Have Tax Questions? Ask a Tax Expert for Answers ASAP
Hi.You certainly aren't paying tax on the car benefit twice. The figure in the tax code is not the tax, it's the estimated car benefit. The P11D has the final car benefit figure and that is the figure which you should put into your tax return.The tax that has been deducted from your pay (as shown on your P60) is based on the entries in the tax code including the car benefit. If you excluded the car benefit from your tax return, your tax calculation would show a false picture of your tax position as your final tax liability will have been calculated as if you had no company car. The tax that has been deducted from your salary will be deducted at the bottom of the tax calculation. Some of that tax was deducted because there was a car benefit in your tax code.Think of it like this. If you think you should not include the car benefit in your tax return because it was in the tax code, why would you include your salary in your tax return as that has had tax deducted from it based on the tax code? All the tax return is doing is reconciling your final tax position for the tax year based on actual figures.I hope this helps but let me know if you have any further questions.