HMRC have screwed me

karcal

I have just got a tax bill for almost 5K.

Its to do with my company car - apparently the IR didnt put through my tax code properly even though our accountants have confirmed that they were given the correct info. As a result of this, I have not been paying the correct tax and they now want 5K within 2 weeks - great eh!!!!

Do I have any comeback on them for their mistake?

Also, does anyone know if I still get taxed if my car is a pool car?

One last question. If I have company shares (at nil consideration), do I get taxed on these or only when there is a dividend?

At present my car is a benefit in kind and costs me over £200 each month. I dont need it that badly at home.

Any help would be appreciated.

dunstonh

Do I have any comeback on them for their mistake?

No.

They will argue that you should have noticed your tax code was wrong and to be honest, you should have as it usually makes a massive dent or even bring you to K code.

What you should do is aim for a correction via your tax code (although with only 2 months left of the tax year (Feb and March) then that would be painful. Or, ask them to pay it back over next years tax code or an agreed repayment schedule over 6-12 months.

sarahlouise210

You really need to give a bit more information ....
what years does this relate to ? If you are really being asked to pay in 2 weeks then I assume that this is for previous years and you have received numerous demands ??? On the limited information you have provided I am asuming that to accumulate 5K debt on a Co car you must have had it for a few years and not paid anything. If your company is stating that they notified HMRC then that is to be established but may not have have happened util the tax year ended anyway - it is your own responsibility to notify HMRC when you get any company benefits. Please give more info

Shares are taxable if you purchased them at a beneficial rate

chrisxr2

You only do not pay tax on a pool car if it is for the use of the whole company it is a very hard thing to prove. I would guess as said above you hve not payed company car tax for at least 2 years, surely you would have noticed the extra 200 quid in your pay. Unfortunately it is down to you to let hrmc know as i have been there myself but thankfully only missed 3 months payments.

karcal

sarahlouise210 wrote: »

You really need to give a bit more information ....
what years does this relate to ? If you are really being asked to pay in 2 weeks then I assume that this is for previous years and you have received numerous demands ??? On the limited information you have provided I am asuming that to accumulate 5K debt on a Co car you must have had it for a few years and not paid anything. If your company is stating that they notified HMRC then that is to be established but may not have have happened util the tax year ended anyway - it is your own responsibility to notify HMRC when you get any company benefits. Please give more info

Shares are taxable if you purchased them at a beneficial rate

They were gifted to me - I wouldnt have thought that I should be paying tax unless I am getting a direct benefit (like a dividend).

Bean_Counter

karcal wrote: »

Also, does anyone know if I still get taxed if my car is a pool car?

As Chris said, very difficult to prove a pool car. Here is a link for HMRC definition.

dunstonh

They were gifted to me - I wouldnt have thought that I should be paying tax unless I am getting a direct benefit (like a dividend).

How were they gifted? Was it under an approved HMRC scheme?

zfrl

Aren't the shares only taxable if you sell them, or is that what you are asking?

sarahlouise210

not quite sure what you are saying - if you were given the shares for nothing then they will almost certainly be taxable (just like when you are given a car for nothing or medical benefit etc)

karcal

zfrl wrote: »

Aren't the shares only taxable if you sell them, or is that what you are asking?

Pretty much. I was given the shares for my work in the company - didnt pay for them at all. Someone told me that I will have to pay tax because I have shares but I dont think its correct. As Iv said, surely I can only get taxed on something like a dividend or when I sell them??

dunstonh

You keep saying you were given them. Was it under a profit sharing scheme or other employee benefits scheme? Different taxation rules apply to HMRC approved schemes.