what happens with company car tax? i'm trying to understand what figure I need to add to my salary, and then how to calculate the tax. Do I have to pay 40% on the portion that takes me over £50k? people have been saying all sorts and I can't get my head around it, what figure do I add to the tax to work out the taxable salary and where do I get it from? is this the benefit in kind figure? thanks in advance!
Great question Rumel. The BIK value of your company car (the bit on your P11D that's classed as "income") gets added to your salary; if you go over into the 40% bracket by even £1 you pay 40% company car tax (not just 40% on that bit that sent you over the 40% threshold). You need to be very careful with this when choosing your car - FYI 100% electric vehicles are tax-free at the moment and very low Company Car tax for the next year or two. Thanks for supporting the channel ;)
@@DefinitelyNotAGuru Ah, I get it now. Thanks. You're one of the first who has explained this clearly without a load of fluff. Keep posting videos, I'm sure they will be very helpful to people! p.s. you need to get #notaguru trending :D
@@rumelahmed8724 haha, thanks pal, You're my number one commenter so far so watching and liking and telling people about #notaguru and it will help I'm sure. Thanks for your support ;)
Thanks Jim. Forewarned is forearmed with the Revenue! I’m reasonably clued in on tax, a lesson I learned after realising how much they’ve pilfered from me down the years! ☹️😳. I clean for a living and a pal of mine took on a clean in someone’s house. She said she would charge £12 an hour for a declareable income, or £10 cash. The customer said cash. After a year or so my pal was chatting to the customer: ‘so, where do you work?’ Answer: ‘HMRC!’ 😉😬
Thanks for sharing your experience. I found your video useful, just that its bit old so tax codes are different but tax basics are explained well & hopefully stll holds good
Help me understand this. If my yearly salary is £60,000, then for the 50,000 i will be paying 20% tax (after £12,500 free). Then for the remaining £10,000, will i be paying 40% tax ??? Or do i have to pay 40% tax for the whole £47,500 (£ 60,000 minus 12500).
Hi Deep, do you mean is PAYE optional? Not if you’re employed, if they ever charge you too much tax they will either refund you by cheque or amend your tax code so you get the refund by paying less tax in future. Hope that was your question. 👍
@@deepchaudhary2532 what is you current tax code? If you have an emergency code a new one will probably help you but you will need to speak to HMRC to get advice about your situation.
what happens with company car tax? i'm trying to understand what figure I need to add to my salary, and then how to calculate the tax. Do I have to pay 40% on the portion that takes me over £50k? people have been saying all sorts and I can't get my head around it, what figure do I add to the tax to work out the taxable salary and where do I get it from? is this the benefit in kind figure? thanks in advance!
Great question Rumel. The BIK value of your company car (the bit on your P11D that's classed as "income") gets added to your salary; if you go over into the 40% bracket by even £1 you pay 40% company car tax (not just 40% on that bit that sent you over the 40% threshold).
You need to be very careful with this when choosing your car - FYI 100% electric vehicles are tax-free at the moment and very low Company Car tax for the next year or two. Thanks for supporting the channel ;)
@@DefinitelyNotAGuru Ah, I get it now. Thanks. You're one of the first who has explained this clearly without a load of fluff. Keep posting videos, I'm sure they will be very helpful to people! p.s. you need to get #notaguru trending :D
@@rumelahmed8724 haha, thanks pal, You're my number one commenter so far so watching and liking and telling people about #notaguru and it will help I'm sure. Thanks for your support ;)
Thanks Jim. Forewarned is forearmed with the Revenue! I’m reasonably clued in on tax, a lesson I learned after realising how much they’ve pilfered from me down the years! ☹️😳. I clean for a living and a pal of mine took on a clean in someone’s house. She said she would charge £12 an hour for a declareable income, or £10 cash. The customer said cash. After a year or so my pal was chatting to the customer: ‘so, where do you work?’ Answer: ‘HMRC!’ 😉😬
H.B's Faithful Servant you couldn’t make it up could you?! 😂 you have to keep on your toes for sure 👍
Thanks for sharing your experience. I found your video useful, just that its bit old so tax codes are different but tax basics are explained well & hopefully stll holds good
👍
Help me understand this. If my yearly salary is £60,000, then for the 50,000 i will be paying 20% tax (after £12,500 free). Then for the remaining £10,000, will i be paying 40% tax ??? Or do i have to pay 40% tax for the whole £47,500 (£ 60,000 minus 12500).
You pay 20% on £37500 of it and 40% on £10k of it
Is P.A.Y.E. Tax optional for stop?? Or is it Refundable?
Hi Deep, do you mean is PAYE optional? Not if you’re employed, if they ever charge you too much tax they will either refund you by cheque or amend your tax code so you get the refund by paying less tax in future. Hope that was your question. 👍
@@DefinitelyNotAGuru is the new tax code beneficial for me? Will new tax code reduce my tax deduction??
@@deepchaudhary2532 what is you current tax code? If you have an emergency code a new one will probably help you but you will need to speak to HMRC to get advice about your situation.
@@DefinitelyNotAGuru current code 1250L
@@deepchaudhary2532 that’s the best code, means you are getting your full personal allowance and can earn £12500 tax free 👍