Company Car Tax

Bangcillit

Hi everyone, 

Apologies in advance for the slightly (very) long read, but I've tried to keep it as entertaining as possible the whole way through. My girlfriend recommended me to look at MSE for tips and feel like I'm checking it everyday now! Such a good site and great advice for free. Was looking for help to do with my company car tax so thanks in advance for any pointers

I work for a German company in the UK. We don't have an office here so I've been working from home, like (mostly) everyone else for the last year or so.. 
The car was leased in the UK and I had to use it due the size of the car and the equipment I needed for work. So I didn't have a choice having the vehicle, unless I wanted to quit. I didn't want to have the car; it wasn't exactly flashy (VW Touran) and especially because of lock down meaning it would be parked for the majority of the time - but I was told by my work that if I only use it for work trips then I don't have to pay any tax for it. This was ideal because for me as I didn't want, or want to pay for the car, and found it bit mad that I would have to pay even something towards it if I only had to use it for work.  
I picked the car up in November and the lease ended in May so after that I thought this was the end of it. 

Fast forward to my last pay and my tax was 3 times as much as it should've been. I spoke to the HMRC and been told that if I keep the car at my personal address then I have to pay tax for it. This is because it is "available" to me and the government assumes I use it for personal use, even if you don't (mental). To me whether it is right or wrong, it's total BS, but that's besides the point. I was told it's only eligible for tax because it was parked at my house, even though I had no where else to park it.... I.e if it had been parked at the office I wouldn't have to pay for it... the office that is in Germany. I mean technically it was parked on the street beside my house so I feel there could be some legal contention there but I don't really want to spend anymore time on this then I need to. 

I've had a rather long and frustrating call will the tax office getting answers on this - and the resolution I got was that it's not really fair, but there's nothing they can do about it and I will have to pay it. Again this seems ridiculous to me, but I shouldn't really surprised by the tax office doing things that are unreasonable, or unfair.  
Legally I feel like there's nothing I can do about it but I wanted to check and see if anyone has had a similar experience and maybe offer some advice?

Again I find it mad that they government think it's perfectly acceptable to take out like a third of your pay in one month, without any warning. Then I'm told that I might get a refund next month, or might have to wait till April. Again I shouldn't be surprised by this treatment but it's pretty frurstrating, hence the big message here haha. 

If anyone has had this happen to them and found a way around it, it would be great to have a chat with you about it. 

I've accepted that my ideal resolution of me getting all my money back, and the tax office being ridiculed on GMB for this happening is a bit unlikely... but you can always hope. 
One thing in particular I wanted to ask about is how the fuel is calculated, and if there's anything been changed because the lockdown (assuming not but it should've). In my head you're getting taxed on a fuel estimate for a year, where we were told to stay at home for most it and not travel. I.e the fuel estimate will be completely wrong so should be scrapped or lowered? Again that's expecting the tax office to be reasonable about this lol. 

If you've got this far, well done as this was some read, and appreciate your time. I hope this was somewhat entertaining to read... and if anyone can offer some pointers on this I'll buy you a virtual beer!

Cheers, 
Scott

molerat

Likely better off in the tax forum rather than motoring

but .....

Work were wrong and tax office are correct.  If the car is available you are taxed on it. Private fuel is calculated as a set figure, £24600 for 21/22, multiplied by the car's BIK % irrespective of the actual use unless you have an arrangement to pay for private miles.  During lockdown some did get a reduction if the car was made not available at all but if you are using it for work then that option is not there.

sheramber

Don't shoot the messenger.

HMRC do not make the rules. They implement what the government decides.

Take your complaint to your MP.

Jenni_D

Doesn't help with your question, but ... are you eligible for Working From Home tax relief?

https://www.tax.service.gov.uk/claim-tax-relief-expenses/only-claiming-working-from-home-tax-relief

AdrianC

Bangcillit said:

but I was told by my work that if I only use it for work trips then I don't have to pay any tax for it.

They're right in that if the vehicle is only available to you for business purposes (excluding commuting), then there is no tax to pay. They're wrong in that there is no way for you to leave the vehicle at your employer's premises and only take it when required, so it is always available to you.

I picked the car up in November and the lease ended in May so after that I thought this was the end of it. 

Fast forward to my last pay and my tax was 3 times as much as it should've been.

Presumably, because you hadn't paid any tax on it during the six months it was available to you...

I spoke to the HMRC and been told that if I keep the car at my personal address then I have to pay tax for it. This is because it is "available" to me and the government assumes I use it for personal use, even if you don't (mental). To me whether it is right or wrong, it's total BS, but that's besides the point. I was told it's only eligible for tax because it was parked at my house, even though I had no where else to park it.... I.e if it had been parked at the office I wouldn't have to pay for it... the office that is in Germany.

That's the way the law works, yes.

I mean technically it was parked on the street beside my house

It was available to you.

Again this seems ridiculous to me, but I shouldn't really surprised by the tax office doing things that are unreasonable, or unfair.

Whether you regard it as unreasonable or unfair is beside the point - that is the way the law works.

Again I find it mad that they government think it's perfectly acceptable to take out like a third of your pay in one month, without any warning. Then I'm told that I might get a refund next month, or might have to wait till April.

They've taken it out all in one go because they hadn't taken it out at the time - you had the use of that money that you shouldn't have done, for up to six months.

One thing in particular I wanted to ask about is how the fuel is calculated, and if there's anything been changed because the lockdown (assuming not but it should've). In my head you're getting taxed on a fuel estimate for a year, where we were told to stay at home for most it and not travel. I.e the fuel estimate will be completely wrong so should be scrapped or lowered?

Is your employer paying all fuel, and doesn't expect you to reimburse them for private mileage...? Then the fuel benefit tax payable is calculated on the value and CO2 of the vehicle, no more. Your private mileage is not taken into account in calculation - because there's no need for you to log it.