Tax Query

[stay_up_skyblues]

I wonder if anyone can help with this. I’ve had my tax code for the year and my company car benefit is not on there/deducted from the tax free amount I can earn. It has been for the last three years and saw around £6000 reduced from the usual tax free amount. Consequently, I am paying half of the income tax I usually do based on my payslip for tomorrow.

Any idea why HMRC might have missed it? They haven’t before. I assume I will have to tell them or face a big bill when they realise their mistake? Or have the rules regarding company car tax changed!??

Any advice appreciated. Cheers

 

[Astute]

All I can say is be honest with them unless you will always have the money to pay for it in the future if they demand it.

It might be that you have changed car and have a lower rated one. But the tax man is the last you want to owe money to.

 

[Badger]

You need to tell them or as you say you will end up with a big bill and they don't give you long to repay it either. It happened to someone I work with.

 

[rob9872]

Set the money aside as they will catch up with you. Presumably your payroll team missed it from your P11D and haven't notified HMRC of your tax benefit, but from experience, they will now mess it up with too little or too much for about the next two years before it's resolved! Should be really simple in today's world, but whilst they wont ultimately rip you off, HMRC must either have antiquated systems or simply be completely incompetent.

 

[Grendel]

I wonder if anyone can help with this. I’ve had my tax code for the year and my company car benefit is not on there/deducted from the tax free amount I can earn. It has been for the last three years and saw around £6000 reduced from the usual tax free amount. Consequently, I am paying half of the income tax I usually do based on my payslip for tomorrow.

Any idea why HMRC might have missed it? They haven’t before. I assume I will have to tell them or face a big bill when they realise their mistake? Or have the rules regarding company car tax changed!??

Any advice appreciated. Cheers

Out of interest where did the original £6,000 come from?

 

[rob9872]

Out of interest where did the original £6,000 come from?

I would assume the value of the BIK value of the car x 20% (even though you pay at 40%) and then on a scale up for emissions.

 

[Grendel]

I would assume the value of the BIK value of the car x 20% (even though you pay at 40%) and then on a scale up for emissions.

It seems a very rounded sum

 

[rob9872]

It seems a very rounded sum

Ah I see what you mean, I assumed he was just using rounded figures and thought you were wondering how it was calculated.

 

[We'll_live_and_die]

Mine was missed off for 12 months after starting the current job. They just take back double each month until it's caught up. Best bet is just to put it aside and allow for it.

 

[stay_up_skyblues]

Thanks all. Been on phone to payroll and HMRC and sorted it. Its due to work opting to payroll all BIK tax from this tax year to avoid delays with HMRC processing the PD11 or something along those lines.

Got charged twice last month with both work and HMRC taxing me and a credit is due tomorrow hence it reading I’m paying 1/2 what I usually do. And yes, the £6000 was a rounded figure. Thanks again.

 

[ccfc92]

@oldskyblue58

 

[Covstu]

I wonder if anyone can help with this. I’ve had my tax code for the year and my company car benefit is not on there/deducted from the tax free amount I can earn. It has been for the last three years and saw around £6000 reduced from the usual tax free amount. Consequently, I am paying half of the income tax I usually do based on my payslip for tomorrow.

Any idea why HMRC might have missed it? They haven’t before. I assume I will have to tell them or face a big bill when they realise their mistake? Or have the rules regarding company car tax changed!??

Any advice appreciated. Cheers

I had the same issue and my current company was brought out by another and in the switch they didn’t disclose my CC. As a consequence I now owe the Rev about 4.5k! Catch it early as they won’t let it go and you will have to pay the lot in one

 

[Nick]

I had the same issue and my current company was brought out by another and in the switch they didn’t disclose my CC. As a consequence I now owe the Rev about 4.5k! Catch it early as they won’t let it go and you will have to pay the lot in one

That happened to me. I just assumed payroll sorted it all with the company car. Got a letter about 3 years later saying I owe a fair bit.

 

[speedie87]

Can’t believe people still have company cars, you get hammered for tax for a half decent car

 

[Nick]

Can’t believe people still have company cars, you get hammered for tax for a half decent car

I didn't have a choice about the car and at the time had no idea about the tax either.

 

[Sky Blue Pete]

Can’t believe people still have company cars, you get hammered for tax for a half decent car

Um it’s still significantly cheaper than buying for yourself

 

[Covstu]

Can’t believe people still have company cars, you get hammered for tax for a half decent car

I do about 800 miles a week, why would I buy a nice car to run it to the ground when I can do that with a company car?

 

[BodicoteSkyBlue]

Um it’s still significantly cheaper than buying for yourself

Get a van, it’s even cheaper.

 

[Adge]

Can’t believe people still have company cars, you get hammered for tax for a half decent car

And usually there is another add on for personal use isn’t there?