Company car - hmrc over charging?

I hope this is in the right place… 

I have a company car which I use for personal use but that company car has been in and out of the garage with faults over the past 18 months so it’s been sat at the garage not being used. As I’m mobile I have to have a car so I began using either a hire car or a spare company car from the company! 

I have now had a letter to say I owe hmrc money and they are telling me that as I used the spare car and the hire car they see this as a benefit so it’s down to me to be charged full tax on the car sat in the garage and also the tax for the spare car I borrowed whilst my actual car was unusable

has anyone else had this happen to them or even be able to offer me any advice?

Thank you in advance  


  • What was the longest period you would class the normal company car was unavailable to you from being in a garage?

    Have you received your copy of the P11D for the tax year HMRC have assessed?
  • 4 months at one point and I’m trying to get hold of that 
  • Bexs2010 said:
    4 months at one point and I’m trying to get hold of that 

    That would suggest you have misunderstood the problem.

    If you don't have the P11D you can have no idea if HMRC have got it wrong.

    I would suspect that the calculation from HMRC is likely to be correct.  Based on what your employer has submitted on the P11D.

    If that is the case then the only way to resolve this is via your employer, not HMRC, as HMRC will require a revised P11D (if it is wrong).

    You might to have a read of this and maybe share it with your employer.
  • Grumpy_chap
    Grumpy_chap Posts: 14,425
    First Anniversary First Post Name Dropper Combo Breaker
    It looks like the OP has their company car, available from date X.  The employer appear to have reported that on the P11D as continuously available from date X.

    Then there was the hire car, available from date Y for a period of 4 months.  The employer also appear to have reported this on the P11D.

    The result is a higher calculation for income tax due.

    What the P11D should show is company car from date X to date Y.  Then hire car from date Y for 4 months.  Then the company car again.
    OR, the P11D needs to just show the company car and make no mention of the hire car alternative for the short period.
  • penners324
    penners324 Posts: 2,603
    First Anniversary First Post Name Dropper
    Speak to your payroll department. Only they can sort this out.

    Your P11D will come from them. They should be able to show you what was submitted as well
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