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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4718
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I'm confused with my tax return. Every year it states that

Customer Question

I'm confused with my tax return. Every year it states that I owe tax even though I pay through PAYE.
My tax code gets adjusted for my company car but then when I add my car benefit calculated from the HMRC website I always have to pay extra tax by £1-2k.
Am I doing something wrong? Should the company car be accounted for in both the tax code and the benefits?
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.
Hello and welcome to the site. Thank you for your question.
Please advise if you get a P60 issued by your employer at the end of each tax year.
Many thanks.
Customer: replied 1 year ago.
Yes I get a P60
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your prompt reply.
Sorry, I meant to ask if you get a P11D form (Expenses and company benefits form)
Your tax code would be adjusted for benefits in kind (company car etc) and you can find that out. If the tax code says 1060L then it is not adjusted for car benefit or any other benefit.
You should not have to calculate car benefit from HMRC website as it would be shown on the P11D issued to you by the company.
If you are not getting a P11D from your employer, you should ask for one.
Your question is -
Am I doing something wrong? Should the company car be accounted for in both the tax code and the benefits?
You may be inputting the wrong car benefit figure if you are caluculating it from HMRC website and your employer had notified a different figure in their submission of benefits in kind paid to you.
Company car should be accounted for in both the tax code and the benefits figure otherwise there is a danger of underpayment of tax year on year.
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 1 year ago.
Yes I'm supposed to get a P11d but it takes forever! Tax code is adjusted to 518L
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your reply.A tax code of 518L could have taken into account adjustment for- underpayment of tax in previous year and be recouped through tax coding system and/or- benefits in kind.You should insist on getting a P11D as it is a legal requirement upon employers to issue one. You should have got one for tax year 2014-15 before 6 Jul 2015.I hope this is helpful.
Customer: replied 1 year ago.
Hi I don't think I have explain my question properly.The PAYE coding notice only has a deduction for company car which gives a reduced tax code so I pay more tax.In my self assessment I am adding in a car as a benefit which increases the amount of tax I owe.This feels like I am being taxed twice on the company vehicle. Is this correct?
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your reply.You are not being taxed twice on the company vehicle. Adjustment made to your tax code enables tax office to collect the correct amount of tax under PAYE. If the adjustment to tax code has not taken the correct value for benefit in kind, then when you file your tax return and state car benefit from P11d information, your true tax payable is calculated and over/under payment of tax is addressed. I hope this is helpful.

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