BIK Undercharge - Rights

Elliot_J

Hi,

many colleagues in my global consumer goods business processed huge refunds on an over charge of BIK tax due to incorrectly admin from our business. I followed the same procedure and was told over the 6 years in question 2017-present I owe £600 and they’ll be claiming that back Oct-Mar on my payslip. What right do I have to say this was a company error and as such they should clear this debt which would not have previously been brought to their attention. 

Thanks in advance 

MorningcoffeeIV

Elliot_J said:

What right do I have to say this was a company error and as such they should clear this debt which would not have previously been brought to their attention. 

No right. 

You can ask them if they fancy throwing you some extra cash, but expect them to say now. 

Keep_pedalling

If they had overcharged you for 6 years you would quite rightly expect them to correct their error, so it is only right that it works both ways.

If it is going to cause you financial hardship ask for it to be paid back in instalments.

Marcon

Elliot_J said:

Hi,

many colleagues in my global consumer goods business processed huge refunds on an over charge of BIK tax due to incorrectly admin from our business. I followed the same procedure and was told over the 6 years in question 2017-present I owe £600 and they’ll be claiming that back Oct-Mar on my payslip. What right do I have to say this was a company error and as such they should clear this debt which would not have previously been brought to their attention. 

Thanks in advance 

You don't have any rights, but how are your negotiating skills?

[Deleted User]

It's not clear what these "BIK tax refunds" relate to and how they have arisen and have just recently come to light.

Has your employer incorrectly reported expenses and/or benefits for some employees to HMRC over a number of years since 2017 and now has a "debt" of the total tax involved and is intending to deduct the amounts relating to each individual from them?

If so, the alternative presumably would be for HMRC to recover the amount of tax you owe directly from you. Surely it's far easier to pay the £600 over the next six months via your employer?

Elliot_J

Thanks for the comments everyone. It’s clear I’ll have to pay back but I’ll try and negotiate a lower value. Fingers crossed

LightFlare

In a job earning close to 100k I would be surprised if they budge over a “mere” £600

Best result will be spreading payments over a couple of months

DullGreyGuy

Elliot_J said:

Thanks for the comments everyone. It’s clear I’ll have to pay back but I’ll try and negotiate a lower value. Fingers crossed

HMRC gets what HMRC is owed, you are more likely to find an employer willing to spread it over a couple of payslips rather than paying your tax for you