I changed jobs in 2015 and my new job came with a company car. I am on a PAYE basis so all tax owed is calculated and taken at source after taking into account the taxable benefits I receive. That year my employer failed to notify HMRC about the car and the specific details of that car (They had all relevant paperwork, I didn’t) As far as I was concerned I was under the belief that they had done so and had reasonable belief that my PAYE tax coding was correct and the amount I was paying was too. They hadn’t informed HMRC until nearly a year later when A P11D was submitted. This put me immediately into tax arrears with HMRC. They have continued to make systematic mistakes with my tax through PAYE, this time through Medical Insurance which was incorrect in my P11D – they had put the incorrect amount in which was £1,900.00 lower than it should have been. I have had an appeal through ESC A19 rejected as I feel all these errors lay squarely at the feel of my employer. I am looking for advice.
When you changed jobs you were aware that you had a company car which incurs a benefit in kind tax charge. There are two ways that an employer can tell HMRC that there is a benefit in kind; 1) via an annual P11D produced before 6 July following the end of the tax year or 2) from April 2016 they can use the payrolling method which means that your monthly pay is adjust. As this method was only introduced in 2016 and you had your car before that, at least for one year the P11D method would apply.
In your question you say that your employer told HMRC via the P11D. So it sounds like your employer hasn’t done anything wrong.
If you feel that your employer has made other mistakes then you will need to talk with them. In some changes you could argue that HMRC should collect the tax due from your employer but I think you have a weak argument as you knew about the benefits in kind, so should have expected some charge. It is up to you to check what the P11D says and discuss any errors with your employer at the time.
Advice given is for illustration purposes only and should not be relied upon for your tax planning or tax affairs. We recommend that you seek the advice of a suitably qualified accountant before making any tax planning decisions.