PHEV Electric Range Issue

Powapa

Hello all, 

I have received a tax bill from HMRC for underpaid tax on my company car for the tax period 2020 -2021. This is due to the electric range on my PHEV being inputted as more than it actually is (50 miles instead of 25) meaning my BIK was lower. I have checked with my car fleet team who advised when I had the car on the 18/11/2019 it wasn’t a requirement from HMRC to input electric range it apparently became a requirement in April 2020 so they believe the 50 mile range has been inputted by HMRC themselves. If this is the case where do I stand with this? 

Dazed_and_C0nfused

Quite well.

Think of it as an interest free loan which is presumably going to have to be paid back on either 31 January 2022 or Vai your wages from your first payday after 5 April 2022 through your final payslip before 6 April 2023.

KingOfSnake

You have my sympathies - the taxation of cars has become monumentally complex. Firstly, make sure you have the range in miles - as these are often quoted in kilometers. Next, as yours was registered before 6/4/20 you need to use the NEDC figures (box 49.2 I think on the certificate of conformity) whilst it is WLTP for cars after that date. This can make a big difference. Assuming these are all correct (never assume) then HMRC are within time to amend codes/ send out tax bills. By the sounds of it, the BIK percentage for this year will be approximately double what you were anticipating. If you are going to struggle paying the additional tax contact HMRC and ask for a time to pay arrangement, or have the underpayment coded out across a number of years.