An employee with an existing company car does not have a fuel benefit. Due to change of work location, part way through the tax year, he takes a fuel card with all private mileage paid for by the company.
Wrote to HMRC and they added a pro-rated charge to his tax code. A few days later, a new tax code was issued with a charge for the whole year. On querying it with HMRC they say that there is no reduction for a benefit provided part way through the year. There is a reduction if the card is taken away though.
My employee benefits knowledge is quite rusty now, but surely this cannot be true? To be taxed on a benefit that you did not even have? I have checked the manual but can only see what happens when fuel ceases (and you are allowed to pro-rate it!)
Thanks for any clarification!