Tax Query (1 Viewer)

stay_up_skyblues

Well-Known Member
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

Well-Known Member
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

Well-Known Member
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

Well-Known Member
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

Well-Known Member
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

Well-Known Member
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

Well-Known Member
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

Well-Known Member
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.
 

Rich

Moderator
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

Well-Known Member
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.
 

Covstu

Well-Known Member
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

Administrator
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.
 

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