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  • FIRST POST
    • candooGG
    • By candooGG 7th Jul 17, 7:09 PM
    • 1Posts
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    candooGG
    Fuel Benefit & Car benefit plus Taxes
    • #1
    • 7th Jul 17, 7:09 PM
    Fuel Benefit & Car benefit plus Taxes 7th Jul 17 at 7:09 PM
    My husband used to have a Company Car. Each year, I declared everything off his P60 to tax credits.
    Last year - we were investigated for fraud as we had not declared 'Benefits in Kind' of £11,000. (This is for one year) £5.5K for Fuel Benefit and £5.5K for Car Benefit which the tax credits office informed us of. I had never seen these figures before this time.

    We are now slowly paying back tax credits and therefore our payment is decreasing and will soon be minimal.non-existent.

    My query is:
    As my husband paid against a tax code that already took into account that he had a company car - how is the figure for the car benefit and fuel benefit so high?

    Doesn't the altered tax code already penalise us for having a company car (to the tune of 30% tax).

    Are we being 'double charged' for something or is it right that you have to pay both ways?

    Quite confused.
Page 1
    • Icequeen99
    • By Icequeen99 7th Jul 17, 7:45 PM
    • 3,417 Posts
    • 2,321 Thanks
    Icequeen99
    • #2
    • 7th Jul 17, 7:45 PM
    • #2
    • 7th Jul 17, 7:45 PM
    yes, you were paying tax due on the benefits in kind through the altered tax code but tax credits are completely separate.

    Tax credits are based on household income - benefits in kind are included as part of your salary package and so are included as income.

    I'm not sure where you think there has been double counting? It is the same as normal salary - you pay tax on it through PAYE but it still counts as income for tax credits.

    You say you hadn't seen the figures before - but the employer has to issue a P11D. Has your husband never had that?

    IQ
    • zagfles
    • By zagfles 7th Jul 17, 10:34 PM
    • 12,243 Posts
    • 10,172 Thanks
    zagfles
    • #3
    • 7th Jul 17, 10:34 PM
    • #3
    • 7th Jul 17, 10:34 PM
    Sometimes benefits are "payrolled" ie the P60 includes the taxable BIKs and no P11D is issued. But then the tax code wouldn't be adjusted, so doesn't look like that applies here.

    If he got a P11D then the renewal form/notes tell you what sections of it to declare - company car benefits you need to declare.
    • Icequeen99
    • By Icequeen99 7th Jul 17, 10:37 PM
    • 3,417 Posts
    • 2,321 Thanks
    Icequeen99
    • #4
    • 7th Jul 17, 10:37 PM
    • #4
    • 7th Jul 17, 10:37 PM
    Sometimes benefits are "payrolled" ie the P60 includes the taxable BIKs and no P11D is issued. But then the tax code wouldn't be adjusted, so doesn't look like that applies here.

    If he got a P11D then the renewal form/notes tell you what sections of it to declare - company car benefits you need to declare.
    Originally posted by zagfles
    yes, i assumed payrolled benefits weren't in play here - although employers still have to give information to employees https://www.gov.uk/guidance/payrolling-tax-employees-benefits-and-expenses-through-your-payroll

    IQ
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