Benefit in Kind Tracker Mortgage and P800 tax underpaid

libblebanks

Hi there, was wondering if anyone else is in a similar position...

My basic question is this: I have a preferential rate mortgage from my employer (RBS) and as such am liable for Benefit in Kind tax. I have received a P800 advising I underpaid £2010 of tax in 2009-10. I don't doubt the figures. My problem is this, I was on a base rate tracker and there was a period where we paid no interest for months as the base rate fluctuated, so did my mortgage rate. RBS informed HMRC of real figures via P111D in May 2010. Is it not "reasonable" to expect RBS to have informed the HMRC of any rate change as it occurred as I don't find it acceptable to get hit with a £2k tax bill at this stage in game. Are RBS within their right as an employer to only advise HMRC once per annum via the P111D or do I have recourse to claim that they "did not operate my tax code with reasonable care"?

Clutching at straws perhaps but thought I'd see if anyone had any thoughts.

Much appreciated in advance.

dori2o

There is no responsibility at all on RBS to notify of changes to the interest rate.

The responsibility for paying the correct amount of tax lies with the individual, this includes informing HMRC about changes that affect the amount of tax they should pay, i.e. if their income increases above £100k, or if their benefits change.

libblebanks

Thanks for that. As I suspected but wanted to double check.