Company Car with a personal contribution...

Enfieldian

I have been going over my tax returns from 2005/6/7 after having successfully submitted this years online and realised that for 2 years while I was with a previous employer I was paying the full amount of tax based on the values of the cars that that they provided, however I also had £40 a month deducted from my salary for "personal use"

Would this have affected the taxable value of the car(s) or should this have been claimed as an expense for those two years?

Any advice greatly appreciated.

fengirl_2

Only contributions towards the original cost of the car are taken into account in deciding the benefit in kind, for instance if you contributed towards a higher spec car than your employer was willing to fund. The contributions you have been making have been to reimburse your employer for the ruinning of the car.

Enfieldian

Hmm, thanks but this website seems to suggest differently.

http://www.ukqna.com/business/1968-2-buesiness-ukqna.html

Will send a letter to HMRC today and see what they come back with.

amf

Oops....dup

amf

Enfieldian wrote: »

Hmm, thanks but this website seems to suggest differently.

http://www.ukqna.com/business/1968-2-buesiness-ukqna.html

As does HMRC's EIM http://www.hmrc.gov.uk/manuals/eimanual/EIM23530.htm

It may be that the previous employer's P11D Returns may be incorrect.

Enfieldian

Yes, I have spoken to the HMRC today and they said that the amount paid by me should have been deducted from the benefit in kind, as per the link above, which has not been done. No mention of it on the P11Ds.

They have asked me to submit copies of my payslips for the two years and to expect a refund the tax paid on the extra £960.

suso

If one of the years you wish to question was 2005/06 and you completed a return, then you are now out of time, the oldest year you can claim mistake or error relief is 2006/07

Enfieldian

suso wrote: »

If one of the years you wish to question was 2005/06 and you completed a return, then you are now out of time, the oldest year you can claim mistake or error relief is 2006/07

Well, I received a refund for both years today, so..... :whistle: