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Car purchase loan scheme company car and tax implications

(20 Posts)
Boxermax13 Sat 19-Nov-16 07:24:08

I'm so upset and confused other half filled out 2014/2015 self assesment and we ended up with a £5800 underpayment we have gone through all the complaints with HMRC
He worked for 1 company from April 2014 to end of August 2015
He got a P11D June 2015 with a £6500 car fuel benefit filled in on box 15 or M plus a seperate sheet with the breakdown of costs he paid £57 through paye for his car purchase loan scheme
He then started a new employment 1st September 2015 and got a normal P11D with a company van and fuel benefitbox 9and 10
But my question is should the whole benefit for 1st employment be added to his income this took him over the £60,000 threshold with the underpayment arising due to child benefit and underpayment of tax or should some of the P11D figure be taken out as some was paid under paye so confused

Ta1kinpeece Sat 19-Nov-16 19:54:30

The value of the benefits is counted as part of his income
so £55000 salary plus £6000 benefits = £61000 total income

The P11d in June relates to the previous tax year (up to April)
the new job will get a different P11 d

Boxermax13 Sun 20-Nov-16 05:34:00

Thanks for the reply as it was a Car purchase loan though and he paid towards it every month are the tax implications alot less and should he have claimed some milage expenses back

Boxermax13 Sun 20-Nov-16 06:04:32

Sorry if it's a bit all over the place but I think one year he got a claim form for mileage
The p11d covered 6/4/2014 to 19/08/2014 fuel benefit was over £2,000 which seems a bit steep

Boxermax13 Sun 20-Nov-16 10:59:14

Hi again
Looking at the figures again we think the P11D from his old employer is for the whole tax year and not the 4 1/2 months he worked during that year

Ta1kinpeece Sun 20-Nov-16 13:59:31

I think you are confusing tax years.
New employer can only do P11d for 15/16
old employer has to cover all of 14/15 and part of 15/16

fuel benefit of £2k or car benefit ....

his best bet is to talk to current HR and get them to check as they could work out a recoding application

Boxermax13 Sun 20-Nov-16 14:47:41

Thanks for the reply again all I'm saying is a benefit in kind for just 4 months is a large amount at £6500

Ta1kinpeece Sun 20-Nov-16 15:29:32

Did you keep the car?

Boxermax13 Sun 20-Nov-16 15:55:48

No it the company did

ElizaSchuyler Sun 20-Nov-16 15:59:24

Hmrc are unfortunately notorious for cocking up p11 d.

I do payroll & when we submit them we always have a colleague witness it they are so bad but even so two of the staff with company cars were given the wrong tax code lastvyear so now have to repay tax.

Ta1kinpeece Sun 20-Nov-16 16:00:35

Hmm, yup, I agree with Eliza. Get HR in the current company to check both P60's, the P11Ds and the P45

ElizaSchuyler Sun 20-Nov-16 16:14:51

Car fuel benefit is the fact that he was presumably given free petrol/diesel for private use. This is calculated according to the emissions category of the car not how many private miles or how much petrol an employee uses.

Some of our staff have decided the benefit isn't worth it so keep a business mileage log & re-pay to the company any private mileage.

Boxermax13 Sun 20-Nov-16 16:28:07

Thanks for all your help HMRC have said it's not them even though he then worked else where and had a new tax code lower pay and company van

Boxermax13 Sun 20-Nov-16 16:32:56

Have hounded us even when we said ok enough is enough we cant afford to pay it back even though we still don't think it's his fault we will pay £200 a month they won't accept it and have threatened bailiffs and debt collectors

Oblomov16 Sun 20-Nov-16 16:53:56

HMRC do make mistakes. I've been dealing with them re a mistake, recently.

But I too think you are getting confused.

Your statement that the P11d ran from Apr 14 to Aug 15, can't be right.
That's 16 months.

14/15 : 6/4/14-5/4/15
15/16 : 6/4/15-5/4/16.

Don't let them bully you. Ring back and talk to them about it.

But before you do, get some good advice, either here, or a nice payroll person at your company, or similar, so that you have all the facts and figures correct and available to hand when your ring HMRC.

Boxermax13 Sun 20-Nov-16 17:33:10

Whoops sorry my mistake 2014 it should have said if I post up the figures tomorrow hope you could help out by taking a look

EnormousTiger Sun 20-Nov-16 19:23:55

I agree with those above - loads of people have stopped taking fuel benefit in kind due to heavy tax and just pay for private mileage to employer as they use it.

Boxermax13 Mon 21-Nov-16 09:12:51

Morning everyone
Here are some figures for you to look at any help would be much appreciated
First Employer 6/04/2014 to 19/08/2014
P11D additional sheet

Other -int on value 6/04/14-19/08/14 373.61 257.48 amount made good
Insurance 447.12
RFL 44.49
Maintenance 245.00
Depreciation 3040.98
Fuel 2182.36
Gap period 293.34

Class 1A totals £ 6770.71 £ 257.48

Overall totals £6770.71 £257.48

Salary for this employer £25342.98 tax deducted £5546.70 tax code 701L

Second employer P11D Van £1837.07
Fuel £345.42

Salary this employer £28916.00
Tax £6072.37 tax code 720l M1

I have since realised he can claim business miles he did alot of milage
The previous year 2013/2014
He never claimed for we have P87 at home

I hope it makes sense
Thanks for taking a look

EnormousTiger Mon 21-Nov-16 09:13:50

(The accountants on here can hopefully advise. Do everyone also watch the Autumn Statement coming up as it is likely there will be a massive hit on all kinds of employer provided benefits even more than the hits we have already seen).

Boxermax13 Mon 21-Nov-16 11:26:33

Think I have sussed it the car benefit is the loan written off which is alot the fuel is business plus private full benefit expensive way but found a letter from his HR department stating he can claim business miles
on the car because it makes it his the loan due to the CPLS scheme he was in.
They swopped the cars a couple of times to keep the mileage down we also have the sales receipt for the car with first registration plus his milage when returned so from that I guess he can claim business miles as we can prove it all to HMRC .
My next question can he amend his tax return he did it online or because it's all been dealt with by the complaints dept should he write to get them to amend it

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