Model Boat Mayhem
Mess Deck: General Section => Chit-Chat => Topic started by: john54 on March 23, 2008, 10:32:50 am
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Sorry to touble you all with this.
But does anyone on here know whos responsible for informing the inland revenue that an employee has a company car (form p11d) in there employment package.
Is it the firm or the empolyee?
Must find out a.s.a.p tryed looking at i.r sites but did not get anywhere! >:(
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I would say it is the company's Responsibility.. I complete the records for all our employees and have to give a bag load of info for the p11d , size, type , co2 emissions , value etc.
However if self employed this may be a different matter.
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Usually the firm will do so and supply the necessary details but don't rely on the tax people applying them correctly. I had lease cars for years to which I contributed towards the cost and the Inland Revenue got their sums wrong on almost every occasion when allocating my PAYE tax code. During the years in which I changed the car they really surpassed themselves with cocking things up. I got used to having to write to them every year detailing my car benefit and how it was calculated. They never queried my figures - they were probably grateful...
Colin
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If you pay PAYE your wages dept should deal with it.
As has been stated before whether it will be done correctly is always another matter!!
Bob
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Whilst your company might do this, the responsiblity lies with you, the taxpayer, to inform the HRMC of any change in circumstances such as this, that affect your income tax liability.
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Well before I was taxed out of my company car I always took it to be my responsibility to deal with IR as company cars are a taxable benefit and needs to be declared as such on the annual tax return. The P11D is issued by the company is in order that employees may correctly fill in their tax return. They company may well send a copy to the IR but after that their responsibility ends. Graham
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When I started with the company - the car was included in the employment package, so I understood that I would have been taxed accordingly. It was three years later when my tax code had changed for the worse - I discovered when I contacted the tax office - they had only recently been informed. Surely my employer should have told me at the onset, if I needed to inform the tax office as I knew nothing about this.
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Surely my employer should have told me at the onset, if I needed to inform the tax office as I knew nothing about this.
Yep - that's your take on the matter, but you won't find a Tax Inspector who'll take any account of it. Ask me how I know.........
BTW, Man in the Street is exactly right; it's your responsibility to tell the Revenue............and their website is atrocious!
With the amount of tax you now have to pay on a car as a benefit, it's perhaps a good idea to see if the actual cost of your private use exceeds the tax. If not, why not give the car back and ask to have a salary increase in lieu?
FLJ
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Always check how your tax code is calculated - it's quite often wrong. Yes, it's a pain but it could be either costing you a lot of money in overpaid tax or future grief if you've been underpaying. Don't rely on other people to get it right - they probably won't!
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A little bit of confusion, I was not having a go at the IR, as that part of it is under control. It was just that when I took the job on, my employer did not explain to me, who was responsible - (I do not complete a Tax Return as I am on PAYE) they say me - I say them - who is right!
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When I Isaid I was taxed out of the company car it was as FLJ says I was being taxed on a 7 year old car as if it was new. The numbers did not add up especially as I am not doing a lot of miles. When I decided to change I got the company to give me salary increase to cover the costs of running my own car, after all I can buy my own old banger. Then when I use it for business I charge 40p per mile which the max allowed by inland revenue. Company cars are not that much of a perk anymore I am afraid. If all else fails phone the tax office they are not all ogres and it pays to talk believe me. Graham
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As soon as you get a benifit that is on a P11D you should get a tax retun form to fill from your tax office or ask for one so it could be your tax office thta has been slow. Graham.
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Many years ago I got stuck with a huge bill when the IR came after me for not declaring a company car.
The company "forgot" to tell the IR I had a car for a year but I got stuck with the bill AND the company had deduced the payments PAYE! >>:-(
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I too had the same problem, had a freelander for twelve months and found out my accountant forgot to tell the taxman, they adjusted my tax code to compensate, wasnt worth getting paid! >>:-(
Russ
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So its all down to incompetence then >:(
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Looks like a very grey area about time it was sorted out.
