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Sam
Sam, Accountant
Category: Tax
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I WAS MADE REDUNDANT BY MY EMPLOYER IN JULY LAST YEAR AND

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HI,I WAS MADE REDUNDANT BY MY EMPLOYER IN JULY LAST YEAR AND RETIRED OCT 14 UPON REACHING MY 65th BIRTHDAY.THERE HAS BEEN NO SUITABLE JOBS AVAILABLE SINCE SO I AM NOW A PENSIONER.I HAVE HAD SEVERAL DEMANDS FROM HMRC GLASGOW FOR DIFFERENT AMOUNTS AROUND £2OOO.THE REASON FOR THIS IS AS A SERVICE ENGINEER I HAD A COMPANY VAN AND HAD TO TAKE HOME DUE TO NATURE OF THE JOB.I HAD VERY LITTLE PERSONAL USE FOR THIS VAN ( A COUPLE OF TRIPS TO THE SHOPS OVER THE WEEKEND),I HAVE FOUND OUT SINCE THAT I HAVE BEEN LIABLE TO A £3000 VAN BENIFIT TAX EVEN THOUGH I PAID 20p PER MILE PRIVATE MILEAGE.I WOULD NOT HAVE USED THE VAN AT ALL HAD I KNOWN.MY COPIES OF MY EMPLOYERS P11D ARE BLANK AND NO GUIDELINE, NO VAN DETAILS OR PRIVATE MILEAGE.SHOULD THE HMRC OR MY EX EMPLOYER HAVE HAVE INFORMED ME OF THIS CHANGE IN VAN TAX.I HAVE SENT A COMPLETE REPORT TO HMRC AND RECEIVED NO ANSWERS EXCEPT THAT THEY HAVE SET UP A SELF ASSESSMENT RECORD FOR ME?.
Submitted: 2 years ago.
Category: Tax
Expert:  Sam replied 2 years ago.
Hi
Thanks for your question - I am Sam and I am one of the UK tax experts here on Just Answer )and I worked for HMRC for 26 years)
I am afraid that any private use - or just availability to use for private reason will give rise to a company van charge, and whilst your employers should have advised you the charge that would arise this sadly will not preclude you from the charge arising.
And furthermore the payment of 20p a mile made by you to the employer would have only been considered against the fuel benefit charge arising (or lessen the charge) and not the fuel benefit charge itself.
HMRC have advised you of the van charge (by actioning the P11ds that they have been provided with) and as you have received demands for several amounts this suggests several years worth of information - so it may be that the employer failed to advise HMRC in a timely fashion, and it may well be on this basis that you have recourse to challenge some or all of the taxed asked of you.
So can you advise what amounts are being asked for and which tax years in question,
Also you advise you were provided with P11ds from your employer each time and theyw ere blank - so this is the employer fault but did you ever alert HMRC to the fact you had this company van.
Please also note there has ALWAYS been a charge for company vans - it used to be a smaller charge £500 or £350 depending on the age of the van up until 05/04/2005) then they (HMRC) brought it in line with company car charges to make it a level playing field for all vehicle users
S this is not a new change which you seemed to think.
Let me know how many tax years are involved and amounts for each and I can advise further
Thanks
Sam
Customer: replied 2 years ago.

HI, I WAS TOLD BY HMRC THE SAME THING IE AVAILABLITY OF THE VAN.BUT THE GOV P11D GUIDELINES CLEARLY STATE THAT IF THE VAN IS USED FOR WORK ONLY AND NOT FOR PRIVATE USE, THERE IS NO TAX TO PAY.THERE ARE A LOT OF PEOPLE LIKE ME THAT DID NOT KNOW OF THE RISE IN VAN TAX.WHO HAVE TO TAKE THEIR VAN HOME BUT DO NOT USE IT FOR PRIVATE USE AND PAYING £3000 A YEAR.PLEASE REFER TO ATTACHMENTS,THANK YOU.ALAN.

Customer: replied 2 years ago.

Hi Sam, Please note my email address is *****@******.***. The system has it down to another user for some reason, Thanks Alan.

Expert:  Sam replied 2 years ago.
Hi Alan
Thanks for your response, I am afraid that this will be sent to your email address (whichever one you registered with as we are unable to communicate directly with customer unless through additional services - then we can give out our contact telephone numbers)
I am afraid unless the employer has specified that there is no private use, and has carried out appropriate checks (such as mileage radings to quantify there is only business use) then the fact you may not use it privately has no bearing. Will your ex employer be able to endorse this factor?
You advise you did in fact use it privately (be it only a couple of trips over weekends)
The gov.uk site offers only basic tax advise - its simplified the tax position as the HMRC site was said to be too technical but the actual ruling of whether there is deemed to be private use is as I advise here.
Also you have to remember in many instances the trip to and from work is also deemed to be private - and its usually only those that collect other colleagues, and/or are permitted NO private usage and this is insured as such and mileage records kept by the employer to prove this - and they do not have any work base, but travel all over OR collect the van from a base and then set out for the day etc etc
You do not appear to fit into any of these categories, but do advise if this is not so.
Thanks
Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13809
Experience: 26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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