HMRC - Notice of Tax Underpayment

ceeforcat

bfgun wrote: »

Hi ceeforcat.

I do not have fuel included. I pay for all fuel upfront and then claim x pence per mile for every business mile conducted.

Ironically I have actually lost between £20-£30 per tank for business mileage conducted as the amount I can claim totals less than the cost of a full tank!

My P11D details for 2011-2012 were as follows (I had 2 different cars for that tax period)

Car 1 - 6/4/2011 - 31/8/2011 = £2832 cash equivalent

Car 2 - 1/9/2011 - 5/4/2012 = £3619.91 cash equivalent

Bupa - £1250.35

Oh dear - I strongly suspect that HMRC could have calculated car benefit for car one for the WHOLE year PLUS car benefit on car 2 for the WHOLE year - that's gets us up to around 13000. Unless someone else has another explanation?

Get on to HMRC quickly and ask how they equate the P800 with your P11D.

On another point, the P800 will always show 'no tax' against your P11D benefit as the tax has been collected elsewhere, i.e. through your salary (it is not possible to 'collect' tax from a P11D benefit). It does not mean that you have not been credited with that deduction.

bfgun

ceeforcat wrote: »

Oh dear - I strongly suspect that HMRC could have calculated car benefit for car one for the WHOLE year PLUS car benefit on car 2 for the WHOLE year - that's gets us up to around 13000. Unless someone else has another explanation?

Get on to HMRC quickly and ask how they equate the P800 with your P11D.

On another point, the P800 will always show 'no tax' against your P11D benefit as the tax has been collected elsewhere, i.e. through your salary (it is not possible to 'collect' tax from a P11D benefit). It does not mean that you have not been credited with that deduction.

I have a meeting with the Payroll Dept this week and we will contact HMRC together.

The P800 I received show that in tax year 2010-2011 Income - Car Benefit was £6757 but has £0 against Tax Paid.

For 2011-2012 the P800 shows Income - Car Benefit £13497 and has also got £0 against Tax Paid.

Yet all of my P11D's accurately show the cars I have had and the taxable benefit.

If the tax wasn't being taken then surely I would have a much higher tax code akin to someone who has no BIK's?

Appreciate your help.

System

bfgun wrote: »

I have a meeting with the Payroll Dept this week and we will contact HMRC together.

The P800 I received show that in tax year 2010-2011 Income - Car Benefit was £6757 but has £0 against Tax Paid.

For 2011-2012 the P800 shows Income - Car Benefit £13497 and has also got £0 against Tax Paid.

Yet all of my P11D's accurately show the cars I have had and the taxable benefit.

If the tax wasn't being taken then surely I would have a much higher tax code akin to someone who has no BIK's?

Appreciate your help.

It's as ceeforcat says. Tax isn't deducted from the car benefit. Any PAYE tax deducted in respect of the car benefit is included in the P60 figures. On the P800 all of the PAYE tax will be shown with the earnings rather than the benefit.

The best people to speak to at this stage are HMRC. Your employer wouldn't know how your 2010-11 and 2011-12 tax codes were made up. HMRC don't pass that information to your employer. They just tell them what code to use, not how its made up.

Any

ceeforcat wrote: »

Oh dear - I strongly suspect that HMRC could have calculated car benefit for car one for the WHOLE year PLUS car benefit on car 2 for the WHOLE year - that's gets us up to around 13000. Unless someone else has another explanation?

.

I bet thats what it is too.
It has happened to one of our guys when he personally rung to adjust for new car-they had counted 2 cars at the same time.
We noticed on tax coding notice, but obviously it is possible for HMRC to keep 2 cars on the system at the same time without someone questioning it.

bfgun

Many thanks to everyone that has replied.

I spoke with HMRC this morning and after a lengthy conversation it does appear, as suggested by ceeforcat and others, that I have been charged for two vehicles for that tax period.

Hopefully the corrections will be applied once my employer confirms to HMRC the data I have supplied.

Thanks again to all who helped, much appreciated.

somethingcorporate

Great outcome, well done.

I wonder how many people actually have 2 company cars!

bfgun

somethingcorporate wrote: »

Great outcome, well done.

I wonder how many people actually have 2 company cars!

Thanks.

If they do I doubt they would be concerned with a £3K tax underpayment!!

ceeforcat

Waahhaaayyy!

However:

Hopefully the corrections will be applied once my employer confirms to HMRC the data I have supplied.

Your employer has supplied this information. HMRC have this information. HMRC issued a P800 for 2011/12 using (????) this information. The rest we can only surmise.

bfgun

ceeforcat wrote: »

Waahhaaayyy!

However:

Hopefully the corrections will be applied once my employer confirms to HMRC the data I have supplied.

Your employer has supplied this information. HMRC have this information. HMRC issued a P800 for 2011/12 using (????) this information. The rest we can only surmise.

Yes that does appear confusing! HMRC say they received 2 x P11D's, my employer says they only issued 1.

I have written to HMRC to confirm the vehicles I had and the dates they were in my control and my employer is doing the same.

Someone somewhere has made an error and had it not been for the superb advice and info received here I could have paid the price!