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Cannot get HMRC to issue correct Tax Code

What is best way to proceed?

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I correctly filed P46(Car) forms via RTI re replacement of a car, but in the tax code issued, HMRC only recognise the car being withdrawn, not the BIK on the new car.  Spoke to HMRC, and they say they haven't received/actioned details of new car, and cannot discuss anyway as I'm an agent.

So I filed the form again just showing the new car, but they still have not updated his tax code.

Client advised me to manually calculate his correct tax code and use that instead. But I'm conscious of RTI penalties, and prefer HMRC to get it right.

So I'm coming up to the second month of applying the tax code I calculated. 

I've tried to get the employee to speak to them directly, but he doesn't want to.

What is best way to proceed?  Continue using the (correct) tax code I calculated, or use the one issued by HMRC, which will generate him a massive PAYE underpayment during 2017/18?

 

  

Replies (6)

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RLI
By lionofludesch
07th Aug 2017 12:00

Well, that's "dynamic coding" in action.

Very unimpressive so far.

If the client doesn't want to waste a couple of hours on the phone (and I can see why he wouldn't), your best option seems to be a letter of complaint.

Thanks (1)
By SteLacca
07th Aug 2017 12:01

How was the P46(Car) filed, paper or electronically. If paper, why not re-do electronically. Then it won't need someone to process manually. (https://www.gov.uk/government/publications/paye-car-provided-to-employee... if you don't have software to do it).

Thanks (1)
Replying to SteLacca:
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By fellowcraft
07th Aug 2017 12:11

Filed online. First one I filed showed car withdrawn, and vehicle issued. Second one just showed vehicle issued.

They just won't recognise the vehicle issued!!

I've had this on 3 separate clients so far, resolved by employee phoning HMRC. But this guy just won't do it.

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Replying to fellowcraft:
By SteLacca
07th Aug 2017 12:48

Well, if he's aware of the consequences and the tax bill down the road, I'd say you've done all you can, and if he won't do his bit he needs to accept the outcome.

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By Cloudcounter
07th Aug 2017 13:33

Just tell him how much he is underpaying each month and tell him to put that amount in the piggybank. Up to him if he listens or not.

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By catlady
07th Aug 2017 17:50

Get him to go in to his Personal Tax Account and he will be able to update it instantly. I recently had the same trouble with the P46(car) and this sorted it straight away, new code issued the day after.

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