Benefits In Kind

dancov

Hi all,

This is my first post so apologies if it isn't in the correct section!!

I have been getting a lift to work since February last year in a company vehicle. My employer encouraged me to get a lift as it would save me using my own vehicle. This sounded great so I accepted the offer.

Today my employer has told me that after a vist from HMRC they have discovered that me getting a lift in a company vehicle is in fact 'benefit in kind', which is a taxable benefit.

My employer now has to fill out a P11D and I am due to pay tax for the tax year 2007/2008.

Can I claim this money back from my employer as they never told me it was a taxable benefit?

Thanks!!
Daniel

Lisadp1970

You can ask your employer but I believe, legally, that you are responsible for any and all taxable benefits that you recieve in pursuit of your duties.
You may want to take this up with your HR Department.

peter999

dancov wrote: »

I have been getting a lift to work since February last year in a company vehicle. My employer encouraged me to get a lift as it would save me using my own vehicle. This sounded great so I accepted the offer.

Today my employer has told me that after a vist from HMRC they have discovered that me getting a lift in a company vehicle is in fact 'benefit in kind', which is a taxable benefit.

My employer now has to fill out a P11D and I am due to pay tax for the tax year 2007/2008.

Your employer should not have dumped you in it !!

Do you know who & how this was done ??

This sounds like an informal rather than formal arrangement, your employer should cover any past obligation & you should agree how you work this in future if it continues.

peter999

m.colak

Just thought i'd post on this one. Don't worry about the P11D its basically a self assessment tax form. So on that note don't forget to add things like £140 a year for hair cuts and check out what your clothing allowances. The basic rule is if you get a P11D claim everything you can and you will end up with a tax rebate and the tax man won't bother you ever again.

krisskross

m.colak wrote: »

Just thought i'd post on this one. Don't worry about the P11D its basically a self assessment tax form. So on that note don't forget to add things like £140 a year for hair cuts and check out what your clothing allowances. The basic rule is if you get a P11D claim everything you can and you will end up with a tax rebate and the tax man won't bother you ever again.

I assume the OP is PAYE where you can't claim for any of that stuff. He could claim for union subscriptions, laundering of clothing for specific jobs or for the purchase of safety boots.This is only a tax free allowance and not what you actually spend. But if he is PAYE certainly not for haircuts etc.

dancov

Hi,

I am a regular employee on PAYE tax.

Bean_Counter

dancov wrote: »

Today my employer has told me that after a vist from HMRC they have discovered that me getting a lift in a company vehicle is in fact 'benefit in kind', which is a taxable benefit.

This may turn out to be correct, but I have not come across this before.

My understanding of what triggers the benefit in kind charge for a company vehicle is that it is available for private use. Assuming that you are on the driver, I can not see how the vehicle is available to you for private use (as the driver would have it.)

I can't see the logic for you having a taxable benefit.

In addition, how is the company working out the value to put on the P11D?

dancov

Bean_Counter wrote: »

This may turn out to be correct, but I have not come across this before.

My understanding of what triggers the benefit in kind charge for a company vehicle is that it is available for private use. Assuming that you are on the driver, I can not see how the vehicle is available to you for private use (as the driver would have it.)

I can't see the logic for you having a taxable benefit.

In addition, how is the company working out the value to put on the P11D?

I am not the driver so don't use it for personal use, although I did read that 'commuting' is considered personal use. So maybe commuting as a passenger counts?I think the value is worked out by the value of the vehicle, the CO2 emmissions and things like that.

Bean_Counter

dancov wrote: »

I am not the driver so don't use it for personal use, although I did read that 'commuting' is considered personal use. So maybe commuting as a passenger counts?I think the value is worked out by the value of the vehicle, the CO2 emmissions and things like that.

So by the sounds of it you are going to be hit for the full car benefit charge - expensive!

I would certainly fight this with the company (it costs them extra tax on your benefit in kind) and with HMRC.

Here's what I would do (based on these links to HMRC website.)

1. Look at this link. This relates to the test whether the car benefit can be charged.

2. I am now going to focus on the availability issue. Look at this link. This covers the definition of available.

3. I'll now look at EIM23511, where they accept that a car is not available. Link. It clearly states that on HMRC own's manual that the car is not available to you because you can not get access to the car because you do not have the keys.

Hence for the reasons above, I do not think that you should have the P11D benefit. Please follow this up as it could be saving you £100s of tax.

Let me know if you need more info.

donnalove

i'll follow this post with interest as hubby gets picked up for work, by a coworker who has company car.
i cant see how it can be taxable though

dancov

Bean_Counter wrote: »

So by the sounds of it you are going to be hit for the full car benefit charge - expensive!

I would certainly fight this with the company (it costs them extra tax on your benefit in kind) and with HMRC.

Here's what I would do (based on these links to HMRC website.)

1. Look at this link. This relates to the test whether the car benefit can be charged.

2. I am now going to focus on the availability issue. Look at this link. This covers the definition of available.

3. I'll now look at EIM23511, where they accept that a car is not available. Link. It clearly states that on HMRC own's manual that the car is not available to you because you can not get access to the car because you do not have the keys.

Hence for the reasons above, I do not think that you should have the P11D benefit. Please follow this up as it could be saving you £100s of tax.

Let me know if you need more info.

This could be priceless advice, I can't thank you enough.
I promise to keep everyone informed of the outcome.

What a wonderful website!!

Thanks guys
Daniel