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Company Car Tax

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Hi, my husband had a company truck for going to different sites. Now that they are cutting back they say his job no longer requires a truck so he has to give it back. That’s fine but they are also saying he’s not paid any tax on it and they’re going to let HMRC know so they can claim back 3 years of tax. Just want to know if they can do that or is it there fault for not sorting this out when he was given the truck? Help please 
thanks 

Comments

  • Was it a "truck" or a car?

    If truck what was the vehicle?
  • It was a Ford ranger
  • Ozzig
    Ozzig Posts: 367 Forumite
    Third Anniversary 100 Posts Name Dropper
    Where I work, they're spot on now, but in days of old it could take months (or years) for them to tell the taxman when we had van/car changes.

    Unfortunately, I found out the hard way one year and ended up with a K tax code.

    I was told at the time, I should have noticed that I'd not had a PAYE encoding notice shortly after changing vehicles and should have nipped it in the bud and told the taxman myself. Not sure what the time frames are for companies to update the taxman of these changes.

    As long as you have personal use of a vehicle it's probably going to end up being taxable in one way or another. 
  • Albermarle
    Albermarle Posts: 27,820 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    Presumably he was able to use the vehicle for his own personal use ( at weekends etc )?
    If not, and it was used only for work, then would not be a tax issue. 
  • Grumpy_chap
    Grumpy_chap Posts: 18,249 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    edited 27 May 2022 at 10:40AM
    The Ford Ranger is subject to BIK tax as a company van. 

    The liability to pay the correct tax sits with the individual who should check the submissions from the company such as P11D.

    The back tax will fall to your husband unless the company make a goodwill payment as extra salary, which would also be taxable.
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