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Old Employment Car Tax problems

Hi

I need a little help with a few tax issues that have been hanging over me for a few years and I not dealt with.

I don't have full records of what has happened taxwise but I am certain I have been charged too much car tax and also benefits in kind for tax years where I was not even working. I have been told that adjustments can be made up to 6 years in the past is this correct?

Some of the mistakes happened in 2001-2002 tax year, if i send the tax office a letter in the next few days, will it be in time allow them to correct the issues?

I gave up my company car september 10th 2001 but i think i have been taxed for it for the whole year and for the subsequent year. can anyone tell me if car tax payments in 2001-2002 tax year were pro rata based on the number of days you had the car?

Can someone tell my what my tax liability for my company car would have been in the 2001-2002 tax year and confirm how it's worked out. Details as follows:

List price of the car : £13,466
I travelled less than 2499 miles
The car was over 4 years old so I should get a 25% discount
I stopped using the car on 10th September 2001 and handed the keys back to the company.

Thanks

Pete

Comments

  • Murdina
    Murdina Posts: 434 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    The benefit was adjusted for the days the car was unavailable -so that would take out all days after you gave it back. I think your benefit is about £510 (list price x 35% x25% assuming you did less than 2,500 miles on business prorata for the year less days unavailable). Your employer should have filed a form quarterly P46 Car to show who had had changes to their car and given you form a copy of form P11D at end of year which would show you the exact amount of benefit on which tax was due. You are correct that you only have 6 years to claim error or mistake so no harm in writing anyway now before 5 April. Or you could ring and see if they can tell you what benefit you were taxed on for that year in your code vs what was on P11D. In theory HMRC should match and correct the 2 at the end of the year. If your employer gave them duff or no info though then things could well have gone adrift. Good luck.
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