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taxadvisor.uk, Chartered Certified Accountant
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Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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Is there any way drivers contributions to their Company car

Customer Question

Is there any way drivers' contributions to their Company car fuel costs can be offset against the private motoring Fuel Scale Charge?
Submitted: 3 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 3 years ago.
Hello and welcome to the site. Thank you for your question.

Does the driver make full contribution for private use?

many thanks
Customer: replied 3 years ago.

Ostensibly, "Yes". typically £50 p.mth.


 


The drivers were paying for all the fuel recorded on private journeys. It was the private journeys that were ostensibly being recorded.


 


But HMRC are not accepting that the (private) mileage records were adequate. ('Should have recorded business journeys, etc..)


 


Assessments being made for P11D non-entries. 4 years = £44,000 - £49,000.


 


Our argument, then is:- "OK - so we want the 'contributions' offset against the Scale Charges. Either your Fuel Scale assessments or the facility to open up the P11Ds since 2008/09".


 


HMRC Tax Inspector says:- "Fuel Scale Charges are all or nothing. Cannot off set contributions."


 


Hopes this gives you the background to our question.


 


 

Expert:  taxadvisor.uk replied 3 years ago.
Tristan, thank you for your reply..

HMRC rules are clear on Car fuel benefit charge. This charge applies if your employer provided you with any fuel for private use of the car.

If you have sufficient evidence to support your case that all the fuel for private use was paid for in full then you have a strong case and you should be able to defend the claim.

More information on car and fuel benefit can be found on HMRC helpsheet hs203 here
http://www.hmrc.gov.uk/helpsheets/hs203.pdf

You should ask for the case to be reviewed by another person not involved with your case. If need be you should appeal for the case to be heard at a tribunal.

More information on how to appeal against an HMRC decision on direct tax can be found here
http://www.hmrc.gov.uk/complaints-appeals/how-to-appeal/direct-tax.htm

I hope this is helpful and answers your question.


If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.


Customer: replied 3 years ago.

Dear Expert


 


Thanks for that. It's what we already believed the situation to be.


 


 


In the evnet of failure to have the private records accepted, can you comment on opening up the last 4 years' P11Ds then to offset the (fuel) contributions against the Car Benefit Scale charges?


 


Tristan Maynard


 


 

Expert:  taxadvisor.uk replied 3 years ago.
Tristan, thank you for your reply.

If the tax office is not satified/or discovers that correct information has not been provided by the tax payer then yes the tax office can go back to earlier returns.

More information on this can be found here
http://www.hmrc.gov.uk/manuals/salfmanual/salf411.htm

I hope this is helpful and answers your question.
Customer: replied 3 years ago.

Dear Expert


 


'Sorry - but I meant can WE go back and have the previous 4 years' P11Ds adjusted?


 


(or IS this what you meant?)


 


Tristan

Expert:  taxadvisor.uk replied 3 years ago.
If the assessments are open for the last four years then yes adjustments can be made for those years.

I hope this is helpful and answers your question.
Expert:  taxadvisor.uk replied 3 years ago.
Tristan, you may find this link helpful... look at "What if it's too late tp amend your return?
http://www.hmrc.gov.uk/sa/correct-repay.htm


Many thanks

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