PAYE11040 - coding: codes: how they are used and calculated: P2 standard notes

There are a number of standard notes that explain how a customer’s tax code is made up. The standard notes are generated automatically based on the allowances and deductions in the customer's code. The table below gives a list of coding descriptors and the explanatory note. All the notes will be numbered consecutively on the notice of coding, if personal allowances are present these will be note 1.

If married couple’s allowance is present in the code this will be note 2. The HPAR restriction is not shown on the notice of coding, the note explains what the married couple’s allowance is worth in terms of tax and how the figure included in their code will give them their entitlement. COP screen CD will remain the same; married couples allowance and HPAR will both be shown but the P2 will only show the married couple’s allowance net figure (the married couple’s allowance figure minus HPAR).

Subsequent note numbers will vary depending on the customers’ circumstances. Most pensioners’ personal allowances note will refer to their age and an estimated income figure and point to the final note, which says when a change to this figure will affect their age- related personal allowances.

If a customer is approaching pension age or is a man over 65 or a woman over 60 there are 3 advisory notes that can be added to remind them to check that their employer stops or is no longer deducting NIC from their income. For example

  • If the taxpayer is between 60 and 65 at the date of issue and their title is Ms, Mrs or Miss, the appropriate note would read ‘Please check your payment advice to make sure [Employer Name] has not taken off National Insurance contributions’

The final numbered note explains how the tax free amount for codes with positive net allowances is spread over the whole year resulting in X amount a week or month tax free. For K codes the note will show how the ‘tax is due on’ figure is collected at X amount a week or month.

The final note also shows how much will be charged at the different tax bands and when the higher rate band starts.

The table is presented as follows

Allowances
Reliefs and Expenses
Deductions

Allowances

COP IndicatorP2 DescriptionP2 Standard Note
AAHAllowances allocated hereWe know you have another job or pension (you may get a notice of coding for that job, or pension too). We have used some of your allowances to give you a tax free amount at this job or pension.
BPRBlind person's allowanceYou are entitled to Blind Person’s allowance if you are certified as blind and are on your local authority’s register. (The rules are a bit different if you live in Scotland or Northern Ireland).

If you do not earn enough to pay tax and you are married or in a registered civil partnership you can transfer any part of the allowance that you do not need to your spouse or civil partner.

Similarly if your spouse or civil partner is entitled to the allowance and does not need it all, they can transfer the surplus to you.
LRA

[In use up to 5 April 2008, not used from 6 April 2008]
Starting rate adjustmentThe first £[LOWER RATE BAND] of your taxable income, wherever it comes from, is taxable at [LOWER RATE]%.

We do not think you will earn enough at [EMPLOYER NAME] to pay tax on £ [LOWER RATE BAND].

We know you have another job (or pension) where all your pay is taxed at [BASIC RATE]% (you may get a notice of coding to say code "BR" will be used there).

So, to make sure you get the benefit of all the £ [LOWER RATE BAND] at [LOWER RATE]% rate, we add an allowance of £[ALLOWANCE VALUE] to your tax free amount, here.
PAYour personal allowanceThe law allows everyone who lives in the UK to receive some income before tax has to be paid – a 'tax free amount' of income.

That tax free amount starts from a 'personal allowance' that depends on your circumstances.

Our records tell us you are entitled to [PA AMOUNT] for this tax year, the standard personal allowance for people who will be under 65 at 5th April [TAX YEAR END DATE].
PAAYour personal allowanceThe law allows everyone who lives in the UK to receive some income before tax has to be paid – a ''tax free amount'' of income. That tax free amount starts from a 'personal allowance' that depends on your circumstances. We believe you are entitled to £[PA AMOUNT] for this tax year. £[PA AMOUNT] is the personal allowance for people who are between 65 and 74 at 5 April [TAX YEAR END DATE] with an estimated total income of £[ESTINC]. But please read note [FINAL NOTE No] as well which tells you when to contact us if your income is likely to change.
PAEYour personal allowanceThe law allows everyone who lives in the UK to receive some income before tax has to be paid – a “tax free amount” of income.

