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.
Report argues that the government must change the way it makes tax and budget decisions
Drastically fewer offices for HMRC in the hope to reduce their running costs
Tayabali Tomlin and d&t directors launch £20 a month TaxGo service, aiming to be the 'biggest UK firm' by client numbers
Companies must report on their complex financial structures including offshore accounts and notify HMRC