Could someone help me with a slightly complicated employment expense situation.
New client has not claimed the difference between 45p/25p and the re-imbusred amount from his employer for last 4 years.
There are 2 issues. The ownership of the car is quite complicated. He works for a major car manufacturer and he changes his car regularly buying new cars from the company using an interest free loan from the car company to pay for the car. His P11Ds for the last 4 years shows the interest due on the loans for each purchase as a benefit in kind in Box H of the P11D.
In 14/15 and 15/16 the car company paid the insurance and road tax on the car for him (which was taxed on his P11D). In 16/17 and 17/18 the company paid the insurance and road tax again BUT the employee re-imbursed the company for these 2 items so no BinK.
The second issue is the reclaim for mileage. Assuming he has a claim for the difference between the 45p/25p and the re-imbursement I understand he can go back 4 years. The problem is that in some years the claim is bigger than 2,500 and he hasn't registered for self assessment.
14/15 30,000 miles. Claim 9,500 less 6,000 re-imbursed = 3,500
15/16 7,000 miles. Claim 3,150 less 1,400 re-imbursed = 1,750
16/17 20,000 miles. Claim 7,000 less 4,000 re-imbursed = 3,000
To claim for the 14/15 and 16/17 years which are greater than 2,500 I believe he has to register for self assessment. But if he registers for self assessment from 14/15 I worry he will incur fines for late filing?
Any ideas how one should proceed?