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Posted Tue, 12 Dec 2023 13:53:09 GMT by
My employer has moved over to payroll Benefit in kind instead of the p11d. I have a car which is PBIK. The new method adds to salary then takes away therefore paying tax. What I would like to know is that the new method can take salary over £50270, therefore 40% after that. And also pay back child benefit payments. So if my salary is £47k a year PBIK value £6000 = £53k salary. There fore I'm into higher tax brack and have to pay back some child benefit and also paying tax for the car. The old method reduced tax code so I was getting taxed earlier. New method makes me pay more tax and repay child benefit. Can this be clarified to as why the new method does this and can anything be done to inform HMRC ?
Posted Tue, 19 Dec 2023 09:11:46 GMT by HMRC Admin 5 Response
Hi

Whether the car benefit in kind is included as part of your salary or included in your tax code the tax paid will be the same.
If now payrolled you will need to check that the car benefit is no longer in your tax code.
You can contact HMRC at Income Tax: general enquiries

Thank you

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