That tax free amount starts from a “personal allowance” that depends on your circumstances. We believe you are entitled to £ [PA AMOUNT] for this tax year. £[PA AMOUNT] is the personal allowance for people who are over 75 at 5 April [TAX YEAR END DATE] with total income for the year less than £[MIN AGE INCOME LIMIT]. But please read note [FINAL NOTE No] as well which tells you when to contact us if your income is likely to change.
MAAMarried couple's allowanceMarried couple’s allowance is due if either spouse was born before 6 April 1935.

The maximum allowance is worth £(married allowance full rate x 10%) but this can be reduced to £(married allowance min rate x 10%) depending on the level of your income. It’s worth £(married allowance x 10%) to you.

You get the married couple’s allowance of £(married couples allowance x 10%) by having (married couple's allowance - allowance restriction) included in your tax free amount.
MAEMarried couple's allowanceMarried couple’s allowance is due if either spouse was born before 6 April 1935.

The maximum allowance is worth [married allowance full rate x 10%] but this can be reduced to [married allowance min rate x 10%] depending on the level of your total income.

It is worth [MARRIED COUPLES ALLOWANCE x 10%] to you over the year.

You get the married couple’s allowance of £[MARRIED COUPLES ALLOWANCE x 10%] by having [MARRIED COUPLES ALLOWANCE – ALLOWANCE RESTRICTION] included in your tax free amount.
MCCPMarried couple's allowanceMarried Couple’s Allowance is due if either of you were born before 6 April 1935.

The maximum allowance is worth [O75 Married Allowance full rate x 10%] if either of you are over 75 and [U75 Married Allowance full rate x 10%] if you are both under 75.

You can share the minimum part of this allowance with your spouse or civil partner. This allowance can be reduced to [Married Allowance min rate x 10%] depending on the level of your total income, or that of your spouse or civil partner, whichever is the higher.

It is worth [Married Couples ALLOWANCE x 10%] to you over the year.

You get this allowance of £[Married Couples Allowance x 10%] by having [Married Couples Allowance – ALLOWANCE RESTRICTION] included in your tax free amount.
WMAMarried couple's allowanceYou and your husband have agreed you will have the minimum married couple’s allowance. It is worth £[WIFES MARRIED ALLOWANCE x 10%] to you. You get this by having [WIFES MARRIED ALLOWANCE] included in your tax free amount.

Or

You or your husband have chosen to have half the minimum married couple’s allowance each. It is worth £[WIFES MARRIED ALLOWANCE x 10%] to you. You get this by having [WIFES MARRIED ALLOWANCE – ALLOWANCE RESTRICTION] included in your tax free amount.
WAA or WAEMarried couple's allowance from your husbandWe believe your husband does not need all his married couple’s allowance to stop him paying tax – we have provisionally given the balance to you. It is worth £[MARRIED ALLOWANCE x 10%] to you.

You get the married couple’s allowance of £[MARRIED COUPLES ALLOWANCE x 10%] by having [MARRIED COUPLES ALLOWANCE – ALLOWANCE RESTRICTION] included in your tax free amount.
MATMarried couple's allowance transferred to your wifeWe do not expect your total income to be more than £[NET TAX ALLOWANCES – MARRIED ALLOWANCE TRANSFERRED]. So you will not need all of the married couple’s allowance to stop you paying tax at [EMPLOYER NAME].

You have asked us to transfer the rest to your wife and we have arranged for £ [MARRIED ALLOWANCE TRANSFERRED] to be provisionally given to her. Please let us know if our estimate of your earnings is too low.

