Summary warrant

Purdy2011

I am very happy and very relieved to say that HMRC had made a mistake and had recorded the income as interest earned - needless to say they will be receiving a letter to advise them of the upset they have caused over the Christmas period but mostly I am relieved that we dont have to sell the house and wont be made Bankrupt - but I do have one question if any of you are able to answer it i would be grateful. If my OH was paying extra tax for the period he had his car why doe she have a tax bill of circa£7000 for tax on the benefit - his PAYE tax increased so much if became impossible to keep the car so i dont understand why he has ot pay more tax. Also is there any differance in the car tax charges relating to the age of the car - it seems the tax has been calculated on the list price if the car had been brand new but it was 4 years old when he got it and 5 years old when he got rid of it - it would seem unfair to be taxed the same amount as if the car had been brand new?
thank you to all of you for all your good advice so far. Sprry to be such a newbie and so unaware of the tax system!

jennifernil

Hey! great result! Didn't we all tell you it must be wrong?!

As my OH never took a company car, I know little about the tax aspect, but it seems to be that the age of the car is likely not taken into account.

When someone first gets a company car, HMRC are often not informed for up to a year afterwards, so the person is not paying the correct tax immediately. Usually the correct tax is a year delayed.

You also said there was discussion going on as they had assessed him for fuel benefit too, which he had not received?

I also thought his code number seemed far too high, so there could be an underpayment there.

Did you do as I suggested and work out the correct tax due for each year in question? Factoring in his benefits appropriately, how does what he paid compare to what is really due for each year?

Ask HMRC for a Tax Calc for each year back to 2006 (?) and see if they are using the correct figures.

Are they applying any interest or penalties?