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P11D - Cars under 50g/km HMRC Error?

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I have discovered that the P11D's we have submitted as a firm for clients who have provided cars where the CO2 is under 50g/km have been incorrectly calculated on the individuals DTA and tax codes. The approved zero mileage figure is shown correctly on our software and shown on the P11D provided to the client but is not being picked up by HMRC. HMRC are instead using the CO2 figure as the approved zero mileage figure and therefore figures for the benefit on the DTA and tax codes are less than the amount reported on the P11D. The class 1A NIC figure at HMRC is correct, presumably as this is taken from the P11D(b). 

Has anyone else had this issue? We are stuck at the moment between HMRC not being able to investigate further and waiting to hear from our software provider. We would be interested to see if this is a wider issue or if it just us!

The software we use is P11D Enterprise supplied by BDO.

Thank you

 

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By Hugo Fair
28th Jul 2021 14:05

I'm having difficulty working out exactly what you're describing ... but is this related to the post from last week at https://www.accountingweb.co.uk/any-answers/why-are-electric-cars-creati... ?

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By moosethemizfit
28th Jul 2021 17:06

Thank you Hugo, an example may explain my issue slightly more clearly!

P11D as submitted
List Price - £66,700, CO2 49g/km, registered pre 06/04/20, approved non emissions mileage 25 miles. Therefore benefit @14% = £9,338

HMRC figure on the DTA after P11D processed = £5,336
Calculated as follows:
List Price - £66,700, CO2 49g/km, registered pre 06/04/20, approved non emissions mileage figure 49 miles, Therefore benefit incorrect 8% = £5,336.

The knock on from this is a new 21/22 tax code has been issued with the car benefit included by HMRC at the incorrect 8% rate rather than the correct 14% rate.

HMRC adviser stated that no zero emissions mileage figure was on the P11D they received, it is clearly on our submitted version on our software and therefore their system has picked up the CO2 figure and used that as the zero emissions mileage figure!

Therefore we are trying to work out if this has happened to anyone else, using the same software or a different software to see if this is HMRC issue or a software issue.

I have identified around 20 clients this affects so far, so not looking forward trying to get them all corrected!

Thanks in advance

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Replying to moosethemizfit:
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By Hugo Fair
28th Jul 2021 17:39

Thanks for the clarification ... you've obviously identified the problem, but not the culprit!
And based on what you've said that could just as easily either be BDO (failing to correctly submit an entered value) or be HMRC (failing to correctly handle a submitted value) ... so you're caught in the middle until one of them confesses!

BTW, forgive my ignorance but what is a DTA in this context? I know of a PTA and a BTA (as types of online tax accounts), and am aware of DTA being used in cases of double taxation treaties (which is surely not the case here)?

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Replying to Hugo Fair:
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By Wanderer
28th Jul 2021 18:24

Hugo Fair wrote:

BTW, forgive my ignorance but what is a DTA in this context?

I use it in the context of 'Digital Tax Account' - the figures my SA software downloads from HMRC. Dunno if this is correct or not? Gonna be so easy in the future, David Gauke said so:-
https://assets.publishing.service.gov.uk/government/uploads/system/uploa...
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Replying to Wanderer:
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By Hugo Fair
28th Jul 2021 20:56

Aaah, 2015 terminology! HMRC change their acronyms more frequently than Father Christmas visits me - and sometimes even invent new vocabulary (just to keep us on our toes).

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Replying to Wanderer:
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By moosethemizfit
29th Jul 2021 08:43

Yes DTA = Digital Tax Account, the figures that download from HMRC into our Tax software.

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By Paul D Utherone
28th Jul 2021 18:28

I seem to recall seeing a similar query here recently, but cannot find it right now (or maybe I'm going fully mad now)

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By STEVEGLOVER33
01st Sep 2021 16:22

I've had exactly the same issue and we use HMRC' own PAYE Online reporting software (in addition to the wholly Electric problem someone has kindly provided a link to on the earliest reply).

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