Steviekid Posted January 20, 2007 Share Posted January 20, 2007 I had a letter from the Inland Revenue the other day saying that my tax code had been wrong and come April I'll owe them around £1200! It appears that our accountants have buggered up the company car details ie. not told them I had one. I've had a company car since I started the job two and a half years ago and the accountants were definately told. Will I have any comeback on this or will I just have to cough up? I also don't want to do anything that'll make them backdate it further. Link to comment Share on other sites More sharing options...
Ewen Posted January 20, 2007 Share Posted January 20, 2007 I've had similar issues a few times over the years. This is how it panned out for me........ Your tax code is ultimately down to you as far as the Inland Revenue is concerned. I dont mean that you can make your own up:) , but it is up to you to check your coding is correct as far as they are concerned. An accountant is no more than an advisor, working on tax code information they are given by the Inland Revenue, the Inland Revenue provide this coding information to them based on the information YOU need to provide. If your company accountants provide the revenue with that information on your behalf (ie, you are not under self-assessment and your companies accountants do all this for you), you still need to check that information is correct. If that makes sense, you will appreciate that whilst this mistake can be blamed on your companies accountants, the Inland Revenue will simply say that you should have checked that your coding is correct and advised them if it was'nt. Not that easy for most of us, but thats the bottom line. In these situations, (ie a mistake by your accountants, and not a blatant attempt to avoid payment of tax) the Inland Revenue will usually accept back-payment spread over a year or two if you ask them. They will provide you with a new special tax code that effectively takes a bit more out of your wages every month until you are evens. Link to comment Share on other sites More sharing options...
Steviekid Posted January 20, 2007 Author Share Posted January 20, 2007 Cheers for that, I had a feeling that would be the case. Link to comment Share on other sites More sharing options...
Gamer Posted January 20, 2007 Share Posted January 20, 2007 At the very least, I would find another more competent accountant. Link to comment Share on other sites More sharing options...
Steviekid Posted January 20, 2007 Author Share Posted January 20, 2007 At the very least, I would find another more competent accountant. That's not up to me unfortunately! Will moan to my bosses though, not that they'll care! Link to comment Share on other sites More sharing options...
Ewen Posted January 20, 2007 Share Posted January 20, 2007 Cheers for that, I had a feeling that would be the case. Not good is it. Over the last 23 years with the same employer, the worst I've underpaid in a year was around £4k, the best I've overpaid (I got it back) in a year was around a £1000. Two years ago, I had a little victory, as the Inland Revenue had not actually issued the correct code, although all the information I had given them was correct. Not much in it for me other than feeling smug. Dont even get me started on self assessment:d Link to comment Share on other sites More sharing options...
Guest gzaerojon Posted January 20, 2007 Share Posted January 20, 2007 how would i go about checking mine is correct? I've had a company car for about 8 years now but always assumed they sort it all for me Link to comment Share on other sites More sharing options...
Scooter Posted January 20, 2007 Share Posted January 20, 2007 do you get a p11d? and also what is your tax code? Link to comment Share on other sites More sharing options...
Ewen Posted January 20, 2007 Share Posted January 20, 2007 ... Link to comment Share on other sites More sharing options...
Ewen Posted January 20, 2007 Share Posted January 20, 2007 how would i go about checking mine is correct? I've had a company car for about 8 years now but always assumed they sort it all for me Your firms accountants will be able to advise you wether they dealt with any taxable company benefits correctly. Next its back to you to check your coding takes these taxable benefits into account, and wether you are recieving any tax allowances you are entitled to. I started with my Notice of Tax Coding, and asked the firms accountants and the Revenue enough questions to work it all out. If you havent had a recent Notice of Tax Coding from the Inland Revenue and you are worried about it.... Assuming you are PAYE, I'd ask your companies pay-roll dept for your tax reference and tax office, and contact that office to say you want to check your PAYE coding. They will (usually) send out a tax return for you to fill out. Once they have checked this return out, they will advise further. Link to comment Share on other sites More sharing options...
Guest gzaerojon Posted January 20, 2007 Share Posted January 20, 2007 Your firms accountants will be able to advise you wether they dealt with any taxable company benefits correctly. Next its back to you to check your coding takes these taxable benefits into account, and wether you are recieving any tax allowances you are entitled to. I started with my Notice of Tax Coding, and asked the firms accountants and the Revenue enough questions to work it all out. If you havent had a recent Notice of Tax Coding from the Inland Revenue and you are worried about it.... Assuming you are PAYE, I'd ask your companies pay-roll dept for your tax reference and tax office, and contact that office to say you want to check your PAYE coding. They will (usually) send out a tax return for you to fill out. Once they have checked this return out, they will advise further. Thanks for the info Ewen, i think I'll start looking into this on Monday sorry for the Hijack Link to comment Share on other sites More sharing options...
Ewen Posted January 20, 2007 Share Posted January 20, 2007 Thanks for the info Ewen, i think I'll start looking into this on Monday sorry for the Hijack hope you didnt spot the link I posted earlier...it was tax advice for pensioners Link to comment Share on other sites More sharing options...
Guest gzaerojon Posted January 21, 2007 Share Posted January 21, 2007 hope you didnt spot the link I posted earlier...it was tax advice for pensioners lol no i missed that Link to comment Share on other sites More sharing options...
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