Utter confusion over company car and tax implications

pwally2

Hi all you clever cutting tax people.

Can someone help me out.

I have a company car. 308 Peugot Deisel 1600

List Price £17314
Co2 figure 120

According to HMRC website this calculates the benefit to be £2250.

According to my Coding notice for next year it has been calculated to be £4569 over £2000 in different!!!! making my tax code 158L

Employer pays 15p per mile for business mileage only no private mileage.

Can someone see if this looks right or am I missing something completely.

Thans in anticipation of help!!!

Murdina

The 15p is presumably for petrol? ie the fuel is all paid for by you?

It could be that HMRC think you are getting fuel paid for - ring them up and check as fuel benefit would be close to the difference.

pwally2

Hiya Murdina,

Thats what I thought but on ringing them they seem to be under impression that it is correct.

We have to pay for all our own fuel and then on monthly basis submit a claim for business onl mileage which is paid at th 15p per mile. ( Nightmare rate when fuel going to hit 120p per litre!!!! but thats another thread!!!)

Might have tro ring again and see if I get a different person!!!

00ec25

pwally2 wrote: »

paid at th 15p per mile. ( Nightmare rate when fuel going to hit 120p per litre!!!! but thats another thread!!!)

if you reclaim the difference between the HMRC allowance 40ppm and your 15p then you will get a tax refund of 5 pence per mile (assuming you are 20% tax payer)

so for the sake of arguement if your car does 30 miles/gallon that's costing you 18.6ppm at £1.20/litre - so reclaim your tax and you will be in profit by 1.4ppm

BoGoF

00ec25 wrote: »

if you reclaim the difference between the HMRC allowance 40ppm and your 15p then you will get a tax refund of 5 pence per mile (assuming you are 20% tax payer)

so for the sake of arguement if your car does 30 miles/gallon that's costing you 18.6ppm at £1.20/litre - so reclaim your tax and you will be in profit by 1.4ppm

Incorrect - it is a company car being used not a private vehicle so the 40ppm does not apply.

BoGoF

The figure in your code appears to include fuel benefit as well (if you tick the option of private fuel on the HMRC calculator the combined figure is close to what you have in your code).

You say you do not get paid for private fuel however by paying you 15 pence per mile this is above the maximum advisory rate for a car of your engine size/fuel - the rate currently being 11 pence per mile so it could be argued that your employer is contributing to private use.

amf

BoGoF wrote: »

The figure in your code appears to include fuel benefit as well (if you tick the option of private fuel on the HMRC calculator the combined figure is close to what you have in your code).

You say you do not get paid for private fuel however by paying you 15 pence per mile this is above the maximum advisory rate for a car of your engine size/fuel - the rate currently being 11 pence per mile so it could be argued that your employer is contributing to private use.

Since only business miles are being reimbursed (assuming the business mileage records demonstrate this) there can be no fuel benefit. If reimbursement is at a rate in excess of the advisory rates a (probably small) benefit will arise on the excess.

It may be that your employer has declared the fuel benefit on form P11D. You may wish to check this out before getting back to HMRC.

pwally2

Hiya guys thansk for all the replies I will be checking my P11D and will ring the tax office tomorrow. I thought I had sort this all out and had been issued with an 415L tax code it seems since i changed my vehicle last month and something seems to have happened to change code. I think as you do that it is the fuel benefit.

We are paid 15p per mile for business only miles. We have to fill in a detailed sheet listing every journey we make and account for our personal mileage and these are submitted every month.

Will let you know what happens

amf

pwally2 wrote: »

We are paid 15p per mile for business only miles. We have to fill in a detailed sheet listing every journey we make and account for our personal mileage and these are submitted every month.

These are exactly the type of records HMRC would wish to see in order to negate the fuel benefit.

Good luck:beer:

pwally2

Ok have spoken to Tax office this morning. They insist no fuel benefit is being added into the calculation for my tax code. U have used 3 company car tax benefit calculator tools online one being HMRC own one. They all calulate the benefit to be £2250!!!! If you add in private fuel benefit then the figure comes in near to the £4500 or so the HMRC say is just the car benefit!!!!

Where do I go from here?!?!? Can I make a plea to the tax office to investigate seems so strange that even the HMRC calculator say the £2250 figure. Man at tax office not much help though as I said insisted that fuel benefit wasnt included.

Any suggestions or ideas welcome

Thanks for all the help!