Reliefs and Expenses

COP IndicatorP2 DescriptionP2 Standard Note
CRConcessional reliefWe have previously agreed that you are entitled to this tax relief. If you think our figure is wrong, or your circumstances have changed, please tell us.
FS or TUS or WODeath, sickness or funeral benefitsWe have included £ [ALLOWANCE VALUE] for half of any trade union subscriptions you pay for death benefits, for part of any premiums on some friendly society policies providing death and sickness benefits, and for any extra widows and orphans payments you may have to make. Please tell us if you think this figure is wrong.
DTRDouble taxation reliefWe have previously agreed that you are entitled to this tax relief. If you think our figure is wrong, or your circumstances have changed, please tell us.
EISEnterprise investment reliefPlease tell us if you think this figure is wrong, or the relief is no longer due.
FREFlat rate job expensesThe Inland Revenue has agreed with the union that £(allowance value) is the amount you are likely to have to pay out doing this job. You don't have to be a member of the union to get this.
EXPJob expensesWe have included £(allowance value) because you have previously claimed that amount against tax. We will carry on including this in your tax free amount unless you tell us it has changed.
PSUBProfessional subscriptionsYou have previously claimed £[ALLOWANCE VALUE] for the subscriptions you pay to your professional body. We have approved this and will carry on putting £[ALLOWANCE VALUE] in your tax free amount unless you tell us it has changed. If it has, any new or additional payments must be made to a professional body the Inland Revenue recognises; we will check.
FPAForeign pension allowanceWe have previously agreed that you are entitled to this tax relief. If you think our figure is wrong, or your circumstances have changed, please tell us.
CHRGift aid paymentsBecause we expect you to pay tax at [HIGHER TAX RATE] % we have included £ [ALLOWANCE VALUE] in your tax free amount – this will give you higher rate tax relief on your Gift Aid payments. (The charity may ask you to give a declaration that you are a UK taxpayer.) If your payments will be higher, or lower, this year please let us know; your code will need changing.
PPRHigher rate tax relief on pensions you're paying intoThe payments you make for a personal pension when you retire are made after basic rate (basic rate band)% tax relief but, because we expect you to pay tax at (higher rate band)% this year, you are entitled to further relief. We have included £(allowance value) in your tax free amount to give you this further tax relief. If you have stopped paying, or the amount has changed, please tell us.
LOANLoan interestWe have included £(loan interest) for the loan interest we expect you to pay this year.

If you will pay off the loan during this year or if you think our figure is wrong please tell us and we will change your code.
LOSSLoss reliefWe have previously agreed that you are entitled to loss relief. If you think our figure is wrong, or your circumstances have changed, please tell us.
MPMaintenance paymentsTax relief for the maintenance you pay is worth £(maintenance allowance x 10%) to you. You get this by having £(maintenance allowance) included in your tax free amount.

This relief will end when your payments stop or, if they’re for a child, when that child reaches 21. If you think our figures are wrong, please tell us.
RARPayments towards a retirement annuityWe have included the £ [ALLOWANCE AMOUNT] you told us you pay each year towards a retirement annuity. If you have stopped paying, or the amount has changed, please tell us.

Deductions

COP IndicatorP2 DescriptionP2 Standard Note
ELR

[In use up to 5 April 2008, not used from 6 April 2008]
Adjustment to 10% rate bandThe way the tax tables that employers use work means [EMPLOYER NAME] and your other employer will both tax you at [LOWER RATE]% on [LOWER RATE BAND].

Without this adjustment you would pay too little tax at [BASIC RATE]% and too much at [LOWER RATE]%, so that at the end of the year you would owe tax.

This should sort it out. Please contact us if you would like us to talk this through with you.
BRRAdjustment to 22% rate bandThe way the tax tables that employers use work means [EMPLOYER NAME] and your other employer will both tax you at [BASIC RATE %]% on £[BASIC RATE BAND].

Without this adjustment you would pay too little tax at [HIGHER RATE %]% and too much at [BASIC RATE%]%, so that at the end of the year you would owe tax.

This should sort it out. Please phone if you would like us to talk this through with you.
PPAAnnuityThis is the amount of pension annuity we expect you to receive in the year to 5 April [TAX YEAR END DATE].

Please contact us if you think our figure is wrong.
BCBalancing chargePlease contact us if you think our figure is wrong.
MAWMarried couple's allowance to your wifeYou or your wife have chosen to have half the minimum married couple’s allowance each so [MARRIED ALLOWANCE TO WIFE] comes off your tax free amount.

