Company Car Tax

[Geekee]

I have a large tax bill for underpayment of company car tax.

Company failed to tell the tax man what car I was driving.

Whos fault is this and canI get the company to pay?
Is there a 'watchdog' organisation for these sort of queries?

Thanks

[Oneeyedvic]

Sorry, but this is totally your own fault. You should have informed the tax man that you drive a compnay car and have a benefit in kind. The company often inform them but often not until the P11Ds are due.

With a bit of luck, the tax man will not ask for the money all in one go but adjust your tax code for the following year. This may put you into a negative tax code for a year.

[Geekee]

Hi

Thanks for your reply. I actually work for the car industry and the company did tell the tax man that I was driving a car of a much lower value than I actually was. So I have been taxed at the incorrect rate.

P11D's were also late being submitted by the company. Will this have an effect?

The entire company car driver work force have been effected by this and the company have offered to pay a percentage of the tax bill. (My fulll bill is 3k) Is this because they know that they are partly to blame and this is goodwill? Or should we have to double check the band the company automatically put us in?

Questions eh??!

Yours

Angry and broke Geekee

[Oneeyedvic]

Outside of my area of expertise. To be honest, i would suggets that you call your local tax office 0- they don't actually have two headed people work for them - they can actually be quite nice!

I suspect that it will still be your fault (sorry) as you must inform them yourself, not rely on your company. The P11|D issue may make the company slightly more responsible, and I am guessing that they are saying it is a goodwill gesture and does not imply guilt on their behalf.

Either way, to be honest the amount needs paying - regardless of whether you have been taxed incorrectly or not.

[panhandle]

I agree with Oneeyedvic the onus is firmly on you to inform your Tax Office that you have a company car, I know as I have been in your position. For your company to offer to pay a % of the bill is very generous. What you owe should be able spread over the tax year.

My wife works in the car industry, has a car but makes a small contribution, out of her pay, towards the cost on a monthly basis. Thus all liability for tax is avoided - excellent scheme that perhaps your company could consider .

[kags]

As has been said above, your tax code is your responsibility, and you have paid insufficient tax, so you will be asked to repay it, even though you wre unaware of the error. Your employer may have had to pay substantial penalties for submitting incorrect P11ds, but that is not much consolation to you!

You should be aware that the company paying part of your tax bill could in turn lead to another tax bill as it could be treated as a benefit in kind. It depends on what sort of settlement (if any) has been made with the Inland Revenue in this respect. Check with the company about this, as it might result in another unexpected bill.

[GruntFuttock]

Not only should you be made to pay the unpaid tax-you should be soundly flogged for your damned impertinence!

[GruntFuttock]

Sorry-I used to work for the Inland Revenue-old habits die hard!