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  • FIRST POST
    • brednall
    • By brednall 14th Jun 17, 9:21 PM
    • 505Posts
    • 2,814Thanks
    brednall
    P11D help please
    • #1
    • 14th Jun 17, 9:21 PM
    P11D help please 14th Jun 17 at 9:21 PM
    Good evening

    Is there anywhere I can get some advice on my husbands P11D please?

    He had a lease car through a deal made with his employer and a lease company (many employees took up the offer) and the payments were taken from his salary.

    His tax code has changed and meant he is paying more tax which was never meant to be the deal.

    On his P11D, there is no entry into the box 'capital contributions made by employee' and the car has been seen as a benefit when that was never the deal. The car has nothing to do with his company at all, only ever used for personal journeys and commuting and in no way connected to his job.

    His payroll dept are no help and neither were HMRC so thought maybe someone on here could offer some independent advice.

    Thanks in advance
    Baby daughter born 27/01/10 - Jessica Evie 8lbs 3ozs

    Baby son born 26/06/11 - Daniel Alan 7lbs 2ozs
Page 1
    • Dazed and confused
    • By Dazed and confused 14th Jun 17, 11:13 PM
    • 1,984 Posts
    • 893 Thanks
    Dazed and confused
    • #2
    • 14th Jun 17, 11:13 PM
    • #2
    • 14th Jun 17, 11:13 PM
    Similar things have cropped up on here before with P11D's and company cars and there are some basics you need to start with.

    HMRC will not be able to assist with the questions you are asking. The P11D is produced by the employer and HMRC simply act on the information they supply.

    Have you received the tax bill for last tax year yet from HMRC (form P800)?

    Where you/hubby need to concentrate is with his employer as only they can explain why the P11D has been produced and, if necessary, send an amended one to hubby and HMRC so HMRC can amend hubbies tax code and any tax bill from last year.

    For anyone else to help on here you would need to get the details of exactly what was agreed and how the lease works.

    Some of the other similar posts on here have involved salary sacrifice and I think the P11D turned out to be correct in those cases.
    • Dazed and confused
    • By Dazed and confused 14th Jun 17, 11:21 PM
    • 1,984 Posts
    • 893 Thanks
    Dazed and confused
    • #3
    • 14th Jun 17, 11:21 PM
    • #3
    • 14th Jun 17, 11:21 PM
    If it is salary sacrifice then the following would be worth a read, in particular the section

    Employees taking part in a salary sacrifice scheme will pay benefit-in-kind tax


    http://www.fleetnews.co.uk/fleet-management/salary-sacrifice/10-things-to-know-salary-sacrifice
    • MichelleUK
    • By MichelleUK 15th Jun 17, 12:00 AM
    • 325 Posts
    • 200 Thanks
    MichelleUK
    • #4
    • 15th Jun 17, 12:00 AM
    • #4
    • 15th Jun 17, 12:00 AM
    It does sound as if this is a salary sacrifice scheme, as 'Dazed and confused' suggested. You say that the payments are taken from his salary, but the real situation is probably that he has given up some salary to have a car instead.

    An example...

    Say the employee has a salary of £25,000. The employee then agrees with the employer that he will take £20,000 salary via the payroll and a company car instead. The £20,000 will be taxed as normal, but the benefit of the car will also be taxed. The amount of the the car benefit is not the cost of the lease, it is based on the value of the car.

    The benefit is calculated by taking the list price of the car, plus any extras and multiplying it by a set percentage. The percentage is based on the cars CO2 emissions.

    The reason that the employer has not put a figure in the 'capital contributions by employee' is because no contribution was made, your husband only had a smaller salary and a company car.
    • toriih
    • By toriih 18th Jul 17, 2:07 PM
    • 2 Posts
    • 0 Thanks
    toriih
    • #5
    • 18th Jul 17, 2:07 PM
    • #5
    • 18th Jul 17, 2:07 PM
    I am going through the exact same thing! I have £315.51 deducted out of my monthly salary as well as having my tax code lowered in order to reflect a 'company car' - although my car is not linked to my job at all, I only use my car for personal use.
    • brednall
    • By brednall 18th Jul 17, 2:13 PM
    • 505 Posts
    • 2,814 Thanks
    brednall
    • #6
    • 18th Jul 17, 2:13 PM
    • #6
    • 18th Jul 17, 2:13 PM
    The car has now been returned so hopefully his tax will level back out over the next couple of months.

    The car was never used for company business and his salary was not reduced in order for him to have the car.

    personally I still don't think that has been treated correctly through his payroll department but we can't get a straight answer from the tax office or his HR team
    Baby daughter born 27/01/10 - Jessica Evie 8lbs 3ozs

    Baby son born 26/06/11 - Daniel Alan 7lbs 2ozs
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