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Sam, Accountant
Category: Tax
Satisfied Customers: 14153
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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My wife has a company car through her employment, for which

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My wife has a company car through her employment, for which she pays a monthly amount from her pay, which should substantially cover most if not all of the leasing costs. Despite this her employer saw fit to ignore all of the payments and instead issue a P11d with full charges applied.
Any clarification on this matter would be extremely helpful.

Hi, Sam here , one of the UK tax Experts here on Just Answer, thank you for your question and I shall reply shortly


Thanks for your patience

What exactly is deducted from your wife's pay - the actual lease hire or an amount towards the lease hire, or is the charge implemented through her tax code (which is then subsequently operated against her pay)

If she pays towards the lease has this not been reflected on the P11d? Have you approached the employer to ask why this has not been considered against the charge arising ?

What does the employer advise ?

I can then advsie further



Customer: replied 1 year ago.
Hi SamThanks for your response, can you confirm the maximum amount deductible from the benefit assessment, ie is it supposed to be equal to all the payments taken from her net pay from April 2015 to March 2016?ThanksRichard

Hi Richard

A lease care is NOT charged by HMRC as the amount of the lease costs but as if it was a company car, so the charge is based on the CO2 emission charges

Then from this any payments made good are deducted but often there is s till a charge arising although many have argued with HMRC that should the lease payments be fully met that there is scope to argue no benefit arises under S114 ITEPA 2003 where no charge should arise but as tey this has not been successful in aguing with HMRC

Link here for the company car calculator

The only way to get around this is if the lease charge was in your wife's name rather than her employers.

But if it is in the employers name then whilst your wife will be given full credit for the amounts paid - this is deducted form the car benefit cgarge wich will mean that the employer still has to submit a P11d for the amounts

Let me know if I can assist further



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