How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 5059
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

I wonder if you could assist with a query relating to my

This answer was rated:

I wonder if you could assist with a query relating to my annual Tax return please? I am employed full time on a PAYE basis. I have a company car.My annual earnings have taken me beyond and also close to the limit before a personal allowance is removed.How should my company car be taken into account? Should it be reflected directly in my Tax Code or does an amount relating to the value of the car get added to my annual income? I am concerned that the latter would again push me into the 6 figure bracket losing my personal allowance. Could you advise please?Thank you

Hello, i am one of the experts on Just Answer and pleased to be able to help you with your question.

You mean at over 100K when you loose your personal Allowance (PA) at a quid for every two quid over?

Customer: replied 11 days ago.
My P60 says that I earned £95k in the year. The way my current tax advisor completes the return is to add on a lump sum to my income for the car. This would take me over the £100k and I would be worse off than having earned less in the year - or like last year with a £4k tax bill to pay. Is this the correct way to do it? I always thought that an adjustment was made to the Tax Code for a company car. Thank you

Your company car would be a benefit in and and reported by your employer to HMRC on a P11d at the conclusion of every tax year. This can then be taken into account in your tax coding. Is the car used only for your employer's activities or do you have private use too?

Customer: replied 11 days ago.
I have it for private use too. That is how I thought it should be done. But my current adviser adds a cash lump sum to my annual income to take account of the car. Does that seem odd to you?

It most certainly does, and is utterly incorrect. It is a matter for the P11d reporting a benefit in kind. It is this sort of difficulty why many people buy their own cars and claim motor mileage at 45p per mile (25p over 10000 miles) which is tax free.

bigduckontax and other Tax Specialists are ready to help you
Customer: replied 11 days ago.
Thanks

Delighted to be able to help.

Please be so kind as to rate me before you leave the Just Answer site.

Thank you for your support.