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Received a tax bill for £400 I don't owe.

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Received a tax bill for £400 I don't owe.

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Hi,
1st post so hoping someone can come up with a solution to my problem.
I have received a letter saying that I owe £400 because my ex-employer filled in a P11D saying I had use of a company van for private use. The company did have vans but  I had to drive to my place of employment to be picked up to be a passenger to complete my days work. It would appear all my colleagues have had this letter too. We all left 6 months ago when they tried to reduce our terms and conditions but have kept in touch sporadically.
I rang HMRC who told me that because my ex-employer had received the P11D they act in good faith thats its true and told me to sort it out myself. They also said ring ACAS.
Acas said taxes were not their issue and that was poor advice to give.
I rang my ex-employer up who said most people had now left but he remembered me and confirmed I drove my own car to work each day. He said they had no intention of re-submitting the erroneos P11D as we were no longer employees. Its like revenge for leaving. I've spent the whole day being bounced between 3 parties and no-one seems willing to do anything to sort this mess out. I think that if I say something is wrong HMRC should have a duty to investigate but they claim there is nothing they can do - I don't think this is fair or true.
Any advice please? 
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Replies

  • gettingtheresometimegettingtheresometime Forumite
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    What did it say on your P60 for the 19/20 tax year & on your P45?
    Lloyds OD / Natwest OD / PO CC / Wescott / Argos Card / JD Williams cleared :) thanks to the 1 debt v 100 day challenge
  • BrynsamBrynsam Forumite
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    ste133 said:
    I think that if I say something is wrong HMRC should have a duty to investigate but they claim there is nothing they can do - I don't think this is fair or true.

    If that were the case, HMRC would be buried in investigations within days. You need some sort of 'evidence' to support your argument, which does sound entirely valid.

    I'd write to HMRC and outline your conversation with your former employer - and if you can get other colleagues to join you, it will lend considerable weight to your argument.
  • ste133ste133 Forumite
    7 posts
    First Post
    What did it say on your P60 for the 19/20 tax year & on your P45?
    I will dig it out and look.
    For a little more background I had 3 employers listed but only 2 real jobs - let me explain.
    Company 1 I was very happy and contented. Out of the blue we are told that Company 1 is going into administration but we will all be going to Company 2 in the same premises, vehicles etc. Company 2 then tries to implement new T/C's which we all refuse and most of us leave. I then join Company 3 just before Covid strikes and as my partner is a teacher (with nursery shut) I have to resign and look after child with no pay (apart from partners salary). This Vehicle van benefit relates to Company 2 but not company 1.
  • ste133ste133 Forumite
    7 posts
    First Post
    Brynsam said:
    ste133 said:
    I think that if I say something is wrong HMRC should have a duty to investigate but they claim there is nothing they can do - I don't think this is fair or true.

    If that were the case, HMRC would be buried in investigations within days. You need some sort of 'evidence' to support your argument, which does sound entirely valid.

    I'd write to HMRC and outline your conversation with your former employer - and if you can get other colleagues to join you, it will lend considerable weight to your argument.
    We have established a Whattsap group for employees that left company 2 which is how I know we have all received the same letter. Some can't be bothered to fight, some might be actually liable bit I most certainly am not. I have wasted 2 hrs on the phone today being bounced around.
    I think there was something like 8 workers sharing 4 vans yet we are all classed as having full private use. As stated I drove to work in my car.
    Because I took 3 months off work with no pay/benefits to look after my kid I need to fight this as its not fair.
  • Comms69Comms69 Forumite
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    You can of course take the ex employer to court. 
  • edited 16 September at 9:52AM
    68ComebackSpecial68ComebackSpecial Forumite
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    edited 16 September at 9:52AM
    On the balance of probabilities HMRC will side with the employer. Employers don't report non existent benefits in kind, unless they are incredibly stupid, because it creates an NI cost to them in addition to the tax cost to the employee. 

    A £400 tax cost to an employee (assuming a basic rate taxpayer) equates to a £2,000 benefit. This would give rise to an NI cost to the employer @ 13.8% equating to £276. Why would an employer make an erroneous report which will cost them this much money?
  • ste133ste133 Forumite
    7 posts
    First Post
    What did it say on your P60 for the 19/20 tax year & on your P45?
    Found P45 and it just shows total earned and tax paid.............nothing about BIK like a works van (which I never had). Point being ex-employer has made a mistake and doesn't want to rectify this as we left..............common sense says that a company won't have as many vehicles as employees when we worked as 2 man teams in construction/maintenance.
  • ste133ste133 Forumite
    7 posts
    First Post
    Comms69 said:
    You can of course take the ex employer to court. 
    Been down that road (small claims).......took 2 years to sort and lost more in lost working time than I gained so for £400 its not cost effective - can't believe HMRC doesn't have a dispute resolution process when an obvious (and perhaps cynical) error has been made.
  • TBagpussTBagpuss Forumite
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    If you are sure that the bill is wrong, then write a letter to you employer, set out the situation, including the fact that they have verbally conformed that you never had a van, and ask them to correct their error alternatively to provide you with £400 to pay HMRC, and state that if they are unwilling to do so you you will take further steps as necessary to recover the incorrectly charged money from them, as the bill is entirely due to their filing incorrect documentation with HMRC

    Send it to whoever deals with payroll, cc'd to the CEO / Managing director, and ask that they forward you a copy of the revised form and any relevant correspondence when they send it to HMRC

    You can also write to HMRC setting out the same information but including the fact that the employer has confirmed that the form is inaccurate but is refusing to issue a fresh on as you are no longer a current employee. 
    All posts are my personal opinion, not formal advice Always get proper, professional advice (particularly about anything legal!)
  • ste133 said:
    What did it say on your P60 for the 19/20 tax year & on your P45?
    Found P45 and it just shows total earned and tax paid.............nothing about BIK like a works van (which I never had). Point being ex-employer has made a mistake and doesn't want to rectify this as we left..............common sense says that a company won't have as many vehicles as employees when we worked as 2 man teams in construction/maintenance.
    Benefits in kind are not declared on either P45 or P60 - they are on form P11D which should have been issued to you by early July for the 2019/2020 tax year.
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