Fleet News

HMRC quizzed over revised tax codes

Inland Revenue officials have been asked why business drivers are being notified of revised tax codes in the wake of changes in the prices of new cars.

ACFO says alterations based on ‘modified’ P11D figures are causing confusion and is seeking an explanation of the rationale behind changes that are affecting benefit in kind tax liability.

It has asked for a meeting with tax officers after members alerted it to issues relating to incorrect tax codes.

“Three of our members running moderate to large-size fleets have detailed knowledge of this problem within their own operations,” said ACFO director Stewart Whyte. 

“We have no reason whatsoever to believe that this relates to the submission of incorrect P11D details - checks have been made and it has been established that tax offices have used the wrong vehicle prices.”

The P11D price of a vehicle is fixed from the point of it being released by the dealer.

“According to guidance issued by the Revenue, the published price of the manufacturer on the day before the initial registration also applies for BIK on cars bought second or even third-hand and that remains the case until they end up at the crusher,” added Whyte.

Fleet News understands that a 3% price increase by Ford has featured in some of the altered tax codes and that the revisions have so far stemmed from three local tax offices.

“We need to establish if this is a problem affecting people driving Fords, those driving sub-1500cc cars or those who have changed their cars in the past 18 months,” said Whyte. “We want to gauge the extent of this issue and seek clarification from the Revenue.

“Our aim at ACFO is to work to instil the highest level of confidence in all Government systems, but if the departments involved insist on messing things up, we’re faced with a tough job.”

Her Majesty’s Revenue and Customs (HMRC) said it was waiting for further information and could not comment at this stage.

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