P11D and Tax

corematrix

I worked for a company for 2 years and never got a P11D this year we got bought out and got one. So i now have a figure of around £2000 as a taxable benefit.

This was from the company car that i just got handed keys and told all was sorted.

As it works out I'M NOT having the tax deducted from my PAYE so, in short i've got £2000 X 3 years to pay.

I'm a high tax earner earning around £45 a year so....how does this work for me.

I guess i'm planing to go to the tax man and pay him ....something. But how much and at what rate?

xylophone

I guess i'm planing to go to the tax man and pay him ....something. But how much and at what rate?

Flight of fancy?:)

I guess the taxman is planning to approach you and demand a back payment......

Presumably your employer has advised HMRC?

Did you receive Notices of Coding for the previous years?

https://www.gov.uk/calculate-tax-on-company-cars

https://www.gov.uk/tax-company-benefits/tax-on-company-cars

All that said http://www.dailymail.co.uk/news/article-1309524/The-great-tax-revolt-Experts-tell-thousands-pay-unpaid-tax-HMRC-blunder.html

http://www.justanswer.com/uk-tax/5tnnp-just-informed-unpaid-tax-company.html#re.v/175/

may be of interest.....

corematrix

Actually I was informed by my employer that they had paid it for me. They called it "Made good" which is a term used on the P11D. So i was of the understanding it was sorted.

MDMD

corematrix wrote: »

Actually I was informed by my employer that they had paid it for me. They called it "Made good" which is a term used on the P11D. So i was of the understanding it was sorted.

'Made good' is usually when you (the employee) pay the company back for the cost of the benefit (it's usually the middle box on each row). This reduces the cash equivalent and the tax due.

Unfortunately when your employer pays the tax due on the benefit, that is a benefit itself. What they might have done is paid you a 'grossed up' amount through payroll to cover the tax? They would still need to give you a P11d. Perhaps ask Payroll?

It's important that the cash equivalent boxes on the form are correct as HMRC will use these when they assess the tax that is due. They will either ask for a payment or put it through the tax code, depending on the amount.

xylophone

Re "making good" see

http://www.hmrc.gov.uk/manuals/nimmanual/NIM15201.htm