P11D tax return I think i'm being done.

[seekingsanity]

DH has a company vehicle and has a P11d to adjust his tax code but as we rent out a house we both have to complete tax returns.

He is taxed properly by his employer and should only have to pay 20% of the profit on the rental house (calculated with the tax return). We always have to pay more - several hundred pounds more. I feel like we get the extra tax taken every month through the tax code and then because of the tax code have to pay again with the tax return.

Am I just thick or is their a flaw in this system?

The tax for the car is taken by employer in PAYE. You pay the tax on the property rental is paid once you have completed the tax return.

I assume he is well clear of 40% tax band. So if after taking mortgage interest and wear and tear allowance of income from property you clear for example £1000 you will have to pay £200.

Check his tax code against the p11d, if the adjustment for the car doesn't equal the benefit on the p11d that's part of the problem.
Are you basic rate (20%) tax payers? If not then that's part of the problem.

Your tax returns wil show all your income and tax paid, it shouldn't be hard to follow through where the issue is.

PM me if you want.