Car and Fuel Benefit - Employee Hasn't Been Taxed Until Now?

startingtosave

Hello All,

I'm temporarily doing the job of our office manager who is on long term leave due to illness and am having a bit of confusion here regarding a tax code for one of our employees and wondering if anyone can help.

The employee in question took delivery of a company car on 1st October 2009 and gets all his private fuel paid for. This situation is ongoing and unlikely to change in the near future.

The benefits were declared to HMRC on his p11d in April 2010 but until now there has been no change in his tax code.

According to the new code which arrived this morning, he will pay an additional £85 tax each month starting on the 30th January to cover the car and fuel benefit. However as this is only starting now does it mean that in effect that he will always be 15 months behind or is it likely that he will receive a demand from HMRC for the backdated tax?

Your advice would be appreciated, this is not my area of expertise and I just want to make sure that I know what's happening.

Many Thanks.

startingtosave

Anybody have any ideas? I've been trawling the net but cant seem to find how long it usually takes from when you submit your p11d to when your tax code will usually change.

jennifernil

I would think HMRC will be looking for the back tax, but as it seems to be less than £2000 it can be recovered via his 2011/12 tax code.