Van Tax and Employer

teacake48

Hi All,
First time posting and need advice on who I appeal to when an employer will not change the P11D (?) regards van benefit when two other people at HMRC and an accountant say they should in my favour.
In my work contract I have been given a works van to drive. I looked at the HMRC web page and found I could save on tax, as the van is used solely for commuting to and from work and business journeys when required (no private use). Wrote to the tax office and they agreed that my tax code should change in my favour which they duly did, however, the finance department at our firm said no it shouldn't change after queriying this with their 'contact' at the local HMRC who gave an e-mail reply quoting sections from the ITEP Act 2003 (Income Tax Earnings and Pension Act). At home I checked up the sections mentioned in his letter with the relevant Act (what I read was an up to date version) and they did not match up with any section of the Act at all. Baffled at the drivel quoted from the works 'contact' at HMRC, I went to an accountant who agreed I should not be paying for the van and he even wrote a letter to the finance office at work stating such. I also re-phoned HMRC on a further two occasions and they again agreed I should not be paying for the van. My problem is this. The finance department at work still refuses to alter the P11D (?) form and quote from an e-mail I was sent today: "This is not only the opinion of (company name) but the HMRC as well. Until our contact at the HMRC tells us differently we can not change the decision for your van benefits".
Advice please on who to appeal too as this is making me so annoyed!!!

jimmo

Are you sure you referred to an up to date version of ITEPA 2003?
The version on legislation.gov.uk is not.
On that site you need to refer to Schedule 14 Finance Act 2004.

http://www.legislation.gov.uk/ukpga/2004/12/schedule/14

　

I would guess that your sticking point is in the "new version of section 155(4) and section 155(5) ITEPA 2003 in which the test is, not so much whether you use it for private use. If private use (other than normal commuting) is not prohibited by your employer, I am afraid you are stuck with the benefit charge.

Nosht

In my work contract I have been given a works van to drive. I looked at the HMRC web page and found I could save on tax, as the van is used solely for commuting to and from work . . .

This is a benefit & subject to tax. :-(

N.

withabix

If you take the van home and use it to travel to and from work, you are liable for the tax element. (A BENEFIT)

If you want to avoid the tax, leave the van at work and use your own car to travel to and from work. (A COST)

pjclar02

withabix wrote: »

If you take the van home and use it to travel to and from work, you are liable for the tax element. (A BENEFIT)

If you want to avoid the tax, leave the van at work and use your own car to travel to and from work. (A COST)

Really? Can you provide any legislative references to back this up?

My understanding is that ordinary commuting in an employer-provided van does not give rise to a benefit in kind.

OP, if you feel strongly that the van should not be treated as a benefit in kind, then you can bring this back within your control. Accept that your employer has declared this as a benefit-in-kind on your P11d, but write a letter to HMRC stating that the costs are incurred wholly, exclusively and necessarily for the purposes of your employment. You can then request an adjustment to your PAYE code equivalent to the amount of the benefit on your P11d to neutralise the charge.

Hope this helps

withabix

Yes, sorry, my error.

In this case, it would appear that the OP's employer have provided him with a van and it is available for private use, as it has been declared on the P11D

It appears that the OP has decided to declare to HMRC that the van isn't used for private use.

The employer appear to be stating otherwise.

What we need to know is what the employee's T&Cs of employment state.