Active discussions

Meet the Other Phone. Only the apps you allow.

Meet the Other Phone.
Only the apps you allow.

Buy now

Please or to access all these features

Talk
AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

8k possible HMRC bill - help!

93 replies

mummyrabbitpeppapig · 04/07/2017 07:33

My oh is employed and has to drive in excess of 80 miles mon - fri to commute to his place of work ( he's in IT so has to travel out to fix customer problems in addition). He has a company car for work.
It's just come to light that the last accountant was fiddling the books to the tune of thousands so hes gone. The new one has discovered that my oh should have been paying his own company car tax and could have to pay HMRC 8k in backdated tax. He's shick

OP posts:
RainbowPastel · 04/07/2017 09:06

Not sure what the ouch was for it was a genuine question. Whether he paid it when he should have or not he still owes it. Why should he not have to pay it?

needastrongone · 04/07/2017 09:08

Is the car his that he claims the mileage for? In that event, he doesn't owe tax.

It's a legal requirement that his employer gives him an annual P11d. Unless of course he receives no benefits in kind. Then of course not.

needastrongone · 04/07/2017 09:11

For example

I have a car that was paid for by the company. It's declare on my P11d and I pay a huge whack of tax via PAYE. My tax code is reduced therefore. Service costs and repairs are covered by the company.

DH has a car that we own and pay. His company mileage is declared once a month and he claims that part back. We pay all costs for this car.

It's an important distinction.

Original poster
mummyrabbitpeppapig · 04/07/2017 09:13

LIZS - he is paranoid about doing everything properly. Has ASD so has sleepless nights about anything untoward. He would NEVER purposely avoid anything. If he did he would be a nervous wreck. As he is now. This is why I posted.
Thanks to all who have given advice. Appreciate it.

OP posts:
MsMarvel · 04/07/2017 09:14

He should have had a cope of his P11d. Its like a p60 , you kegally need to have a copy of it to verify details etc. Its nothing to do with who fills jt out.

I have a company car but they pay the tax, insurance etc. I have a copy of my p11d that states this , values it as payment in kind and I get taxed on it. I think anyway haha

needastrongone · 04/07/2017 09:14

Can you tell us the exact circumstance of the car OP, then we can help!

Original poster
mummyrabbitpeppapig · 04/07/2017 09:19

Needastrongone

I'll tell you

OP posts:
Original poster
mummyrabbitpeppapig · 04/07/2017 09:22

Posted too soon ( fat fingers )..
What I do know. The company owns the car. He's had a p60 but never a p11d. He claims his work mileage back. He pays for the service / mot at a local garage ( as the one the other use is next to the office which would be an 80 odd round trip for oh ) everyone else life's local ish. What else do you need to know

OP posts:
Original poster
mummyrabbitpeppapig · 04/07/2017 09:24

Think he's been deliberately been misinformed by the previous accountant about the p11d.

OP posts:
needastrongone · 04/07/2017 09:32

Is the car available for his private use? Mine sits on my drive and I use it personally for everything iyswim? So it's 'my' car in that regard. And I pay the tax for that benefit. All related costs for the car can be reclaimed. I can reclaim company mileage but not personal. Although, you can do this too and pay the taxable benefit.

We have a guy at work that uses one of our vans. He goes to and from work and nothing else other than work trips. He doesn't need to pay tax on this. If he chose to use it personally, he would have to declare to HMRC.

Does that help?

VeryButchyRestingFace · 04/07/2017 09:35

Has the accountant told your husband to make a voluntary disclosure to HMRC?

I know someone who did this and was hit with a bill for £40k (not in relation to a car).

Think they're suing their former accountant now.

Original poster
mummyrabbitpeppapig · 04/07/2017 09:35

Thanks needastrongone yes, his is the same scenario as yours. I think he's been deliberately mislead tbh. I've told him we'll ring HMRC and explain. Thanks so much!

OP posts:
Original poster
mummyrabbitpeppapig · 04/07/2017 09:36

The former accountant has disappeared off the face of the earth I think!

OP posts:
BMW6 · 04/07/2017 09:42

Even if he was mislead by accountant he has still had the financial benefit of using a company car for private use, so the tax bill will still be payable.
It's only the private use that gives rise to the tax charge. Even if he only used the car to get to and from work.

I am surprised he didn't t know this - ime everyone who has a company car is endlessly whingeing about the amount of tax they have to pay!

needastrongone · 04/07/2017 09:42

Yes, then definitely phone the HMRC. You won't be able to speak to them on his behalf as they have very strict rules and prior written permission would need to be given. So he will have to do it. I would hope he claimed the cost of car expenses though, it's an asset owned by the company.

HotelEuphoria · 04/07/2017 09:46

How much does her claim per mile in mileage? I find it unusual that he pays for the servicing and MOT.

When is a company car not a company car?

DS has a similar arrangement to this, in that he has a company car, can claim mileage for business miles (at the reduced rate). The company pays tax/insurance but he pays for tyres and servicing, however it is classed as an "equity car" and after four years he can buy the car from the company for £10 but ahs to pay tax on the book value of the car and his purchase price. He does get a P11D though and does pay tax as a benefit but can offset the maintenance against his tax. His is a perk of the job rather than a business needs car.

DH has a company car, he also claims business mileage at the reduced rate but all his costs including maintenance are covered. He hands the car back every three years. He gets a P11D. He also used to have a fuel card which he could use for all fuel including personal, however he paid an additional (extortionate) amount of extra tax, also listed on his P11D, for the privilege. Financially it was cheaper to pay for personal fuel.

I use my own car very occasionally for meetings at work away from my nominated regular base. I claim the higher mileage rate for this to cover wear and tear on my car or travel on public transport and claim the cost back. I don't get a P11D.

Your DPs situation sounds most odd.

LIZS · 04/07/2017 09:52

Why can't the car be serviced while he is at the office for the day? Is it old enough to need an mot?

Greyponcho · 04/07/2017 10:01

Yup - he has to pay tax for the privilege of using a car that someone else has forked out for/insures etc.
I actually think the tax for a basic model car is pretty darn good value tbh

Original poster
mummyrabbitpeppapig · 04/07/2017 10:05

He has to pay the insurance. He claims back service / mot / tyres etc. It's just had its first mot.

OP posts:
needastrongone · 04/07/2017 10:07

He has to pay insurance? It's not under the fleet policy? Or does he have to pay a proportion of the cost of the fleet cover?

Original poster
mummyrabbitpeppapig · 04/07/2017 10:15

There's only 4 cars so not cost effective for fleet cover. He's just today me that he pays for insurance then the employer pays him back

OP posts:
SwedishEdith · 04/07/2017 10:23

Misplaced reliance on a 3rd party is not usually a reasonable excuse.

Hereward1332 · 04/07/2017 10:43

Does he submit a self-assessment tax return? Is he a higher rate tax payer - this would mean he should have been filing a return. The Self Assessment Employment section is pretty clear that benefits have to be declared.

Original poster
mummyrabbitpeppapig · 04/07/2017 11:17

Not as far as I'm aware - do you have to do one if you are employed?

OP posts:
VeryButchyRestingFace · 04/07/2017 11:18

Not as far as I'm aware - do you have to do one if you are employed?

Er, yes. Grin

But my accountant does mine for me, he just gets me to okay it and sign at the bottom.