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We used to be on a standard company car scheme and a car was provided and P11d benefit taken. The car provider was an associated company.
However now the cost of the lease is deducted from my gross salary by my employer. As no tax has been paid on this monthly amount then a P11d benefit is applied to compensate for this.
The cost of the car is directly linked to the deal I have negotiated through the preferred supplier.
I dont have to take the car I can have the cash instead.
As stated the revenue are giving conflicting advice to me and my colleagues as some are receiving the mileage allowance and others are not.
When I first rang the revenue I was told I qualified. I submitted form P87 for the past five years. The compliance department have stated I dont qualify and I should complete self assessment.
The revenue are taking a different view on a number of my colleagues as they are aware of the scheme. How do I stand if I challenge their decision? Is there an independent appeals process.
The cost of the lease is not even competitive in the market place.
I am contracted to keep the car for the designated period. I am paying the full cost of the car.
On a letter I had the revenue stated I must meet three criteria:
1. it must be necessary to incur the expense
2. it must be both incurred and paid
3. it must be incurred wholly and exclusively as part of the duties of employment.
I meet all three of those critieria.
I do incur the cost myself as it is deducted from my salary. Currently this is £331pm and I suffer £5201 on P11d. I am incurring the cost as it is deducted from my salary and I am being charged P11d cost.
Is my argument therefore with the revenue or my employer?
thanks for this, albeit not necessarily the answer I wanted.
I have asked for a copy of the lease agreement but nobody can provide this.
The P11d is the car benefit using list price and CO2 emissions.