employer error = £6k underpaid tax! help

meer53

I would think that as you've had the car for 3 years and you've been given 3 years to pay by HMRC then any appeal wouldn't work. Who did HMRC recommend appealing to ?

The tax still has to be paid, whether it's 3 years or longer. At the end of the day, unless you have proof that you were given the wrong advice, it was still your responsibility to check the figures for yourself.

whitegoods_engineer

OP has stated that they believed the tax to be included. Therefore, the sudden tax bill of £6K must have come as a shock.

The op has never stated that they don't think they should have been taxed on the benefit, simply that they were unaware of the tax implications.

The OP has said that it seemed a good deal, but if made aware of the extra tax, wouldn't have proceeded.

I think the administrator of the scheme, presumably the employer should be responsible. I'm presuming that the OP is on PAYE and the employer, knowing the employee has vehicle benefit must therefore be predominantly responsible for passing tax on to the Govt. PAYE employees are not tax experts. It is for employers to administer PAYE correctly.

noh

whitegoods_engineer wrote: »

OP has stated that they believed the tax to be included. Therefore, the sudden tax bill of £6K must have come as a shock.

The op has never stated that they don't think they should have been taxed on the benefit, simply that they were unaware of the tax implications.

The OP has said that it seemed a good deal, but if made aware of the extra tax, wouldn't have proceeded.

I think the administrator of the scheme, presumably the employer should be responsible. I'm presuming that the OP is on PAYE and the employer, knowing the employee has vehicle benefit must therefore be predominantly responsible for passing tax on to the Govt. PAYE employees are not tax experts. It is for employers to administer PAYE correctly.

As pointed out in a previous post each individual is responsible for their own tax affairs

whitegoods_engineer

noh wrote: »

As pointed out in a previous post each individual is responsible for their own tax affairs

And employers are responsible for passing on tax on the employee's behalf correctly.

patanne

Shouldn't the employer have filled P11Ds for these employees (and given them to the employees). I'm wondering if the employer set up this car lease arrangement out of the goodness of his heart!!

agrinnall

whitegoods_engineer wrote: »

And employers are responsible for passing on tax on the employee's behalf correctly.

Which is what will happen now that the tax code has been amended to collect the tax owed.

patanne

It would be interesting to know if the employer filed fraudulent returns or if they filed correct ones and HMRC ignored them. This may account for the OP being allowed to take 3 years to pay it back.

patanne

Just wondering OP if your husband uses the car for work & gets paid mileage. Check out the mileage rate he's paid and if it is under the HMRC rate then he may be able to claim the tax back (only the tax unfortunately as it is not their fault the employer is a cheapskate) on the difference. The employer must have had a reason for offering this car lease & I'd really like to figure out what it is.

Thrugelmir

blondebubbles wrote: »

They should have and they will now have Class 1A NIC to pay as well as interest and most likely penalties.

Employer is going to pick up a hefty bill. Used to be a fine for each individual P11d.

Thrugelmir

whitegoods_engineer wrote: »

OP has stated that they believed the tax to be included.

Included in what? The liability will also vary depending on the employees earnings.