I have a client who left a previous employment where they had a company car. Previous employer presumably submitted a P45 online and shortly afterwards client received a new PAYE coding notice, for some reason it assumed that the client still had a company car and medical insurance (even though the letter acknowledged that they were 'between jobs'). In the meantime I submitted a P46 for their new employment in their NewCo assuming that HMRC would then provide a new adjusted PAYE coding notice that excluded any car benefit, as they don't have a company car in the new business.
No new PAYE coding notice has been received.
A few questions:
1. When client left previous employment, should the ex-employer have submitted a P46 Car informing HMRC that the car had been withdrawn?
2. Is it normal for HMRC to assume that the employee takes a company car with them or will have a similar company car at their new job?
3. Whats the best way to rectify this? Moneysoft Payroll does not allow me to submit a P46 Car for a vehicle owned in a previous employment, and the form seems to be designed to be completed by the previous employer, not new employer.
Is it just a case of picking up the phone to HMRC to get this rectified? In the meantime the client will suffer tax deducted as a result of someone else's fault (albeit they will get it refunded one day).