Tax code retrospectively changed from 357T to 1T, only benefit is a Mondeo !!!!!!

Lum

So I got a company car last year, I forget exactly when but it was around April or May. I get private use but have to pay for my own private fuel. The details for the car according to Parkers are:

CO2 Emissions

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139 g/km
Engine Size

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1997 cc
Fuel Type

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Diesel
P11D Value

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£21,681

Car Benefit for 2010/11
Car Benefit Percentage -- 19%
Cash Equivalent Value --- £4,119
Annual Tax at 20%

---

£823.80
Monthly Tax at 20%

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£68.65

I immediately contacted the revenue and they changed my code to 357T to take this into account. I receive no other taxable benefits.

Today I get home and I have a letter informing me that I'm being changed to 1T based on the following:

Your personal allowance - £6475
Car benefit

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£6456
A tax free amount of ---- £19

There are two special notes, both have almost identical text, 6 lines long, one says that as my tax free amount has gone down and therefore I owe them £544.09 but we will check at the end of the year and let you know. The other has identical text but says "but we will check when we look at your tax return". I don't do tax returns and would seriously want to avoid having to do one again.

The car in question is a 2010 59 plate Ford Mondeo Hatchback 2.0 TDCi Econetic 5 door.

Can anyone give me some advice so that I know what I'm talking about when I call them tomorrow.

Gas_Powered_Toothbrush

They've probably taken the figures from a P11D submitted by your employer, that's the most common reason for codes going out with changed car benefit at the moment. Just phone them with the details you have above, and check if that matches what's on their records.

If the details don't match, they'll correct them by phone to match the figures you provide, but your employer's P11D return will take precedence when submitted. So you may want to go and shout at your payroll department as well.

Lum

In work now, and checked my email records that show the list price as £18430, not £21k as stated above, so my liability is even lower.

On hold to the tax man now... 15 minutes and counting. Got a meeting in 10 minutes though

Lum

Well it turns out that my employer put a different vehicle value on the P11D than the one they initially gave to me (real value: 22K, value they gave me in june: 18K)

As a result HMRC decided I had two company Ford Mondeos and set my tax code accordingly.

I swear since taking this job I am living inside a Dilbert strip sometimes.