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Well, it's not really a grey area in terms of responsibility. As stated in earlier posts, it's ultimately the responsibility of you as the taxpayer to ensure that the Inland Revenue receive the correct details, either by providing them yourself or being pretty confident that somebody else has done so on your behalf. Unfortunately "somebody else's" don't always do what they are suppposed to do or get the details wrong. If you are on PAYE you only have to look at the coding notice you receive just before the beginning of each tax year. If you have a company car and there isn't an entry against "Car Benefit" on the right hand side then it's wrong! If there is, then it's only one further step to check the amount is what it ought to be. Granted the Inland Revenue site can be a bit impenetrable but there's lots of other free car taxcalculators out there if you Google something like "car benefit tax".
Unfortunately, even if it is somebody else's fault that leads you to underpaying tax, it's still you that will have to pay it. Even more unfortunately, if you overpay tax then it's unlikely that it will be noticed, the Inland Revenue ratchet works in one direction only!
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Usually the company would do it - they're supposed to send in returns notifying HMRC of any person issued with a company car on form P46(car)(new) that earns more than 8500 p.a. or is a director. try taking a look here...
http://search.hmrc.gov.uk/kbroker/inldrev/inldrev/search.lsim?sr=0&nh=20&cs=iso-8859-1&sc=ir&ha=7&mt=0&qt=company+cars
Individuals that have an annual P11D form to fill out every year don't necessarilly get a self assessment form as well - our accountants do the P11d's for us where we work - and now they're doing my and my wife's self assessment forms - saved me a fortune the first year and got me a bit back...just got to work on the car now, seriously thinking of a commercial vehicle, my present car is costing around £80 a week out of my wages - but in fairness I couldn't afford to buy and run it for the money I pay to Darling Brown and Co. the last service and two tyres was over 700 quid.
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I had the same problem wtih my private medical insurance, my company did not tell the tax man for three years. When I complained, along with quite a few others the company told us it was our responsability to tell the tax man. We all presumed that as our tax is all taken PAYE why the company did not bother to tell the tax man.
Brian
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Same as above !
Oh well sh*t appens.
I Would like to thank everyone on here for all the advice and info.
Regards to all
John
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Same as above !
Oh well sh*t appens.
I Would like to thank everyone on here for all the advice and info.
Regards to all
John
I found two wonderful ways to avoid these problems:
1. Work for the Revenue; and
2. Don't get any taxable perks.
Strangely, one seemed to be inextricably linked to the other................. These days I've given up No 1 and forsaken even wages :'(
Ain't life a b1tch?
FLJ
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You mean become a pensioner FLJ :D
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If only being a pensioner was the answer.....
Last year ( the 8th. of my retirement) IR sent me a letter saying they would no longer be asking me for an Annual Tax Return. I was delighted as I have had to complete one for the last 25 years.
I have just had another letter saying, "We now require you to complete an Annual Tax Return". I read all the possible reasons for this set out on the reverse of the letter and was unable to identify any reason given which qualified me to make such a Return....except for the catch all at the end "Despite the foregoing we may require you to make a Return". I telephoned the IR, they tried 3 reasons, each of which I showed to be inapplicable. They then said, "Ah well despite the foregoing.........".
Roger in France.
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There is of couse another side to the coin. Despite all of those who would like (expect) their employer to tell the tax office about their employees benifits there is also a group that would cry foul under the data protetion act if an employer did exactly that. The employer never wins, Graham
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Usually the company would do it - they're supposed to send in returns notifying HMRC of any person issued with a company car on form P46(car)(new) that earns more than 8500 p.a.
Does the £8,500 apply to the job with the car attached, or your total earnings, from other firms/pensions etc.
Say you had a car and job but earned only £8,000 from one company but also had a pension completely separately which put you over the £8,500 would the car be taxable?
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You would be best to talk to an independent accountant - but don't tell him your name, he's obliged to be honest with HMRC....I think it 'should' be the job with the car attached, but best check.