I'm scared

Barneysmom

kellyshay wrote: »

HMRC will tell you its your responsibility to check your tax code and IT IS. You knew you had a car, you knew you would have to pay more tax because of the car but yet your code was still 400L (I cant see it as i write this response) but it was never questioned by you until its all gone wrong.

It was me that questioned it........
I thought I was paying the right amount of tax.......a normal tax allowance is about 6500.......mine's 4200 that's 2500 less, so I thought it was right.
The tax office and the person who does my wages both got it wrong, people I should trust to get things done properly, so it's left to me to sort it all out now....
I don't want to avoid paying tax, I've worked all my life, this is a nightmare,

Some people just have to criticice don't they?

This site seems to have gone quite negative, people are supposed to help each other when they get into difficulties, not slate people off...

fengirl_2

My piece of advice - it's always better to owe HMRC than for them to owe you. Look at the number of posts on here from frustrated people who are trying for months and months to obtain refunds of mmoney which is rghtfully theirs. They have no control over the situation - they just have to wait in a queue to be dealt with.
HMRC are not going to come along and ask for this tax in one lump sum by tomorrow - they are giving you time to pay tax which was due a year ago without interest. I am not sure your gas or electicity company or your local authority would be as lenient. Look on it as a bonus - if you accept that tax is due, then repaying it like this is really moneysaving.

zygurat789

Barneysmom wrote: »

It was me that questioned it........
I thought I was paying the right amount of tax.......a normal tax allowance is about 6500.......mine's 4200 that's 2500 less, so I thought it was right.
The tax office and the person who does my wages both got it wrong, people I should trust to get things done properly, so it's left to me to sort it all out now....
I don't want to avoid paying tax, I've worked all my life, this is a nightmare,

Some people just have to criticice don't they?

This site seems to have gone quite negative, people are supposed to help each other when they get into difficulties, not slate people off...

I don't think you werre being criticised. That IS the law and the way HMRC WILL react.

The person who does your wages only sees your code number, not the make up. It is possible to have a car and a code number of 420L.

Your employer should complete form P11D each year informing HMRC of your "benefit". If this has been done and HMRC have not reduced your code number then, as said above, you have a bit of bargaining power as to terms for payment of any tax which you owe and it does appear from what has been said above that you will owe some tax.

Positve advice
When you change your car ensure it has the lowest CO2 emissions compatible with your needs and as cheap as possible - no extras
Apool car would give rise to no benefit but you must not drive home in it -NOT ONCE. You could buy an old banger for personal use and pick up the pool car at the office.
Alternatively
How much private use do you make of the company car.
The tax you are paying is your motoring cost. £70 per month doesn't sound too bad to me.

Tarasam

Barneysmom wrote: »

It was me that questioned it........
I thought I was paying the right amount of tax.......a normal tax allowance is about 6500.......mine's 4200 that's 2500 less, so I thought it was right.
The tax office and the person who does my wages both got it wrong, people I should trust to get things done properly, so it's left to me to sort it all out now....
I don't want to avoid paying tax, I've worked all my life, this is a nightmare,

Some people just have to criticice don't they?

This site seems to have gone quite negative, people are supposed to help each other when they get into difficulties, not slate people off...

I wasnt criticising you, i was telling you exactly the stance HMRC will take and as i work in that dept i know.

IWantToBeFree_2

donquine wrote: »

If you get the choice, a van is better than a car. Petrol is better than diesel. Re cars only, the lower the carbon emissions and list price, the better.

If the OP is doing 60,000 business miles a year then no way is a petrol car better than a diesel! Diesel cars may attract an additional 3% BIK car and be slightly more expensive to run but they are far far more economical in the long run.

Re HMRC screwing up, I have had a company car for 3 years and they have only just recently got it right. The first tax year I had the car I paid no BIK at all despite them having a fully upto date P11D and they never came after the money either, so I got off lightly on that one.

Re the pool car, it is becoming harder and harder to argue that pool cars shouldn't be assesed as a BIK so if you did want to go down that road, expect a challenge on your hands!

Barneysmom

Thanks Jimmo, I think the reason I was on 420 might have been they were allowing for the car but not the private fuel could that be it?
I have had my letter and you're completely right, I now owe over £500 so will be trying to get the backlog paid off asap and then deal with next year as it comes, I'd rather have a poor year next year and get it all paid off then I can walk tall again...it really has been very upsetting..

I might just buy a car and charge mileage, it eems the best way round it for me and I can get a little white van..:)

zygurat789

You should not attempt to do 60,000miles pa in you own car, you would almosst certainly end up out of pocket. use your own car to drive to work to pick up the pool car.