business miles tax query - HMRC double counting?

tom199222

Hi, sorry for yet another business miles thread, but I haven't found an answer to my query on any others.

So, I have a car allowance and work, and use my private car for buiness use. My employer provides me with a fuel card which covers all personal and business miles. Last year my fuel card balance on the P11D was £3616, and I had done just over 11,000 business miles.

On my self assessment, I entered the £3616 fuel benefit, and £4159 of allowable expenses. My calculation worked out that I was due a rebate of £108, which was paid last week.

Today I've received a tax coding notice reducing my tax code by the £3616, so having been 647L, it is now 285L, so I'll be paying more tax to April 2011. I thought that having done the self assessment, I was now square until next year. Are HMRC mistaken in changing my tax code?

Or, are HMRC assuming I'm continuing to use £3616 of fuel per year and wanting to tax me for it as of now? If so, and my business miles stays the same proportionally, then They'll just have to give it all back next year anyway in a bigger rebate.

Am I missing something? I don't think they should be changing my coding.

Any advice VERY MUCH appreciated :beer:

jennifernil

The SA you did was for Tax Year 09/10. Now we are in 10/11, so they are reducing your code to take the tax on the benefit for the current year. They know you are getting a benefit, assuming it will be worth a similar amount, but not assuming you are doing the same business mileage, which is a bit mean.

If you get your return in early, you will get your refund sooner.

However, I would try ringing them and ask why they are not including your likely expenses claim in your code.

tom199222

jennifernil wrote: »

The SA you did was for Tax Year 09/10. Now we are in 10/11, so they are reducing your code to take the tax on the benefit for the current year. They know you are getting a benefit, assuming it will be worth a similar amount, but not assuming you are doing the same business mileage, which is a bit mean.

If you get your return in early, you will get your refund sooner.

However, I would try ringing them and ask why they are not including your likely expenses claim in your code.

Thanks, pretty much confirms what I thought - I'll ring em on Monday and press my case! No need to tell them that chances are my business miles will be much lower for this year though