Company Car Benefit and Contributions.

nico11

ceeforcat wrote: »

and so I wont treat this as conclusive until I have declared them to HMRC when I receive my new car - I suppose we will know then.

May I ask how you are going to do this as it is the employer who advises HMRC of your benefits in kind, at the time of issue and at the end of the year on form P11D, a copy of which you should receive?

Not strictly correct, my employer does not have to contact HMRC at the time of issue - I will contact HMRC as per HMRCs guidance when BIK change. Its a lesson learn recently being PAYE.... don't rely on your company or HMRC to act on changes in a timely manner, provide correct information or be in any way solely responsible for your tax affairs!

I have paid back thousands owed in tax due to past employers and HMRC not doing their job properly (I have always been PAYE) and at the end of the day, ignorance is not an excuse (HMRCs words). I now phone and let HMRC know about every change in circumstances relating to tax including BIK as soon as they happen.

Don't want anymore nasty surprises!

BoGoF

nico11 wrote: »

Not strictly correct, my employer does not have to contact HMRC at the time of issue - I will contact HMRC as per HMRCs guidance when BIK change. Its a lesson learn recently being PAYE.... don't rely on your company or HMRC to act on changes in a timely manner, provide correct information or be in any way solely responsible for your tax affairs!

I have paid back thousands owed in tax due to past employers and HMRC not doing their job properly (I have always been PAYE) and at the end of the day, ignorance is not an excuse (HMRCs words). I now phone and let HMRC know about every change in circumstances relating to tax including BIK as soon as they happen.

Don't want anymore nasty surprises!

But if you try to convince them you are making a capital contribution when you aren't then you will get a nasty surprise at the end of the tax year when your employer files the P11d with no capital contribution

nico11

BoGoF wrote: »

But if you try to convince them you are making a capital contribution when you aren't then you will get a nasty surprise at the end of the tax year when your employer files the P11d with no capital contribution

Completely agree, that's why I will explain the scenario to HMRC and go from there. If HMRC agree that its a Capital Contribution towards the company car then all is good.

A deduction for the car will be showing on my pay slip and P60 so the evidence will be there that I am contributing and its not like I will be doing something that's not already commonplace within companies I know.

Maybe an explanation will be asked of the company as to why the figure isn't shown on my P60?! I wonder how the deductions will be shown on the P60.

ceeforcat

Originally Posted by nico11

Not strictly correct, my employer does not have to contact HMRC at the time of issue

I am sorry - I have to take issue with that - HMRC employer guidance below.

http://www.businesslink.gov.uk/bdotg/action/layer?r.s=tl&r.l1=1073858808&r.lc=en&r.l3=1082909037&r.l2=1073859191&topicId=1081750345

I do agree however that it is more than a good idea to make sure that HMRC has been informed.

BoGoF

nico11 wrote: »

Completely agree, that's why I will explain the scenario to HMRC and go from there. If HMRC agree that its a Capital Contribution towards the company car then all is good.

A deduction for the car will be showing on my pay slip and P60 so the evidence will be there that I am contributing and its not like I will be doing something that's not already commonplace within companies I know.

Maybe an explanation will be asked of the company as to why the figure isn't shown on my P60?! I wonder how the deductions will be shown on the P60.

I'm afraid you're not listening. If you phone up and give details of your new car and say I'm contributing x amount per month and HMRC adjust your tax code then that does not mean they accept it's a capital contribution. Your information will be accepted at face value. But then at the year end your employer files a P11d with no capital contribution then you end up underpaid.

You seem reluctant to accept that the payment you are making are neither capital are private use - merely a voluntary payment to achieve a better car which is not tax deductible. I think the 2nd link in my post #15 sums up your position.

nico11

ceeforcat wrote: »

Originally Posted by nico11



I am sorry - I have to take issue with that - HMRC employer guidance below.

http://www.businesslink.gov.uk/bdotg/action/layer?r.s=tl&r.l1=1073858808&r.lc=en&r.l3=1082909037&r.l2=1073859191&topicId=1081750345

I do agree however that it is more than a good idea to make sure that HMRC has been informed.

Hi, I was under the impression that since 2009 the employer did not have to immediately notify HMRC if it is a replacement car and that notification is only made at the end of the tax year?

'Previously, you were also required to complete a form P46 (Car) if you replaced one car with another. As of 6 April 2009, this is no longer a requirement. However, from April 2011 you may submit replacement car information, but this must be submitted online.'

Also, called HMRC this morning and was told my employer must put any payments made towards the cost of the car or accessories (monthly or not) on my P11d. They have asked me to write a letter to them including the correspondence and car policy from my company.....watch this space and I'll update when I get a conclusion.

Again, many thanks for all your responses.:xmassmile