Lease car and tax code

[sairlp]

Hi
was wondering if anyone could help us...my husband has had a lease car through NHS for about 12 years ( community nurse)
despite working more weekends and unsociable than ever before, we have noticed that he his bringing home at least £300 pm less over past 2-3 yrs.
his tax code changed to 662L about the same time.
i have spoken to HMRC and they say this is as he has a company car
is anyone aware whether there is a difference in a company car and a lease car, regards Tax?
Sorry we are a bit clueless when it comes to this type of thing:-/
thanks in advance

[CleverClogs]

Re: Lease car and tax code

Who pays for the lease of the motor car?

[sairlp]

Re: Lease car and tax code

Thanks CC
Deductions from salary
lease car ded VAT. £36.06
handling £10
vehicle private use £173.23

[ostell]

Re: Lease car and tax code

As you seem to be paying for private use have you given those figures to HMRC? Do you keep figures for private mileage?

[sairlp]

Re: Lease car and tax code

My husband has to say what personal mileage he anticipates he's going to use per annum, has always been within this
i did try discussing with HMRC, but she said that the same Tax applies as if it was a company car.
He can claim 12p a mile for fuel for business use

[Sapphire]

Re: Lease car and tax code

Tuttsi will be able to help you with this as her hubby is an accountant, she's out this evening so give her a nudge tomorrow.

[sairlp]

Re: Lease car and tax code

Thanks Saffy...not sure how to nudge Tuttsi!

[Eloise01]

Re: Lease car and tax code

I'm sure Tuttsi will be much more help, but if the car is leased by your employer it is treated as a "company car" by HMRC. As a community nurse my guess would be that his business mileage isn't that high - lots of short journeys. HMRC has been hammering company cars for quite a few years now, and low mileage users are the ones worst hit. We used to have a few lease cars for staff who travelled for work in the dim and distant past, but latterly found that it was cheaper for everyone to use private cars and pay proper expenses for them. People were getting so hammered by tax that it no longer worked out for them.

[TUTTSI]

Re: Lease car and tax code

I have been nudged Sarip. I will ask hubby a little later and post up for you hun.

My husband has to say what personal mileage he anticipates he's going to use per annum, has always been within this
i did try discussing with HMRC, but she said that the same Tax applies as if it was a company car.
He can claim 12p a mile for fuel for business use

[TUTTSI]

Re: Lease car and tax code

Hi Sarip

These are the coments made by my husband in relation to your query....

Can'tcomment on the figures provided ie re code number - would need to see thecoding notice
to lookat calculations in arriving at 662L. So far as concerns the Car, he is beingprovided with a
car whichhe uses for work,. Regardless of it being leased or owned by his employer, thisis a
taxablebenefit in his hands. Disclosure of this benefit in kind will need tobe reported by his employer
annualllyon a form P11D and tax is payable on the benefit relating to type of carand related fuel. He
shouldcheck this with his employers payroll department.

If heclaims 12p/mile for business use, no doubt he would have to justify this with amileage record for
hisemployer to reimburse this sum.

Conversely,why can he not use his own car ? This would escape the use of company car andhe would be
able toclaim Approved Mileage Allowance. This way he would be able to claim in his taxreturn a deduction
for thecost of business mileage in his own car. Where an employer pays less than thepublished rates,
employeescan make a claim for tax relief for the shortfall by using Mileage AllowanceRelief. Currently, 45p
per milefor the first 10,000 miles of business travel in the year can be claimed and25p per mile beyond this.
So forexample if he is claiming 5000 miles and his employer reimburses 12p/mile thenhe can claim an
additional33p/mile = £1,650. Using an employees own vehicle IMHO would be muchbetter.

[CleverClogs]

Re: Lease car and tax code

We used to have a few lease cars for staff who travelled for work in the dim and distant past, but latterly found that it was cheaper for everyone to use private cars and pay proper expenses for them. People were getting so hammered by tax that it no longer worked out for them.

Would it be the same if the firm provided bikes?