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  • FIRST POST
    • b1gdeano
    • By b1gdeano 18th Oct 16, 7:52 PM
    • 53Posts
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    b1gdeano
    Tax !!!! up for salary sacrifice lease car
    • #1
    • 18th Oct 16, 7:52 PM
    Tax !!!! up for salary sacrifice lease car 18th Oct 16 at 7:52 PM
    Good Evening

    I am trying to get some advice for my partner - She works for a local authority and took advantage of a salary sacrifice lease car offered via her employer in August

    Since then she has been paying what seems to be double tax on her pay - today she called up HMRC to find out why and they advised her that they can see she is paying too much tax on a salary sacrifice car but as her employer have submitted a P11d they are treating it as a company car for BIK purposes! They say they cannot change it until the employer send in amendments?

    After speaking to her employer payroll they are adamant they have not submitted a P11d and are unable to help!

    It seems we are going in circles with HMRC unable to take her word for it (even though they confirmed they can see all the deductions and that it is wrong) and the employer claiming ignorance on the whole P11d issue and refusing to help on that grounds!

    Anyone ever been in a situation like this? Is there a way of getting HMRC to set aside the tax?

    We are hoping to sort a mortgage in the next couple of months and this is really affecting our affordability! Cant really wait until April when "HMRC will put it right" as advised by her employer payroll!
Page 1
    • molerat
    • By molerat 18th Oct 16, 8:23 PM
    • 15,049 Posts
    • 9,390 Thanks
    molerat
    • #2
    • 18th Oct 16, 8:23 PM
    • #2
    • 18th Oct 16, 8:23 PM
    It is a "company car" for BIK purposes. http://www.fleetnews.co.uk/fleet-management/salary-sacrifice/10-things-to-know-salary-sacrifice
    Last edited by molerat; 18-10-2016 at 8:26 PM.
    www.helpforheroes.org.uk/donations.html
    • b1gdeano
    • By b1gdeano 18th Oct 16, 8:33 PM
    • 53 Posts
    • 2 Thanks
    b1gdeano
    • #3
    • 18th Oct 16, 8:33 PM
    • #3
    • 18th Oct 16, 8:33 PM
    I understand that but the figures are all wrong

    I dont know exactly what they are off the top of my head but when getting quotes from the lease company it was circa £180 a month including Bik

    On her payslips the actual cost is working out about £320ish?

    HMRC have conceded that it is incorrect but will not change it until her employer sends in amendments to them?
    • Dazed and confused
    • By Dazed and confused 18th Oct 16, 9:46 PM
    • 666 Posts
    • 255 Thanks
    Dazed and confused
    • #4
    • 18th Oct 16, 9:46 PM
    • #4
    • 18th Oct 16, 9:46 PM
    Your wife's employer must be extremely efficient.

    A p11d is normally sent into HMRC at the end of the tax year not within the tax year, only 2 months after she got the car

    When a car is provided the tax code is normally moved to an emergency basis so tax owed back to April is not taken all in one go, maybe your wife's code is on a cumulative basis and she has paid everything due and next month the tax will be much less?

    Impossible to say without more detail but worth you sticking some figures into the HMRC pay calculator from the latest payslip and what she expects to get on her next one to check the tax next month?
    Last edited by Dazed and confused; 18-10-2016 at 9:50 PM.
    • Darksparkle
    • By Darksparkle 18th Oct 16, 10:49 PM
    • 3,429 Posts
    • 2,121 Thanks
    Darksparkle
    • #5
    • 18th Oct 16, 10:49 PM
    • #5
    • 18th Oct 16, 10:49 PM
    Your wife's employer must be extremely efficient.

    A p11d is normally sent into HMRC at the end of the tax year not within the tax year, only 2 months after she got the car
    Originally posted by Dazed and confused
    Sounds more like they have submitted a P46 car form.
    • xylophone
    • By xylophone 19th Oct 16, 12:01 AM
    • 19,195 Posts
    • 10,899 Thanks
    xylophone
    • #6
    • 19th Oct 16, 12:01 AM
    • #6
    • 19th Oct 16, 12:01 AM
    Your partner should write to HMRC concerning this matter - she should ask for a letter from her employer stating that a P11D has not been submitted and include this with her letter to HMRC.

    Darksparkle suggests that a P46/Car may have been submitted

    https://www.gov.uk/tell-hmrc-company-car

    if so, it was submitted well in advance of the date specified above.

    http://www.carbuyer.co.uk/tips-and-advice/115642/company-car-tax-explained

    https://cms.wiltshire.gov.uk/documents/s12200/Item%20No%2009%20-%20Introduction%20of%20Salary%20Sacrifice%20Scheme %20to%20Lease%20Cars%20-%20Appendix%20B.pdf

    may be worth a look.
    • dori2o
    • By dori2o 19th Oct 16, 3:16 PM
    • 7,021 Posts
    • 11,792 Thanks
    dori2o
    • #7
    • 19th Oct 16, 3:16 PM
    • #7
    • 19th Oct 16, 3:16 PM
    Does your wife have the car details to hand. If so yopu can check to see if the reduction to her tax code for company car BIK is correct.

    The information needed would be:

    List Price
    CO2 emissions (g/km)
    Fuel Type
    Date received
    Value of any payments made towards use or cost of car (salary sacrifice payments not included)

    Once we have this information, plus knowing what tax code your wife was previously on and what she's on now, it will be possible to advise if what you have been told is correct.

    These lease car schemes seem to be more hassle than they are worth and often (in my experience) end up costing you more than finding your own lease agreement.
    To equate judgement and wisdom with occupation is at best . . . insulting.
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