PAYE - Who's responsibility is the tax code?

Just had a bill through for £2500.

About £2000 was because the incorrect tax code was used to deduct PAYE in 2009/2010 and I didn't pay enough (cough) tax.

The other £500 quid is because it would seem that I haven't paid any tax on my benefits in kind. The only benefits in kind I'm aware that I get is my personal fuel paid through a company supplied fuel card (it is my car paid for under a car allowance, not a company car if that makes any difference). I report every three months to my employer what mileage I have done and how much of that was business and how much was personal.

The letter says if the employer is responsible for the shortfall, they may have to pay it not me, and I need to write to them saying why I think the employer is responsible.

So, who is responsible for making sure the Tax code and the amount paid under PAYE is correct, the employer or the employee?

I wouldve thought the accounts dept at your company should be getting this stuff correct not you, it's what they get paid for.

Self employed means self assessment so opposite of that should mean you don't ?

I know when I first started my job just over a year ago my tax code was a bit all over the place. I got told just to hold tight and it would be sorted out in due course. I think in the end it took 6 or so months before everything sorted itself out. I didn't have to do anything and left it to NorthgateArinso to sort out.

I`ve just had one through for £100 - as the company didn`t calculate it correct... DAMN !

Mine was wrong apparently for the last few years, it's sorted now, luckily I had over paid not under paid. From what I gather they send the tax codes to your firm and it is up to them to pay you correctly, however in situations like this they both blame each other, ie, well we sent the correct code, no you didn't, etc

Not to sure but I believe it is the employees responsibility to supply their tax code to the employer. The employer isn't aware of all your personal circumstance and can only apply the tax code you submit to them or is submitted to them by the Inland Revenue on information you supply.
As an employer I can only apply the tax code given to me by the employee.if he/she has had it changed by the Inland Revenue and failed to notify me it is down to me to collect/pay out as instructed by the Inland Revenue.
If on the other hand this is all to do with expenses payments PURELY for business then it is the employers responsibility to clarify that these were legitimate out of pocket expenses incurred by you and tax deductable by them

Tax office send confirmation to the employee, but they also send the tax code to the employer.

[andrewsmith]

Originally Posted by bluefishman

Tax office send confirmation to the employee, but they also send the tax code to the employer.

This.
The payroll get a letter with your tax code. My firm got 3 different codes in 3 months from HMRC.
Ralph check you paperwork for what code HMRC put you on the for the period and check it against what your employer had you on.

As Dicky Ticker says the employer can only apply the tax code that comes from HMRC. If the employer makes a mistake though then the employer is liable for the for the difference in the first instance.

With regards to fuel benefit - I'm not sure how it differs for you using your own car. However, if you had a company car and were given fuel they bite you for it.

They have a basic amount of £18,000 and you pay a % depending on the CO2 emissions of your company car. so say your car was about 165g/km you pay something like 15% benefit on the company car and 15% on the £18,000 for fuel - even if you drive 100 private miles a year.

This is obviously on a company car so I am not sure whether it is any different for you having a private car (and I wouldn't be surprised if it was different)