Client stopped having a company car mid year for which he was making a significant monthly contribution. P11d shows nil benefit after deduction of contribution which is the same as 2011 for a full year. I have questioned it and it is not clear whether the P11d is wrong, the employer deductions continued incorretly and will presumably be repaid or some other explanation. It is a very large employer and unlikely to be sorted for months. I am thinking of submiting the tax return using the P11d we have but white space a note that it has been queried with the employer. There is also the issue of further tax being due if the P11d is correct and I could make an estimate of the amount involved after several assumptions and suggestpayment is made accordingly. Any observations please?
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what sort of contribution is it
capital to the cost of the car or contribution to mileage or a mixture of both and what is the tax difference in these cases - i am not sure from a recent case if there is a straight deduction for revenue contributions unless they are clearly set out.
HMRC are looking at differences between the P11ds and the tax returns so they might well ask anyway and then you can point them to the white space
@aha JC a new style P11d working sheet ?
i havent seen one like that on my software, but thats probably why we use software
wouldnt it be nice simply to type in the reg and let the software do the work
go to it developers
is a contribution to petrol costs deductible for fuel benefit ?
Sort of ...
From WS2 - '.. If the provision of fuel was withdrawn and not reinstated later in the year, enter the date and complete box V, otherwise, go to box W Date the provision of fuel was withdrawn if applicable ..'
But it is probably to do with how one contributes - needs to be a defined period of contribution / non-contribution
They have the concept of 'provding fuel' and 'withdrawing fuel'. A few years ago fuel could be introduced & then withdrawn a number of times - but now not sure; think it is only once. But when it was originally introduced like this on the p11d they got themselves in a dreadful mess and it was totally illogical - subsequently amended to work, although not very well
See -
http://www.hmrc.gov.uk/guidance/480.pdf - chapter 13.3 etc .....
'.. 13.4 The fuel benefit charge is normally the only tax charge in respect of the provision of fuel for private use by an employee (or members of their family or household) in a 'company vehicle'. So the cost of fuel for private motoring reimbursed to the employee or paid on their behalf by the employer (for example, by way of credit card or a voucher) will not produce a tax liability in addition to the fuel benefit charge, unless the amount reimbursed exceeds the cost of that fuel. if the reimbursement is excessive, the 'profit element' will be chargeable to tax in the normal way ..'
White Space
I would submit with a note in the white space, I have done this before where a P11D has been incorrect, but we all know that HMR&C do not read and/or cannot access white space information.