Van drivers working for companies who operate fleets of vehicles are being encouraged to check they are paying the correct amount of tax, after a poll of fleet companies found 4 in 5 of their drivers had received wrong codes from Her Majesty’s Revenue and Customs (HMRC).
The astounding figure is down to the complicated tax laws that surround vehicles covered by commercial vehicle insurance. Professional fleet service company, Innovation LLP, disclosed to industry magazine Fleet News that thousands of people driving company cars will be paying the wrong amount of tax, and that in most cases the individual will not be paying enough. Although this may sound good to most tax payers, John Messore, a partner at Innovation LLP, said “Tax underpayments are not always good news. It is vital every employee checks their own tax code and if they are not happy with it they should contact HMRC. The error may ‘benefit’ the taxpayer, but will eventually be corrected and that could mean quite a lot of money owed and a worrying time trying to pay it back.”
HMRC say the reason so many taxpayers have the wrong code is because they or their employers give the government department the wrong information and so are issued with the wrong code. They do say however, that everyone is sorted out in the end. Fleet News is now encouraging all its readers to check with HMRC that they are indeed paying the right amount of tax and are launching a campaign aimed at making HMRC look into ways of processing information better and reducing the amount of people working with the wrong tax code.