HMRC Wrong??

Stirling

Hi,

Found out a few month back that since starting my new job back in July 2006 I have been on tax code BR. I sent off my P60's for the 3 tax years and have just recieved calculations back of £751.89.

Not that it's not a tidy amount though the calc sheet says it was a return for the last tax year where as I sent off for the past 3. I called them though they informed me that all the past years would have been rounded up and sent a one calc sheet and that I must have underpaid tax in previous years. I have my P60's from previous years and I can't see and underpayment in tax!

In my last job I had a company car which I beleive is why I started my current job on the wrong tax code plus the fact I don't think my company precesses my P45 correctly. On my tax calc sheet they sent me, in the Income section, it states my gross annual income and then under is say CAR BENEFIT (NEW) £2567 is this correct? I haven't had a company car since 28th July 2006.

Sorry to rant on though from my calculations I was expecting 3k!

Cheers.

Any

Call them and ask them, whether they still have you as company car driver... Quite often they do, unless your old employer sent off P46car which I doubt they did.
That would explain a lot.

If they do, then tell them you are not driving car since 28th July 06 and ask them to recalculate accordingly..

Any

Second thought now... Did they also sent you new tax coding notice? What tax code did they put you on now? That might show us whether they think you are still a company car driver...

trevormax

The part where they say they "round up" the amounts is correct. What they do is assess the oldest year first, calculate the amount, then carry the overpayment forward to the next year, assess that year, calculate the overpayment, carry it forward etc.

It does sounds like they have had you down as having a company car which could reduce the amount they think they owe you a lot. Contact them, state you did not have a company car and ask them to calculate the amount again.

Stirling

trevormax wrote: »

The part where they say they "round up" the amounts is correct. What they do is assess the oldest year first, calculate the amount, then carry the overpayment forward to the next year, assess that year, calculate the overpayment, carry it forward etc.

It does sounds like they have had you down as having a company car which could reduce the amount they think they owe you a lot. Contact them, state you did not have a company car and ask them to calculate the amount again.

Did this yesterday though the person on the phone was seriously unhelpful and just kept saying "you'll need to check your calculations and send us a letter". Was very frustrating!

Called again today with my payroll dept. and they have taken the car allowence off and will re-calc. They mentioned that I may still have to pay tax on the comp. car for a year after anyway, does this sound right?

Any

Stirling wrote: »

Did this yesterday though the person on the phone was seriously unhelpful and just kept saying "you'll need to check your calculations and send us a letter". Was very frustrating!

Called again today with my payroll dept. and they have taken the car allowence off and will re-calc. They mentioned that I may still have to pay tax on the comp. car for a year after anyway, does this sound right?

Why??
No, that doesn't sound right.
What happens is, that every employer have to send off P11D detailing what benefits you has from the company (eg car) every year.
Once this benefits ceases, your employer stops completing this for you (usually because you leave the company), but by then the car is already in your tax code, therefore on your P45 and so your new company applies this as well.
Because the old employer does not send P46car the Inland Revenue doesn't know that you finished driving car and also supposes, that your new work gives you car as well and so the car is still in your tax code...

BUT, then when your new employer doesn't supply P11D for you because obviously you don't have a company car at that time, Inland Revenue does not pick up this bit of info because it's not that clever and so you are still paying and paying and paying...

I don't know whether there is some law saying that you cannot claim tax paid for car more then 2 yrs back or something... never heard of that.

There is one thing I always advice to all my drivers - If your new company is not going to give you car, or you are changing to car allowance instead - CALL INLAND REVENUE, TELL THEM AND THEY WILL CHANGE YOUR TAX CODE

So this is message for everyone..

Good luck OP

Stirling

Any wrote: »

Why??
No, that doesn't sound right.
What happens is, that every employer have to send off P11D detailing what benefits you has from the company (eg car) every year.
Once this benefits ceases, your employer stops completing this for you (usually because you leave the company), but by then the car is already in your tax code, therefore on your P45 and so your new company applies this as well.
Because the old employer does not send P46car the Inland Revenue doesn't know that you finished driving car and also supposes, that your new work gives you car as well and so the car is still in your tax code...

BUT, then when your new employer doesn't supply P11D for you because obviously you don't have a company car at that time, Inland Revenue does not pick up this bit of info because it's not that clever and so you are still paying and paying and paying...

I don't know whether there is some law saying that you cannot claim tax paid for car more then 2 yrs back or something... never heard of that.

There is one thing I always advice to all my drivers - If your new company is not going to give you car, or you are changing to car allowance instead - CALL INLAND REVENUE, TELL THEM AND THEY WILL CHANGE YOUR TAX CODE

So this is message for everyone..

Good luck OP

Thanks again ANY, stupid thing is when I first contacted them back in May I told them I no longer had a company car from July 2006. They then issued me with a 647L tax code, I also confimed this in my cover letter I sent then with my P60's and I am still having to chase around for the money I'm owed. Nightmare!