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Where Taxpayers and Advisers Meet

company car tax

andrewcrane89
Posts: 2
Joined: Mon Sep 21, 2015 9:05 pm

company car tax

Postby andrewcrane89 » Mon Sep 21, 2015 9:19 pm

Hi i wondered if any one could help. I have been offered a company car from my company. I am struggling to find out some information. Last year i went about £1500 into the 40% tax bracket. Does company car tax work the same way, it only taxes you 40% when you go over the thresholed or is it done on the previous year? Thanks

bd6759
Posts: 3347
Joined: Sat Feb 01, 2014 3:26 pm

Re: company car tax

Postby bd6759 » Tue Sep 22, 2015 7:54 am

What you earned last year has nothing to do with the tax you will pay this year.

jpcentral
Posts: 924
Joined: Wed Aug 06, 2008 3:28 pm
Location: Loughborough
Contact:

Re: company car tax

Postby jpcentral » Tue Sep 22, 2015 7:56 am

The calculated benefit in kind is added to your other earnings in the current year to arrive at an overall taxable amount.

If your normal earnings are in excess of the 40% band your company car benefit will be taxed at the higher rate.
John Perry
Central Business Services
Loughborough
http://www.centralbusiness.co.uk

andrewcrane89
Posts: 2
Joined: Mon Sep 21, 2015 9:05 pm

Re: company car tax

Postby andrewcrane89 » Tue Sep 22, 2015 1:28 pm

So would that mean that it will be only on the month/s that i am in the higher tax bracket ill be charged 40% ? Thanks

King_Maker
Posts: 6538
Joined: Wed Aug 06, 2008 3:22 pm

Re: company car tax

Postby King_Maker » Tue Sep 22, 2015 2:00 pm

So would that mean that it will be only on the month/s that i am in the higher tax bracket ill be charged 40% ? Thanks
No - it is by reference to the Tax Year (6 April to 5 April).


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