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Discussion Starter #1
Hi all,
Not sure if anyone else has just had an incorrect tax code through from the HMRC but any advice appreciated.
I have a BMW i3 94ah REx through work so I have car benefit applied to my tax code, tech. spec. for vehicle is 13g/co2 and electric range of over 130miles, p11d of £38,675. BIK last year was 16% or £6188, new info from HMRC for 2020/21 has BIK as 14% or £5414! I was expecting 2%!! Both the old rates published ages ago for 2020/21 has it as 2% and the new rates that will hopefully be ratified in the March budget for 2020/21 also have it as 2%?? The only bracket for 14% is an ev with less than 30miles range.

I have contacted HMRC and I'm waiting for a response. The HMRC online account doesn't give detailed workings of their calculations and it doesn't show which bracket for BIK they think my car should be in, I'm having to base it on the CCT value and P11D list price... Yours in hope ?
 

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is it because of the fuel burning Rex? I thought they designed the new BIK rules to stop the hybrid tax dodge
 

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Not really a dodge in the case of the i3. I wondered if it had been registered wrong when bought.
 

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Discussion Starter #5
Just for clarity this is a snip of the new 2020/21 BIK CCT rates, hopefully to be included as they are in the budget by Sunak on March 11th. The green box shows the percentage rates I was expecting to impact on myself with the i3 rex, but for some reason my BIK CCT for 2020/21 is 14%, the only bracket at 14% is highlighted in red and is for ev's with an electric range of less than 30 miles...the i3 has an electric range over 130 miles.

I have checked the infomation registered with .gov via the 'tax check' and it looks as though everything is in order. Just wanted others peoples view on where the car (i3 rex) sits with regard to BIK CCT.

127976


127977
 

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Delighted to say I’m handing my last company car back on Friday after 3 years of wrangling with our tax taking overlords.....However I’ll be paying company car tax for another year.

Despite the correct details being listed against my online tax record, they informed me in January they’d somehow undercharged me by nearly 2k over the previous 18 months.

This despite my calling and checking it was correct when I got the car, after they made precisely the same error with my previous car.

HMRC are an utter shambles when it comes to BIK tax.
 

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To be fair, HMRC rely on the information submitted by your employer, so check first what they have told them.
 

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To be fair, HMRC rely on the information submitted by your employer, so check first what they have told them.
Yes, they do, but on two occasions HMRC made a mistake and admitted it, just as I said in my post.
 

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The proposed BIK rates have not yet been confirmed by this government and hopefully they will be in the Budget unless the new Chancellor has other ideas...remember a few years back they didn’t drop the 4% diesel supplement when they said they would.
 

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HMRC are an utter shambles when it comes to BIK tax.
HMRC are an utter shambles - full stop!

Having submitted a self assessment tax return for my brother's final months before he died, it took HMRC twelve months to provide a calculation, and then they sent the demand to my brother's former care home instead of to me, so only by chance I got it at all.

Total bunch of Ar--Ho---!

John..
 

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Discussion Starter #14
UPDATE: At the time of posting this thread I had submitted an online request to amend the car benefit. After going through some tick boxes on the HMRC website it asked for what I thought the car benefit should be and so I entered to correct figure, all good I thought, however that was it and there was nothing for me to input information as to how I came to that figure. Two weeks later i've received a letter from HMRC saying 'You have not provided any details of how you arrived at car benefit of £773', and they've attached a P11D form with nothing to record the emission free electric mileage, key for determining the correct BIK CCT rate!

Pointless returning form so I have phoned them to discuss, key points were:
-Car benefit queried with very nice gentlemen who confirmed it as 14% BIK CCT, so I highlighted the NEDC emission free range on the i3 and he needed to put me on hold for a few minutes to discuss with a colleague, he returned and confirmed it would be 2%, tax code amended!
-He confirmed employers were being asked to submit emission free mileage for vehicles as part of salary sacrifice schemes (and for all company car schemes i'm assuming), i asked if that information was part of the P11D as I couldn't see anywhere for that information to be given, he said a form was being sent out to employers!
-He confirmed that lots of changes were about to happen with BIK rates, I agreed, there are indeed.
-I can only assume HMRC are basing car benefit for CO2 emitting EVs for 2020/21 on the maximum rate of 14% until they hear otherwise, i.e. employee contacting HMRC or employer returning this 'form' sent out by HMRC requesting emission free mileage info.
-He mentioned that I could use the online HMRC tax account to amend the car benefit...i didn't scoff too much before suggesting he could use this phone call as feedback that it should include an option for additional information as to how the new amount was determined! :)

Sorted for now!
 
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