Self Assessment

Gareth4321

Ok, so not to lose people, let me outline the history on this -
1) I work for a company as an asbestos analyst and travel all over. As a part of the job, I get a company car for business and personal use via a fuel card.
As this is a benefit in kind, I lose £10k of my personal tax allowance and pay tax after the first £1.5k at the standard rate or whatever it is. So in short, I pay for the benefit in kind via PAYE.
2) My partner and I also run a pub and I am on the books as a director in name only. We are supposed to get paid via profits made at the end of the year but I do not get anything (I actually put money in!).
So, HMRC contacted me to advise that I have started on my self assessment that I have a zero income, which I agreed with.
However, ,my employer submitted a P11D form stating that I have use of a car, which again I agreed.
As a result of this, they now want £3200 for the last two years for the benefit in kind that I have been receiving for the personal use of the car.
I explained that I pay for the car via PAYE and it is nothing to do with the business, as I also have a Nissan Navara for the pub (which I pay for).
In my opinion, I am paying twice for the same item and equally my accountant didn't pick up on this, hence why I didn't think it was a problem.
HMRC told me that I am wrong.
So I have been forced to pay one year up front and paying for the second on drip.
Anyone who is an expert on tax advise?

Savvy_Sue

What does your accountant say in response to HMRC?

Does the accountant ONLY deal with the pub side of things?

A loss in self-employment may be set against tax due in employment, but I am no expert (on anything, and definitely not on tax and cars!) and others are, although this might be better on the Cutting Tax board.

poggles

Gareth4321 wrote: »

Ok, so not to lose people, let me outline the history on this -
1) I work for a company as an asbestos analyst and travel all over. As a part of the job, I get a company car for business and personal use via a fuel card.
As this is a benefit in kind, I lose £10k of my personal tax allowance and pay tax after the first £1.5k at the standard rate or whatever it is. So in short, I pay for the benefit in kind via PAYE.
2) My partner and I also run a pub and I am on the books as a director in name only. We are supposed to get paid via profits made at the end of the year but I do not get anything (I actually put money in!).
So, HMRC contacted me to advise that I have started on my self assessment that I have a zero income, which I agreed with.
However, ,my employer submitted a P11D form stating that I have use of a car, which again I agreed.
As a result of this, they now want £3200 for the last two years for the benefit in kind that I have been receiving for the personal use of the car.
I explained that I pay for the car via PAYE and it is nothing to do with the business, as I also have a Nissan Navara for the pub (which I pay for).
In my opinion, I am paying twice for the same item and equally my accountant didn't pick up on this, hence why I didn't think it was a problem.
HMRC told me that I am wrong.
So I have been forced to pay one year up front and paying for the second on drip.
Anyone who is an expert on tax advise?

Why have you told HMRC you are self employed?

In (1) you say you you work for a company, and if I am correct, you admit you are paid via PAYE

In (2) you are a director, presumably of a limited company.

The company car you have as part of your employment in (1), you say has it's BiK covered by the PAYE coding you have been given.

I'm sure HMRC know what coding they have provided you with, and why, but if they have accidentally overlooked this, it surely isn't difficult to provide them with the coding advice you were sent covering the years in question, which will detail why you had the coding you had.

I agree with Savvy Sue, this really isn't anything to do with Small Business, and support the suggestion it would be better placed on the Cutting Tax board.