Or

You and your wife have agreed that she will have the minimum married couple’s allowance so [MARRIED ALLOWANCE TO WIFE] comes off your tax free amount.
SERVService benefitPlease contact us if you think our figure is wrong.
 There are a number of car benefit notes depending on the circumstances of the customer record.
The car benefit notes are summarised below
 
NCAR

in code

P2 issue for CY
Car benefitWe understand you have now, or previously, had a company car from your employer. You have to pay tax on the benefit of using an employer’s car for your private motoring. By taking into account the
  • car’s cost
  • carbon dioxide (CO2) emissions value
  • fuel type (there are discounts for environmentally friendly cars)
  • number of days the car was available to you
  • payments made for the private use of the car

we have worked out the benefit to be £ [DEDUCTION VALUE]. If you want to check our figure please contact us or go to www.hmrc.gov.uk/cars. If you think we have got it wrong, please tell us. (We work out the benefit differently if your company car was registered before 1 January 1998 – please contact us if you need this information.)

NCAR

in code

CAR DISCOUNT note included in format 2

P2 issue for CY
Car benefitWe understand you have now, or previously, had a company car from your employer. You have to pay tax on the benefit of using an employer’s car for your private motoring. By taking into account the
  • car’s cost
  • carbon dioxide (CO2) emissions value
  • fuel type (there are discounts for environmentally friendly cars)
  • number of days the car was available to you
  • payments made for the private use of the car

we have worked out the benefit, after taking off the environmentally friendly car discount, to be £ [DEDUCTION VALUE]. If you want to check our figure please contact us or go to www.hmrc.gov.uk/cars. If you think we have got it wrong, please tell us.

NCAR

in code

NEW CAR included in format 2

P2 issue for CY
Car benefitWe understand you now have a company car from your employer. You have to pay tax on the benefit of using an employer’s car for your private motoring. By taking into account the
  • car’s cost
  • carbon dioxide (CO2) emissions value
  • fuel type (there are discounts for environmentally friendly cars)
  • number of days the car was available to you
  • payments made for the private use of the car

we have worked out the benefit to be £ [DEDUCTION VALUE]. (This amount will be higher next year because you will have the use of the car for the full year.) This may mean that between 6 April [TAX YEAR START DATE] and the date [EMPLOYER NAME] used the old code for the last time you will have had the benefit of too much tax free amount, and therefore owe some tax. See the Special Note for more information. If you want to check our figure please contact us or go to www.hmrc.gov.uk/cars. If you think we have got it wrong, please tell us.

NCAR

in code

CAR DISCOUNT and

NEW CAR

note included in format 2

P2 issue CY
Car benefitWe understand you now have the use of a company car from your employer. You have to pay tax on the benefit of using that car for your private motoring. By taking into account the
  • car’s cost
  • carbon dioxide (CO2) emissions value
  • fuel type (there are discounts for environmentally friendly cars)
  • number of days the car was available to you
  • payments made for the private use of the car

we have worked out the benefit, after taking off your environmentally friendly car discount, to be £ [DEDUCTION VALUE]. (This amount will be higher next year because you will have the use of the car for the full year.) This may mean that between 6 April [TAX YEAR START DATE] and the date [EMPLOYER NAME] used the old code for the last time you will have had the benefit of too much tax free amount, and therefore owe some tax. See the Special Note for more information. If you want to check our figure please contact us or go to www.hmrc.gov.uk/cars. If you think we have got it wrong, please tell us.

NCAR

in code

P2 issue for CY+1
Car benefitWe understand you have a company car from [EMPLOYER NAME]. You have to pay tax on the benefit of using that car for your private motoring. By taking into account the:
  • car’s cost
  • carbon dioxide (CO2) emissions value
  • fuel type (there are discounts for environmentally friendly cars)
  • number of days the car was available to you
  • payments made for the private use of the car

we have worked out the benefit to be £ [DEDUCTION VALUE]. If you want to check our figure please contact us or go to www.hmrc.gov.uk/cars. If you think we have got it wrong, please tell us. (We work out the benefit differently if your company car was registered before 1 January 1998 – please contact us if you need this information.)

