How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 5059
Type Your Tax Question Here...
bigduckontax is online now

Quick question. Due to issues with my companies (ex) Finance

This answer was rated:

Hi,Quick question. Due to issues with my companies (ex) Finance Director, I have been issued with a tax bill for just under £5.5k due to issues with the submission of my P11D and P60. This is the 3rd year in a row that this has happened previously receiving tax bills of £2.5k and £1.9k.I'm a PAYE employee, having been with the company for nearly 7 years.Do i have any recourse to go to my employer for them to pay this bill due to the ongoing problems arising from their own finance department? Or at least is there any precedence for them to provide a tax free loan to cover the amount?Your assistance very much appreciated.RegardsEd

Hello Ed, I am one of the experts on Just answer and pleased to be able to help you with your question.

Is the P11D being issued by tour employer correct? Are you indeed receiving benefits in kind?

Customer: replied 3 months ago.
I received a company car with fuel card for personnel use, and medical insurance. Apparently only the medical was cover was included for the tax year which lead to some of the bill, and the rest from an issue on my P60.From accountant - I have prepared your 2017 self assessment tax return form. I have also checked your tax code that was being used for 2016/17. This did not include any adjustment for a company car which you did have throughout 2016/17. This is due to the incorrect submission of P11ds by ************ (Ex FD). As a result of this you have a fairly hefty tax payment to make by 31st January 2018.
Your return includes P60 salary income from Reds of £116972.62 and total benefits in kind of £9357. As your income for 2016/17 exceeded £122000 you should not have received any personal allowance. However HMRC had allocated £9050 of allowance through your tax code for 2016/17. This, together with the car as above has led to an underpayment of tax of £5340.60. This should be paid by 31st January 2018.

Unfortunately, your accountant is correct.

You should approach your tax office to arrange for a correct tax code to be issued.

You will have to take up the incorrect P11D with your employer. If you are a member of a Trade Union they may have more clout than you personally.

I am so sorry to have to rain on your parade.

You might be better off not having a company car, buying your own and getting paid 45p per mile (25p after 10000 miles) from your employer. Such mileage payments are outside the scope of UK taxation.

Customer: replied 3 months ago.
Hi thanks for the messages, and understand the implications of company car etc - it's relatively tax efficient being a hybrid.My main aim of the request was to see if I had any recourse to go back to my employer to request a loan to cover the payment and / or to pass on some of the responsibility for the under payment due to this happening 3 years in a row and the issue with the P60.

It appears that your employer has a rather limited understanding of its tax responsibilities. That is why I suggested a Trade Union to take up the matter.

You could ask them for a loan, but if no interest were charged that would be another benefit in kind.

Customer: replied 3 months ago.
Not a member of a trade union so think that's out. I'll discuss with the company and see where we get to, but a pretty nasty surprise.

I fear not very far! Remember that you have to earn it to pay tax on it, but it doesn't help where HMRC allow a Personal Allowance to which you are no longer entitled.

Please be so kind as to rate me before you leave the Just Answer site.

bigduckontax and other Tax Specialists are ready to help you

Thank you for your support.