Van Tax

wrighty_3

Long story im afraid.

I started my new job in november of last year, since then I have had a company van which I use for personal use and fuel is paid for. Looking at my previous payslips it does not look as though I have been paying tax (my tax code is 491L). Speaking to a collegue he says that when he started he was not paying tax but he is now and also paying back the tax he missed (his tax code is now 64l but was 222l for a while).
I had a letter through from HMRC saying that I could have possible been paying too much tax??? I havent filled out the form they sent as yet but I do remember having one payslip where I was down by about £200 ( i thought this may have been the tax for the van).
My problem is I am now moving to a new job which also has a benefit in kind van and I dont want to have a backlog of tax to pay if everything is incorrect. Can someone please help me?

Bean_Counter

Hi,

The taxable benefit on a van with fuel is £3,500 per annum. Hence if you are a basic rate taxpayer at 22% (for this year at least) then it is costing you £770 per annum or £64 per month for transport, which is still not too bad.

However to answer your question, your employer will notify HMRC on the P11D once a year that you have a van benefit. However this an take a long time to turn into an amended tax code and as you rightly say can lead to a build up in unpaid tax.

If I were you I would write to your local tax office and ask them to amend your tax code, so that you start paying the tax on the van sooner rather than later.

Just out of interest, are you using the van for anything other than travelling to and from your normal place of work?

wrighty_3

Cheers for that! Yes I use the van for personal use with personal fuel!

Bean_Counter

wrighty wrote: »

Cheers for that! Yes I use the van for personal use with personal fuel!

I was just wandering if you just used your van for business or ordinary commuting, you could make use of the restricted private use condition and the benefit would nil (I think.)

Have a look at this HMRC link and this link.