company car tax while on maternity

[bongosmum]

Please help!!

i am on a negative tax code (i owe tax before i earn).

I am due to go on maternity leave in november but wanted to find out what happens to the tax on my car/fuel card etc when i move onto statutory pay.

my hr dpt have sent me two different answers - (1) that if i don't earn i can't pay (2) i would still pay the full amount unless i return the car.

armed with that i called the inland revenue and the lady there 'thought' i'd have to repay any tax outstanding (ie that i couldn't pay on smp) when i returned to work....

help!!

[LIZS]

I'd say IR is correct. If you still have the benefit during ML then you'll have to pay but could be done via next year's tax code or self assessment.

[bongosmum]

Thanks lizs - the lady that i spoke with at the tax office seemed equally vague though, that's why i was unsure...

[julienetmum]

As you are entitled to all your usual benefits whilst on ordinary maternity leave you will still be taxed on your car so will keep your K code.

If you are taking additional leave then you could very well be asked to return the car and so will not be taxed on it for that length of time. However if my work is anything like yours it will take the tax office an eternity to actually issue the correct code. A colleague changed his car which meant a different level of tax and he was about 6 months behind.