Company Car Underpaid Tax

sderrick

Hi All,

Ok First thread and just wondered if you guys could tell me if you think I have a chance to claim.

June 2011 I was given a company car by my work but the tax man was never told. I was a naive 20 year old so just presumed it was all sorted.

August 2012 I get a letter saying I owe something to the tune of £400 and that they were changing my Tax Code to a correct one taking into account my company car benefit....Ok, at this point I am just paying correct tax, not repaying.

I then get another letter this year saying I now owe £600 they are changing my tax code again so I can start paying it off.

Can I claim this? I've been reading all sorts on the HMRC website and this bit particular sparks my interest

" Employers don't have to tell HMRC about any company benefits you get until the end of the tax year, unless it's a company car. "

Surely my company should have told them?

princessdon

You are responsible for your own tax code really, they send you a breakdown every year. You can try getting your company to pay and they may pay out of goodwill, but this is down to you and your company not HMRC who will want payment.

We had a 12.5K overpayment due to a company mistake, they weren't very helpful but did allow us to repay over 3 years.

sderrick

Thanks for the reply.

I just got off the phone to HMRC and my company are Legally allowed to wait until mid June to send off the form stating I have a company car. The reason I got stung is because I received the car in June 2011, my company didn't tell the tax man until 2012...which left me with paying it back.

princessdon

sderrick wrote: »

Thanks for the reply.

I just got off the phone to HMRC and my company are Legally allowed to wait until mid June to send off the form stating I have a company car. The reason I got stung is because I received the car in June 2011, my company didn't tell the tax man until 2012...which left me with paying it back.

You could still try to get some payment plan with your company, always worth an ask if things are tight.

MEM62

"June 2011 I was given a company car by my work but the tax man was never told. I was a naive 20 year old so just presumed it was all sorted."

For future reference and to save future problems you can always tell HMRC yourself. If your car changes or your circumstances change and you no longer have one, just phone HMRC and give them details of your new circumstances.