NCAR in code,
Leaver record
P2 issue for CY+1
Car benefitWe understand you had a company car at your previous employment and we have assumed your next employer will also provide one. You have to pay tax on the benefit of using an employer’s car for your private motoring. By taking into account the
  • car’s cost
  • carbon dioxide (CO2) emissions value
  • fuel type (there are discounts for environmentally friendly cars)
  • number of days the car was available to you
  • payments made for the private use of the car

we have worked out the benefit to be £ [DEDUCTION VALUE]. If you want to check our figure please contact us or go to www.hmrc.gov.uk/cars. If you think we have got it wrong, please tell us. (We work out the benefit differently if your company car was registered before 1 January 1998 – please contact us if you need this information.)

NCAR
in code
CAR DISCOUNT note included in format 2
P2 issue for CY+1
Car benefitWe understand you have a company car from [EMPLOYER NAME]. You have to pay tax on the benefit of using that car for your private motoring. By taking into account the
  • car’s cost
  • carbon dioxide (CO2) emissions value
  • fuel type
  • number of days the car was available to you
  • payments made for the private use of the car

we have worked out the benefit, after taking off the environmentally friendly car discount, to be £ [DEDUCTION VALUE]. If you want to check our figure please contact us or go to www.hmrc.gov.uk/cars. If you think we have got it wrong, please tell us.

NCAR
in code
Leaver record
CAR DISCOUNT note included in format 2
P2 issue for CY+1
Car benefitWe understand you had a company car from your previous employer and we have assumed your next employer will also provide one. You have to pay tax on the benefit of using an employer’s car for your private motoring. By taking into account the
  • car’s cost
  • carbon dioxide (CO2) emissions value
  • fuel type
  • number of days the car was available to you
  • payments made for the private use of the car

we have worked out the benefit, after taking off the environmentally friendly car discount, to be £ [DEDUCTION VALUE]. If you want to check our figure please contact us or go to www.hmrc.gov.uk/cars. If you think we have got it wrong, please tell us.

FUEL and NCAR
In code
Fuel benefitWe also understand that you get free fuel for your private motoring in the car. You will have to pay tax on this benefit, too, which is worked out by multiplying [CAR FUEL BENEFIT MULTIPLIER] by the fixed percentage based on its CO( emissions. We have worked out this benefit to be £ [DEDUCTION VALUE]. If you want to check our figure please contact us or go to our web site. If you think we have got it wrong, please tell us.

(We work out the benefit differently if your company car was registered before 1 January 1998 – please contact us if you need this information.)
FUEL but no car benefit in codeFuel benefitWe understand that you get free fuel for your private motoring in the car. You will have to pay tax on this benefit, which is worked out by multiplying [CAR FUEL BENEFIT MULTIPLIER] by the fixed percentage based on its CO( emissions. We have worked out the benefit to be £ [DEDUCTION VALUE]. If you want to check our figure please contact us or go to www.hmrc.gov.uk/cars. If you think we have got it wrong, please tell us.

(We work out the benefit differently if your company car was registered before 1 January 1998 – please contact us if you need this information.)
APGift aid adjustmentWe know you make payments to charity under Gift Aid but our estimate of your income suggests you won’t pay enough tax this year to match the tax the charity will reclaim from us. So we have reduced your tax free amount by £(deduction value) to make up the difference. Please contact us if you would like us to tell you more about this.
COMMCommission£[DEDUCTION VALUE] is an estimate of the amount we think you will earn in commission this year.

That £[DEDUCTION VALUE] is also taxable. So we have set aside £[DEDUCTION VALUE] of your tax free amount, so that your commission can be paid to you without tax being taken off.

Please tell us if you think our figure is wrong.
BIKEmployer benefits*, or **Other employer benefits

*If there is a first benefit present in the customer's tax code.

