benefit in kind

I have recently retired and returned my company car. The HMRC continues to keep the car benefit in kind tax deduction on my records and this added to full state pension (even though I will be taking half that amount) takes my tax liability into a negative amount generating a K code. HMRC insist they have to keep the bik until the end of the tax year even though I am up to date tax wise on the car when handed back. It seems I will be paying tax on a vehicle I no longer have and for part of an income (state pension) I am not receiving. Can someone explain their reasoning please?

Hi DK1966,

The car is required to stay in your code until the year end as it needs to reflect that you had this benefit.
It should be a lower figure that is now showing since you have returned it.
To remove the benefit completely would result in a refund being issued that is not due.

Thank you.