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P11D for Electric Car - me or HMRC wrong?!

Submitted P11D's for Electric Cars and employees have received tax code with a 37% BIK charge!!

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I read this article (https://www.accountingweb.co.uk/tax/personal-tax/driving-away-the-p11d-pain) when submitting the P11D's for 2020/21 earlier this month and thought I'd got all issues covered.  It appears I was wrong as I'm now dealing with the fallout for our employees who had electric cars at 6/4/21...

When submitting the P11D's for these employees I entered 0 as the CO2 figure, 0 as the engine size and 0 as the cash equivalent with (eg) £33,785 as the list price.  I calculated Class 1A's accordingly based on 0% BIK.

HMRC's computer has decided these vehicles warrant a 37% BIK rate (rather than 1%) and issued tax codes for  2021/22 for relevant employees accordingly with a £12.5k BIK leading to hideous K codes for most.  We obviosuly can't correct this with HMRC so I've had to ask our employees to phone HMRC to correct this who have been told by HMRC that I've issued the P11D incorrectly / not ticked a box on the P11D / some other reason that doesn't involve admitting any problem their end.

I don't think I've done anything wrong, but have I??

Has anyone else experienced this or has anyone submitted P11D's for electric cars and not got caught out by this?  If so, what did you do right that I've done wrong?!

Replies (4)

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By GW
29th Jul 2021 14:40
Thanks (1)
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By Tax Dragon
29th Jul 2021 14:53

I'm not reading your question. It's first come first served in here in my mind and STEVEGLOVER33 beat you to this one. https://www.accountingweb.co.uk/any-answers/why-are-electric-cars-creati...

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Replying to Tax Dragon:
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By AnonymousFD
29th Jul 2021 15:19

Yep, know that feeling!

Thanks for linking, was exactly the problem I found. Unlike STEVE I can't face sending paper P11D's that show exactly the same information as the ones I submitted just because their systems are so poor they can't handle the 'new fangled' technology of electric cars!

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Replying to Tax Dragon:
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By Hugo Fair
29th Jul 2021 15:21

And another even more recent one ... https://www.accountingweb.co.uk/any-answers/p11d-cars-under-50gkm-hmrc-e... ... not quite the same thing but redolent of HMRC doing odd things with P11D reporting of cars.

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