**If any of the other benefits (CAR, VAN, FUEL, BNLN, MED, PHON or TEP) appear before BIK.
You have to pay tax on the value to you of benefits, or expenses, provided by your employer [EMPLOYER NAME]. If you want to know precisely how we have worked out £[DEDUCTION VALUE], please contact us.
AUBEstimated Jobseeker's allowanceYou have told us you expect to have breaks in your employment this year and that you will be claiming Jobseeker’s allowance. The allowance is taxable so we have included an estimate. If you think our figure is wrong, or you will not be claiming the allowance, please let us know.
FPForces pensionThis is the amount of forces pension we have estimated you will be receiving in the year to 5 April (tax year end date). Please tell us if think our figure is wrong.
INTInterest without tax taken off (gross interest)We know interest is paid to you, without tax being taken off it first. But it is taxable so we have set aside some of your tax free amount to take care of the tax due on it.

The estimated figure we have included may be slightly lower than you would expect. This is because tax on interest is due at a special rate, [SAVINGS TAX RATE]% (if your total income is between £[NET CODING ALLOWANCES + LOWER RATE BAND] and [NET CODING ALLOWANCES + LOWER RATE BAND +BASIC RATE BAND]).

If we did not lower the estimate you would pay too much tax on your interest.

Please contact us if you would like us to tell you more about this.
BNLNLoan from your employerYou have to pay tax on the benefit of paying no interest, or interest at less than the official interest rate, on your loan from [EMPLOYER NAME].

[DEDUCTION VALUE] is the difference between the interest you pay and what you would pay if interest was charged at the official rate.
MEDMedical insuranceYou have to pay tax because [Employer name] pay, or provide, private medical insurance for you.
AAEOther earnings (or pension)We have set £[DEDUCTION VALUE] of your tax free amount against your other earnings or pensions.

We will check at the end of the year that you have paid the right amount of tax.
DEIOther earnings£[DEDUCTION VALUE] is our estimate of your other earnings, apart from your [EMPLOYER NAME] employment or pension. These earnings are taxable but no tax will be taken off during the year.

Instead we have set aside £[DEDUCTION VALUE] of your tax free amount to take care of the tax due.

Please tell us if you think our estimate is wrong.
OEOther earningsWe have set £ [DEDUCTION VALUE] of your tax free amount aside, so that your other earnings can be paid to you without tax being taken off (up to £[DEDUCTION VALUE]).

But if they turn out to be more than £[DEDUCTION VALUE] they will be taxed; we will check at the end of the year.
DUIOther income (not earnings)We have set aside £[DEDUCTION VALUE] of your tax free amount to cover the tax due on our estimate of your other income.

Please tell us if our figure is wrong; you could pay the wrong amount of tax.
OCCPOther pensionThis is the amount we estimate you will receive in the year to 5 April [tax year end date].

Please tell us if you think our figure is wrong.
PTEPart time earnings£ [DEDUCTION VALUE] is an estimate of the amount we think you will earn at your other employment(s) this year. That £ [DEDUCTION VALUE] is also taxable. We have set £ [DEDUCTION VALUE] of your tax free amount aside, so that your other earnings can be paid to you without tax being taken off.
IFP or FLProperty incomeThe income you get from the property, or land, you let is taxable. We have included an estimate of what we think you will receive this year.

We have set £[DEDUCTION VALUE] of your tax free amount aside, to take care of the tax due on it.

Please tell us if you think our figure is wrong.
PSPPublic services pensionThis is the amount of public services pension we estimate you will receive this year.
Please tell us if think our figure is wrong.
UPCReduction to collect unpaid tax £(tax unpaid)You owe £[UPC VALUE] tax from a previous tax year – you may remember us telling you about this before.

By reducing your tax free amount by £ [UPR VALUE] we expect you to pay tax at [LOWER RATE] % (tax rates are explained in note [Final Note No] below) on an extra £ [UPR VALUE] this year, which should collect the amount you owe (£[UPR VALUE] at £[LOWER RATE]% is £[UPC VALUE]).

