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Company car tax - What do you pay when on mat leave?

(4 Posts)
Bex174 Mon 09-Feb-15 00:02:11

Hi All,

I have a company car that I'm allowed to keep through my maternity leave. Just wondering what happens to the amount I pay for this per month once I am on statutory mat pay?

I currently pay £210 per month as I'm over the 40% tax threshold, but I don't get any maternity benefits over the statutory amount.

If I have to carry on paying £210 a month that swallows up a huge chunk of my maternity pay! So just wondering if that does actually continue, or it is adjusted? And if the amount I'll pay does change, will it all be readjusted straight away as soon as your statutory mat pay starts?

Many thanks!

BrieAndChilli Mon 09-Feb-15 00:09:14

The way DH pays for his company car is by having his tax code decreased so instead of eg £10000 tax free he can only earn say £6000 tax free before he starts paying tax
So am guessin you won't be earning enough to pay any tax anyway?

Haribolover Tue 10-Feb-15 06:54:13

Same as you 40% tax and kept car for ML. Just gone back to work recently. Car is done by changing tax code so as income is a lot lower you pay at lot less tax on income and car. I was surprised how little I got taxed on SMP so had more money each month than I thought.

Cavort Tue 10-Feb-15 08:24:43

I was paying about £15/month additional tax on my SMP for my company car, and if you take the full year with the last 3 months unpaid the car will be free for those 3 months. What you pay will depend on what your tax code is but will be much lower than your usual amount. There are online tools where you can work it out.

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