Tax code problem

[Goff]

Hi guys, I wonder if someone can help me. I have received a new tax code from HMRC of 267L. I have contacted them to discuss and apparently it is correct.In October 2013 I started a job with employer A which came with a company car. This was the first time I have ever had a job with a company car. This car was a hire car as my actual car wasn't ready for some 6 months later.

 

I left that job in August 2014 for another job with employer B that also comes with a company car.HMRC told me that Employer A did not inform them I had a company car and they were not aware of this until the P11Ds came out therefore I have underpaid £883.91 in tax and have an underpayment restriction of £4969.The lady at HMRC said i should take this up with employer A as they should have informed them in plenty of time.

 

She also said I should have told them too, but I was unaware of how these things work as I have not had a compnay car before, and thought my employer would sort all this out for me.I emailed employer A and asked when they told HMRC i had a car. Their response is they believe they told them immediately I became employed but cannot give me an exact date. I also remember phoning HMRC myself and telling them I had changed jobs, but they asked me for the details of the car, which I did not have as it was a hire car.

 

I know I owe this tax but i feel as if I am being penalised for someone either not telling HMRC about the car, or HMRC not using the information they had until 9 months later. Both seem strange, but is there anythign I can do as i cannot afford for my tax code to be so low.

 

Many thanks

Edited March 12, 2015 by citizenB
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[antone]

Just going to move this to the HMRC forum - should get more replies there.

[Conniff]

Have you worked out what you think your tax code should be ??

[Goff]

Thanks guys. No Conniff, I haven't I don;t know how to to that.

[blondebubbles]

When you first got the company car your employer should have sent HMRC a P46(Car) form. Then tax could start to be collected. Sounds like they didn't so the first time HMRC knew about it was when the P11D was sent in at the end of the year.

 

Although it sounds like your employer has made an error, the tax is your responsibility so they are under no obligation to pay it for you.

[Lapsed Workaholic]

Can anyone recall when a tax form had to be filled in every year? After that was no longer required did it not become the employee's personal responsibility to ask for, complete and submit a form if there was any change in circumstances?

 

Does having a car bought by the employer for the employee's personal use or having a car hired by the employer for the employee's personal use make any difference for tax purposes, or for notifying the appropriate authorities of any 'perks' of the job?

 

I knew that in my job in engineering employers had different pensions and personal insurance packages, some used to provide tools and protective clothing and some did not. On the few occasions where I changed jobs I did submit a tax form. I can't recall the exact details now but I knew enough to get my salary sorted without falling foul of the law and that the Personnel and/or Accounts Departments were at my disposal to help deal with any time consuming laborious technicalities.

 

I'm not sure if repaying tax that one knows is owed can be regarded as a penalty.

 

Might it not be worth considering that if having a company car entails an expense that one can ill afford it would make sense to forsake the company car?

 

Nowadays as a claimant on JSA there is no shortage of reminders that I should be ever so humble and grateful for what some consider to be me having my bread buttered, the very idea of my expecting jam on both sides would not go down very well in some quarters. In fact hardly a week goes by when I am not reminded in no uncertain terms of the dire consequences of failure to keep abreast of my situation and the precariousness of my circumstances.

[Goff]

As i sais i have no knowledge of PAYE and how company car tax works. I did call HMRC to tell them I had changed jobs and that I had a car, as it was a hire car I had no details about it. I didnt know the list price or anything else. I also recall I was assured my employer would submit a car form.

As for filling out other forms, what are they?

I am sorry if i appear a bit thick, but this is not somethign I have ever dealt with before, so I have NO idea what i was supposed to do.

[Conniff]

Does having a car bought by the employer for the employee's personal use or having a car hired by the employer for the employee's personal use make any difference for tax purposes, or for notifying the appropriate authorities of any 'perks' of the job?

 

 

Yes, having a company car for personal use does attract a tax deduction from an employee.

 

 

Golf, do you have past P45's and payslips etc from your past employer ?

[blondebubbles]

As i sais i have no knowledge of PAYE and how company car tax works. I did call HMRC to tell them I had changed jobs and that I had a car, as it was a hire car I had no details about it. I didnt know the list price or anything else. I also recall I was assured my employer would submit a car form.

As for filling out other forms, what are they?

I am sorry if i appear a bit thick, but this is not somethign I have ever dealt with before, so I have NO idea what i was supposed to do.

 

So where you unaware that receiving a company car was a taxable benefit?

[Goff]

So where you unaware that receiving a company car was a taxable benefit?

 

No I wasnt. I had already told HMRC i had a car. My tax code had gone down so I assumed it was all ok.

HMRC asked me for details of the car which i couldn't provide. In hindsight I should have asked my employer to get these for me, but they are a very large company and again I assumed everything would be in order.

I have no issue paying this tax back if i owe it. The issue I have is why, according to HMRC, it took my then employer 9 months to inform them I had a car. I have since been in formed there are deadlines for filing these forms. I do not know if this is correct.

My former employer is saying they told HMRC that I had a car when i started working there. So I am trying to find out just what has gone wrong and where.

[Goff]

Yes, having a company car for personal use does attract a tax deduction from an employee.

 

 

Golf, do you have past P45's and payslips etc from your past employer ?

 

I have a P45, but my wage slips were all done online. I did download these and had them saved, but the hard drive died on the laptop they were on around 3 months ago and I have repalced the laptop, so i do not have access to them anymore

[blondebubbles]

No I wasnt. I had already told HMRC i had a car. My tax code had gone down so I assumed it was all ok.

HMRC asked me for details of the car which i couldn't provide. In hindsight I should have asked my employer to get these for me, but they are a very large company and again I assumed everything would be in order.

I have no issue paying this tax back if i owe it. The issue I have is why, according to HMRC, it took my then employer 9 months to inform them I had a car. I have since been in formed there are deadlines for filing these forms. I do not know if this is correct.

My former employer is saying they told HMRC that I had a car when i started working there. So I am trying to find out just what has gone wrong and where.

 

So didn't you question it when you weren't paying more tax? This is the sort of thing HMRC would ask if you did appeal.

 

If your employer says they completed and sent the P46(Car) form then asking them to prove this.

 

Deadlines are here - https://www.gov.uk/report-a-company-car

 

I don't think it sounds like they did, I think they only completed the P11D which cannot be done until after the tax year ends, hence the 9 month delay.

 

Deadlines here - https://www.gov.uk/employer-reporting-expenses-benefits/deadlines

[Conniff]

I have since been in formed there are deadlines for filing these forms. I do not know if this is correct.

 

 

Yes there are deadlines, but failing to meet those deadlines brings a fine, not 'you don't have to pay' if you don't meet it.