My employer has incorrectly told HMRC my van is a taxable benefit!

Arthur_D

After just checking my HMRC account due to a strange looking tax code,
It appears my employer has submitted that the van they provided me is somehow a taxable benefit.

To be clear i use the van 100% for business purposes and as a field engineer submit itemised usage paperwork each month to this effect.

HMRC are saying ive had the van from September 2022.

My employer knows this van is 100% business use.

Please help, whats my next move?
I dont have this money to loose.

uknick

Do you take the van home at night?  Is it a vehicle you could use for personal reasons?  Does your employer's insurance policy only cover business use? 

If answers are yes, yes and no you could be hard pressed to prove there's no personal use.

Dazed_and_C0nfused

Arthur_D said:

After just checking my HMRC account due to a strange looking tax code,
It appears my employer has submitted that the van they provided me is somehow a taxable benefit.

To be clear i use the van 100% for business purposes and as a field engineer submit itemised usage paperwork each month to this effect.

HMRC are saying ive had the van from September 2022.

My employer knows this van is 100% business use.

Please help, whats my next move?
I dont have this money to loose.

Firstly don't waste your time arguing with HMRC.

HMRC have acted on information your employer supplied.  If that information is wrong then your employer needs to submit revised information to HMRC.

That's where your next move should be, making sure you get the right person at your employer to help resolve this.

That's assuming they have sent incorrect info in the first place.

mybestattempt

The HMRC Employment Income Manual explains van benefits at:

https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim22701

and where there is insignificant personal use at:

https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim22745

Arthur_D

uknick said:

Do you take the van home at night?  Is it a vehicle you could use for personal reasons?  Does your employer's insurance policy only cover business use? 

If answers are yes, yes and no you could be hard pressed to prove there's no personal use.

We do take the vans home, we are field based services engineers.

Each month We also submit itemised mileage sheets proving 100% business usage.

The default position for these vans is business use only.

Arthur_D

Dazed_and_C0nfused said

Firstly don't waste your time arguing with HMRC.

HMRC have acted on information your employer supplied.  If that information is wrong then your employer needs to submit revised information to HMRC.

That's where your next move should be, making sure you get the right person at your employer to help resolve this.

That's assuming they have sent incorrect info in the first place.

Thanks for the reply,

Ive got an email back from someone in my payroll department saying they've already submitted a new p11d that amended an error made previously.

This p11d was apparently submitted Feb this year.

My payroll say i should contact hmrc and enquire why this p11d hasn't been processed.

I'll also be asking why im on a tax code of 474L

Dazed_and_C0nfused

Arthur_D said:

Dazed_and_C0nfused said

Firstly don't waste your time arguing with HMRC.

HMRC have acted on information your employer supplied.  If that information is wrong then your employer needs to submit revised information to HMRC.

That's where your next move should be, making sure you get the right person at your employer to help resolve this.

That's assuming they have sent incorrect info in the first place.

Thanks for the reply,

Ive got an email back from someone in my payroll department saying they've already submitted a new p11d that amended an error made previously.

This p11d was apparently submitted Feb this year.

My payroll say i should contact hmrc and enquire why this p11d hasn't been processed.

I'll also be asking why im on a tax code of 474L

If I were in your shoes I'd be asking your employer for a copy of the revised P11D - is this basically blank, showing no benefit of any sort was received for (I presume) 2022-23?

Your tax code will no doubt be 474L be used of the impact of the Van Benefit.

There could be 3 elements which impact your current tax code.

1.  Tax owed from 2022-23 (based on the original P11D)

2.  Estimated tax owed from 2023-24 (based on the assumption you had Van Benefit in 2023-24)

3.  Van Benefit for 2024-25 (based on the assumption the Van Benefit continued into the current tax year).