Note: the P2 note will show the variations of rate for basic rate and higher rate customers; the notes will read £[BASIC RATE] and £[HIGHER RATE] respectively.
HRASavings income taxable at 40%Savings income – that is interest from banks or building societies etc or company dividends - is usually taxed before it is paid to you (tax at [SAVINGS RATE]% on interest and [LOWER RATE]% on dividends).

As you will be paying some of your tax at [HIGHER RATE]%, extra tax will be due on your savings income.

Making this adjustment to your tax free amount collects the extra tax. You can make this payment directly if you prefer; if so, please contact us.
TEPTaxable expenses paymentsThese are for expenses payments made by [employer name](and any previous employer in this tax year) for expenses such as using your own car or telephone on your employer's business.
IBTaxable incapacity benefitWe have included an estimate of the benefit you are likely to receive this year.

If you think our figure is wrong, please tell us.
PHONTelephoneYou are taxable on the value to you of your employer, [employer name ](and any previous employer in this tax year), paying your home telephone expenses.

Please contact us if you want to know precisely how this is worked out.
TIPSTIPS£[DEDUCTION VALUE] is an estimate of the amount we think you will earn in tips this year.
That £[DEDUCTION VALUE] is also taxable. So we have set £[DEDUCTION VALUE] of your tax free amount aside to take care of the tax due on your tips.

Please tell us if you think our figure is wrong.
VANVan benefitYou have to pay tax on the value to you of using your employer’s van privately. We believe
  • The van will be available for the whole year
  • You do not pay anything for your private use of the van
  • Your private use is not limited to journeys to and from work to home

and so the standard charge [DEDUCTION VALUE] applies. Please tell us if you think our figure is wrong, as the charge is reduced if the van is only available for part of the year, or is unavailable for 30 or more consecutive days, or [EMPLOYER NAME] insist you pay something for your private use of the van. If fuel is provided for private use of your company van you may have to pay tax on a standard amount of [VAN FUEL]. Your employer will tell us after the end of the tax year about any benefits you receive. Please contact us if you get free or subsidised fuel for private use of the van from your employer so that we can adjust your code. (You will not have to pay tax, and you do not need to contact us, if you mainly use the van for work and the only journeys you make in it are work journeys and travelling between home and work).

FUEL
(where VAN in code)
Fuel benefitWe understand that you get free fuel for your private motoring in a company van. You will have to pay tax on this benefit, too. Where fuel is provided for motoring in a company van a standard amount of [VAN FUEL] will apply. We have worked out the benefit to be £ [DEDUCTION VALUE]. If you want to check our figure please contact us or go to our web site. If you think we have got it wrong, please tell us.
FUEL
(VAN + NCAR in code)
Fuel benefitWe also understand that you get free fuel for your private motoring. You will have to pay tax on this benefit, too. Fuel for motoring in the car is worked out by multiplying [CAR FUEL BENEFIT MULTIPLIER] by the fixed percentage based on its CO2 emissions. If fuel is provided for motoring in the company van a standard amount of [VAN FUEL] will apply. If fuel is provided for your car and van we will add the amounts together. We have worked out this benefit to be £ [DEDUCTION VALUE]. If you want to check our figure please contact us or go to our web site. If you think we have got it wrong, please tell us.

(We work out the benefit differently if your company car was registered before 1 January 1998 – please contact us if you need this information.)
EWOWidow's and orphan's adjustmentPlease contact us if you think our figure is wrong.
NIB
(See the table of special notes for information about using the special notes EST NIB, NEW NIB and NEW BENEFIT with NIB).
Your state pension/state benefitsWe know you receive the state pension or another taxable state benefit and we have estimated you will receive £ [DEDUCTION VALUE] this year. The pension or state benefit is taxable but the Department for Work and Pensions, who pay it to you, cannot take tax off the payments. So we have used some of your tax free amount to take care of the tax due on your state pension or benefits £ [DEDUCTION VALUE].