Company car drivers 'should ensure they are enjoying tax benefits'
Posted by Michellee Johnson
Company car drivers are affected by a government mistake which may be affecting the amount of tax they pay, according to the Daily Mail.
Her Majesty's Revenue and Customs (HMRC) has admitted it has given out incorrect tax codes to a sizeable proportion of the population - and some businesses which have signed a car leasing contract to provide staff with a vehicle are included.
In some cases, the newspaper states, information on the HMRC database is up to two or three years out of date.
This has created two problems which may be affecting company car users - paying a basic level of tax on all income, meaning the tax-free allowance is not enjoyed and paying 40% tax on more income than is necessary.
Everybody - including those benefitting from car leasing schemes - is advised to check their tax code and whether they are paying the right amount.
The Telegraph recently suggested that the HMRC computer error could lead to thousands of people paying £100 a month too much tax next year.
