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Why are Electric Cars creating 37% BIK charge

Using HMRC PAYE online software for 2020/21 P11Ds leading to incorrect 21/22 Electric Car BIKs

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I used HMRC' own PAYE online software to submit the company's 2020/21 P11Ds and disclosed 0 at the section headed 'Approved CO2 emissions figure for cars registered on or after 1 Janaury 2019'.

However, affected employees are now receiving 2021/22 tax codes showing a 37% BIK charge rather than the correct 1%.

Several employees have called HMRC to query this and have been advised there was a mistake on their P11D which means the forms must be resubmitted.

Has anyone else encountered this problem please and if so what remedial action have you taken.

Alternatively, if you believe the entry I made was in fact incorrect then please advise what the disclosure should have been.

Thanks.

 

 

Replies (6)

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By rmillaree
22nd Jul 2021 17:12

This sounds ominous - suspect hmrc have defaulted to a does not compute situation somehow - and have defaulted to the maximum rate chargeable situation. Ringing the empoyers helpline to discuss may get this issue resolved (if you are lucky)

ps good luck you may need it to get sense out of hmrc
May be useful if you post your answer i suspect you may not be alone here if the hmrc gremlins are at play again.

One thing i will ask is are you sure you included the correct fuel type? - not that any fuel type should return 37% with zero emmissions.

Knowing hmrc they probably cant cope with 0 as a total in one certain box :)

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By tracyannw
22nd Jul 2021 20:25

We have had the same problem when I called HMRC they agreed that their system was in the wrong and they corrected and re-issued the correct code. When I was chatting with the agent (this was a good few months ago as we were early with the p11d's) he said I was the first of no doubt many queries they would have on it. Short being I believe it is a known issue at their end.

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By cyoung
23rd Jul 2021 10:23

Unbelievable that this is still happening. We have had this problem for years, to the extent that when I send P11ds to employees with electric cars I automatically include a paragraph telling them their tax code will be wrong and giving them the number to call along with the details they will need.

Absolutely hopeless.

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By STEVEGLOVER33
26th Jul 2021 09:20

Thank you rmillaree, tracyannw and cyoung for your responses as it gives me confidence there is nothing I could have done to avoid the situation.

As annoying as it is, I could (just about) accept the need to correct the code over the phone except the Revenue are insisting on resubmitted P11Ds, which incidentally I will not be sending.

I may take this up with the online helpdesk as it's a known problem.

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By STEVEGLOVER33
27th Jul 2021 08:33

By way of an update, I've just spoken to HMRC Online Helpdesk and been told it has to be resolved by The Employer Helpline because it isn't a software issue and 'HMRC would not put out information that didn't work' - That sentence was when I felt compelled to bring the call to an end!

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Replying to STEVEGLOVER33:
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By STEVEGLOVER33
27th Jul 2021 10:30

Further update - Employer Helpline advised I should be sure not to have ticked the box stating 'No approved CO2 figure' as zero is an approved figure. When I pointed out that wasn't a question on HMRC' software a referral to the Technical department of HMRC advised I would need to submit paper P11Ds to the P11D Support Team with a covering letter explaining they were not revisions but replicas of the original submissions. I finally agreed to do so and will in the strongest terms include in the letter the displeasure at unnecessary duplication of effort. I admit they beat me down!!

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