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Where Taxpayers and Advisers Meet

Patrolling BIK

Lisa9982
Posts: 3
Joined: Thu Nov 24, 2016 8:52 pm

Patrolling BIK

Postby Lisa9982 » Sun Nov 27, 2016 12:15 pm

My boyfriends comoany have moved over to the above from April 2016. Therefore, since April he's been paid his company car yearly sum monthly which is being taxed from his salary. He's received a letter from HMRC (I think this stems from an investigation into 2015/16 tax year where too little tax has been paid due to his employer not declaring the correct company car amount). They've advised that his current tax code (1100L) should be something else (basically taken his car benefit off the £11000 tax free allowance) and have changed his tax code.

I assume this is not right as he's been paying tax on his car benefit since the start of the year anyway as they've been paying his car benefit monthly. Surely HMRC should be aware his company are doing this?

AmanSood
Posts: 215
Joined: Mon Jan 09, 2017 4:12 pm

Re: Patrolling BIK

Postby AmanSood » Mon Jan 09, 2017 5:50 pm

In order to payroll benefits, the Company needs to register with HMRC online before the start of the tax year. So HMRC will be aware that the Company are payrolling benefits. The tax code should most likely be corrected from the next tax year as for this tax year, the tax being paid on the company car relates to the prior tax year.
Advising on UK employment, expatriate and personal taxes
aman.sood@e-taxconsulting.com.
+44 (0) 207 846 0155


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