HMRC lets employees down on car tax codes
In his latest letter to stakeholders, HMRC’s David Ellis has admitted that P46(car) forms were not processed from April of this year due to the ongoing problems with the National Insurance & PAYE Service system (NPS) and the need to correct annual codes. A number of taxpayers had queried with HMRC why their code had not been amended once their employer had informed HMRC that they had been given, or had a car removed, since the start of this tax year.
HMRC have now confirmed that the backlog of forms has been cleared and new codes should be forthcoming. Remember that changes of car cannot be reported on P46(car) for this tax year, the taxpayer must make contact directly with HMRC to report a change of car and initiate any code review. Changes of car will not be reported by employers until P11Ds are submitted in July 2011. The validation will be changed back for the 2011/12 tax year so that employers can once again report new, removed and changed cars.
Kate Upcraft
Payroll writer and lecturer
ISIS Support Services Ltd
kateupcraft@btconnect.com
