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taxadvisor.uk, Chartered Certified Accountant
Category: Tax
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I have had a company car tax bill for just under £1000 from

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Hi I have had a company car tax bill for just under £1000 from employment from my previous employer, who when asked whether was paid was told that they do not pay this and that it was my responsibility to pay it separately. This was never mentioned during induction and was not put into print in the company handbook under company car section. I did have a conversation stating that I wanted business use only, as I did this with another employer, and had no problems as they deducted tax at source. Can Iask whether this is legal
JA: Have you discussed this with a manager or HR? Or with a lawyer?
Customer: With the employer
JA: What is your employment status? Are you an employee, freelancer, consultant or contractor? Do you belong to a union?
Customer: Unemployed
JA: Anything else you want the Lawyer to know before I connect you?
Customer: no

Hello and welcome to JustAnswer. I am here to help you. I am reviewing your question and will respond to you shortly.
Many thanks

Thank you for your question.

Payment of personal taxes is the responsibility of the taxpayer. If you had a company car, you should have received a P11d at the end of tax year stating benefits received from employment in tax year. Normally HMRC would reflect the tax on benefits within your tax code.

If you are say that car was for business use only then there is no benefit for personal use and therefore no tax payable.

You need to clarify this with both your previous employer and HMRC.

You may not like the answer, but as a professional, I have to give you the best advice possible based on the facts. I'm sure you would rather know the truth,so that you can find a way forward that doesn’t waste your time and money.

I hope this is helpful and answers your question.

If you need more assistance, please use the reply box below and let me know. It has been my pleasure to assist you with your question.

 

Customer: replied 7 days ago.
is it normally down to employers to deduct it the tax if they supply a company car? they never supplied me with the P11D until I asked for it after receiving the HMRC bill, and I believe that they did not complete a P46 either. They also did not tell me that I should have registered the car with HMRC is this within their rights as responsible employers?

Thank you for your reply.

If your employer did not give you a P11d then technically you did not receive a benefit in kind in your employment.

If they have issued you with one albeit after request from you and it shows you receiving a car as a benefit then there is tax due on that benefit. You could argue that there was supposedly no personal use but you have spend more money on litigation than the tax charge. They should have issued you with a P45 when you ceased employment with the company.

Normally the employee does not have to register the car with HMRC as it is done through P11d. You should declare the benefit when completing your tax return as there is a section within employment that covers benefits.

I hope this is helpful and answers your question.

If there are no more issues, I will appreciate if you would kindly rate my service by selecting the 5 stars at the top of the screen before you leave, to ensure I get credited for it by Just Answer today.

Customer: replied 7 days ago.
Hi Thank you, I have a P45 but there is nothing in the P11 - This was issued on the 14th August, and I requested the P11D after discussing the Bill with HMRC in October

Thank you for your reply.

If there is nothing on P11d then you need to study tax calculation summary to see what is show as income and benefits.

I hope this is helpful and answers your question.

If there are no more issues, I will appreciate if you would kindly rate my service by selecting the 5 stars at the top of the screen before you leave, to ensure I get credited for it by Just Answer today.

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