Tax Confusion...long.

nicki_2

I'm hoping someone can help me out here as I'm at my wits end with the Inland Revenue! :mad:

Okay, in December 2003 my partner was given a company car but was not told that he should tell the IR (first job, going by what his bosses were saying, not that money savvy etc). The car was only made available to him from 31/12/2003 but the IR don't seem to be taking this into account when it comes to Car benefit. We have a copy of the original P11D (some mistakes and crossing outs were made so the accountant wrote it up on a new form to send off) and using that I've been onto the IR website and did their "Car Benefit" calculator for that tax year and it's come out at being £1211 for the year (due to availablility) but the IR are INSISTING that it's £4571 We've been through a "Tax Refund Company" but still it's coming back incorrect.

My concern is that OH has just received his Tax Calculation for 2003-04 and it's saying that we OWE £776.69.

Now as of 1st September 2004 my OH moved jobs and lost the company car but the IR were NOT told again :mad: FORTUNATELY, we noticed this when OH got his Coding Notice after moving employer. But even upon telling the IR that we no longer had the car there is still mistakes. I have used the information available on previous "Tax Calculation" sheets, and the rules for 2004-05 taxes and I work out that he has over paid by £9.46

I'm at a loss as what to do now. How can I go about trying to sort this out (OH doesn't understand it, I'm the financial one in this house ) ? The Tax Refund Company hasn't helped at ALL! :mad:

Robert_Sterling

Your partner had a car related to his first job.
Your partner changed jobs.
Your partner did not have e=a car related to his new job.
Your partner should have told the Inland Revenue about his change in circumstances otherwise they will not know.
You may be able to recover tax which has been overpaid.

nicki_2

Okay, I think I need to clear a few points up:

• We NOW know that we should have told the IR but OH was told BY THE ACCOUNTANT AT THE FIRST COMPANY that they would inform the IR.
• OH was also told by the same accountant that they would inform the IR that he no longer had the car.

My concern is the UNDERPAYMENT they say we have made, when by my calculations and using THEIR ONLINE CALCULATORS we have made no such underpayment!

Hoddie_2

It is actually the employer's responsibility to notify the tax office on form P46(CAR) when they first provide a company car and when the available vehicle is changed or withdrawn. HMRC will take the information from the employee but shouldn't need to do so if the employer is compliant.

The ideal thing to do here is ask the company in question to provide written confirmation of the car details (model, registration date, first use date, list price, Co2 figure, fuel type, etc) and forward the letter to HMRC for review. If this isn't possible, or they refuse to do so, send a written appeal against the assessment and list as many of the above details as you can. They cannot just ignore the fact that the employer may have made a mistake on the P11D.

ctm_2

Another thing you should do is sever all ties with any tax refund company youa re using. All they do is charge an extortionate amount for what you can do yourself.

Write to HMRC and state that you no longer wish the company to act on your behalf.

Then, as hoddie said get the details of the car, post them here along with exact dates of avaliability, and wether the compnay paid for private fuel use as well, and someone will double check your calculations. Then write to HMRC with the exact details and they will have to sort it out.