I have a client who left employment on 31 December. He had use of a company car while employed and was subject to the usual Car Benefit charges on his P11D.
As he was leaving the company as a "good leaver", the terms of his compromise agreement included that he would be allowed to continue using the vehicle until he secured a new job. It is looking like he will not now have any new employment in the 2018-2019 tax year.
The question is what P11D value is he going to have for 2018-2019 tax year in respect of the car? Is it based on the 9 months (April to December 2018) he was in employment, or will it be based on the full tax year, (even though he was not in employment Jan-March 2019)? It is important as he is on the cusp of Child Benefit High Earners charge, so will need to consider making some pension contributions before 5 April to minimise Child Benefit clawback.
Any guidance gratefully received
C
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