Company Car & tax Credits

ButterflyMamma

My husband has a company car-he needs a car for his job to carry stock etc. He is not on a brilliant wage and earlier on this year I lost my job.We have always been penalised through the tax credits as they include the car as a list price on the P111d form, and in car case, it counts for just under £7K "income" yet the fact of the matter is that the car does not really benefit us at all, we use my little runaround at weekends etc.we are finding in this season that this car is crippling us, also my husband is paying twice the amount of Income Tax because his company did not notify the Inland Revenue of the change in his car earlier enough!! Can anyone think of a solution? we are entitled to a small amount of Tax Credits but they have clawed back an overpayment (again caused by the car!!) and do things are exceptionally tight at the moment.

zagfles

Yes, I think there is a way round this - if you don't use the company car for personal use then ask the employer to prohibit personal use, then there should be no taxable benefit. Note that personal use will include travel to normal place of work, so unless he's home based he won't be able to use the company car to get to work (so he'd probably need to leave it at work).

See this thread, in particular the link posted by Icequeen to the HMRC manual. https://forums.moneysavingexpert.com/discussion/3957445

Icequeen99

zagfles wrote: »

Yes, I think there is a way round this - if you don't use the company car for personal use then ask the employer to prohibit personal use, then there should be no taxable benefit. Note that personal use will include travel to normal place of work, so unless he's home based he won't be able to use the company car to get to work (so he'd probably need to leave it at work).

See this thread, in particular the link posted by Icequeen to the HMRC manual. https://forums.moneysavingexpert.com/discussion/3957445

What Zagfles said.

Also, the P11d amount shouldn't be just the list price. Have a look at this calculator here: http://cccfcalculator.hmrc.gov.uk/CCF0.aspx

IQ