Coding problems hamper car tax

Coding problems hamper car tax

The Inland Revenue today denied a software problem was the root cause of errors emerging in many of the codes for the soon to be launched company car tax, which will affect up to two million drivers.

From the beginning of the new tax year, company car tax will be based on the levels of CO2 emissions a car produces, but due to a so far unidentified error, many cars have been placed in the wrong category.

John Whiting, PwC tax partner, said: ‘We are finding quite a few coding notices coming out with the old figures, despite the information having been passed to the Revenue. We hope there is no danger of drivers paying the wrong amount of tax, but that is looking a possibility.’

However a Revenue spokeswoman, said: ‘There are some wrong tax codes being sent out. As soon as taxpayers receive their codes they should check them. If there are any problems they should contact us as we can change the codes over the phone. We are aware of individuals who have been given the wrong information and are confident everyone will have the right code by the end of the month.’

Last year, employers and fleet operators feared company car tax bills would be seriously inaccurate as car manufacturers’ details on CO2 emissions differed markedly from figures held by the DVLA.

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