do a self assessment at the end of the year so I'm sure the taxman will catch up and I'll get the reduction at some point just be nice to have it straight away! I did the webchat with HMRC and they said speak to my work which I did but that team is busy dealing with Furloughed staff, etc. I'll have to follow up again next month.

thanks

Anything you pay monthly towards BIK will get refunded at self-assessment time.

If you can get them to update the payroll then that should sort you.

I don't pay BiK, so I don't know how it's done exactly on payroll, but I think you just pay extra tax on the 'benefit'. I'm assuming this is at 40%, so worth sorting.

 

[Maui]

It should be automatic.

I went into a BEV in March which was 16% for 19-20, and I initially got a 20-21 tax code to reflect the (2 or 3)% BiK which was before the budget confirmed that it was dropping to 0%. I then got a tax code through a few weeks ago where it showed correctly that the car BiK had dropped to £0.

My advice would be to phone the tax office and have them review / rectify it (might be better than web chat - not tried it). Sometimes things can slip through the cracks, but they are generally very helpful - never been able to fault the service they provide. It usually won't be down to your work if they are only submitting P11D's to HMRC, which is only to firm up your previous year's tax payments.

 

[Kevin Tosh]

Thanks - I’ll try calling the Tax office
thanks
kevin

 

[Jon_]

It'd be easier to set yourself up with an online account and you can change your code there:

Check your Income Tax for the current year

Check your Income Tax, Personal Allowance and tax code for the current tax year. Change your tax code if it's wrong.

www.gov.uk