HM Rev & Customs - Income Tax

Silverfox1954

Newly_retired wrote: »

Different topic, but I am wondering why you have not registered as unemployed. You will get your NI contributions credited, even if you are not eligible for any money- or you may be better off by around £65pw

Hi NewlyRetired,

I might be incorrect here but as I am not....'Actively 100% Jobseeking' my conscience is such that I do not feel that I can justifiably register and claim unemployment benefit. Although after six months of supporting myself from savings once the house improvement project is completed then I believe I can justifiably do so, and probably will.

I already have sufficient years NI contributions to receive a full pension in due course, so the only reason to register will be to receive the circa £65.

Thanks for your assistance Newlyretired.

Silverfox.

John_Pierpoint

Silverfox1954 wrote: »

Hi Pam17,

The Benefit in Kind for the use of the Company Vehicle, Mercedes-Benz Vito Sport Dualiner (Commercial Vehicle), is £3000. For some reason, when we had to start paying for Private Mileage Fuel and therefore adjustment of Tax Code needed, they put the Vehicle Benefit at £1000, not £3000. Therefore the Tax Code was incorrect to the tune of 200.

Thanks for your assistance.

Silverfox.

This vehicle appears to have a "crew cab" on the front of a van, and tries to look like a 4 x 4.
[Presumably it is a step down from a "Sprinter" - the latter a large long wheelbase van, famous for having more power than many white van men can handle and notable for running out of road]
You are (were) being charged the van rate for a vehicle with benefit in kind.
As a matter of fact, you were expected to do your weekly shopping in it (and the company accounted for the expenses of your private use) ?

[About half a dozen years ago HMRC clamped down on vans & pick-ups, saying they were not just commercial tools and thus tax free. The bit underlined is the sort of use that defined them as having a private benefit, as against a battered old van used to deliver parcels to the sorting office, where the driver carried on and parked it overnight outside his flat, before retracing his journey the next day. Were you the only "company car driver" at your firm caught by this change in regulations ?]

Silverfox1954

John_Pierpoint wrote: »

This vehicle appears to have a "crew cab" on the front of a van, and tries to look like a 4 x 4.
[Presumably it is a step down from a "Sprinter" - the latter a large long wheelbase van, famous for having more power than many white van men can handle and notable for running out of road]
You are (were) being charged the van rate for a vehicle with benefit in kind.
As a matter of fact, you were expected to do your weekly shopping in it (and the company accounted for the expenses of your private use) ?

[About half a dozen years ago HMRC clamped down on vans & pick-ups, saying they were not just commercial tools and thus tax free. The bit underlined is the sort of use that defined them as having a private benefit, as against a battered old van used to deliver parcels to the sorting office, where the driver carried on and parked it overnight outside his flat, before retracing his journey the next day. Were you the only "company car driver" at your firm caught by this change in regulations ?]

Hi John,

The VITO Sport Dualiner (Five or Six Seater depending on Passenger Front Seat) is a model in it's own right, not a 'Step Down' from a 'Sprinter', 3.0 Litre V6 204HP Turbo Diesel Automatic Short Wheel Base (Compact) was the one that I had. No 4 X 4 is done.

As to wheather I was the only one that was affected by the 'Mistake' I don't know, but a various number of 'Company Van Drivers' were affected by the amendment to Charge for Private Mileage. Ten people at leasty by a 'Quick Tot Up'.

Silverfox.

John_Pierpoint

From what you have said, it looks like you, and the other 10 van drivers, were getting the benefit of private use on the "van", and so £3,000 is the benefit in kind you have received and thus owe tax on it.
In some ways, as it like like the type of "van" you could could use to take the family on holiday, you are lucky to only be charged the van rate on it.

[In a previous life and before HMRC decided that private use of a van was a taxable perk - I was responsible for a team of service engineers. The insurance company was OK with the concept that they could take the van home (ready for an early start tomorrow;))
Private use was a more difficult concept. Obviously picking up wife and shopping from the supermarket on the way home was OK in my book (but not to HMRC it seems). Mysterious increases in the mileometer over the weekend were more of a problem.
But to be realistic, if the couple have fitted a new carpet and need to take the old one down to the tip, are they going to hire a different van to the one standing parked outside the front door?]

chrismac1

There are two things here. Firstly your post suggests you have been sent interesting letters and calculations and not Assessments. I make this point because 2 separate clients got similar letters in June 10 and Aug 10 and I advised them in the first instance to ignore them. Since then they have had no Assessments and not paid a bean, so my first thought is to sit tight and do nothing, they are sufficiently incompetent that they may just forget all about you. Note the tax claimed in these 2 cases (which itself had big errors in in both cases, but so far we've not had to go there) was 1,500 or so in one and nearly 4,000 in another.

Secondly, do you consider you had private use of the vehicle? If not, then once an Assessment is raised - and only then - you can appeal on the basis that the BIK was zero. If you did have private use, when the Assessment arrives it is about how and when you pay the tax, not if you pay it.