BIK query

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ahmedt01
ahmedt01 Registered Posts: 11 New contributor 🐸
A family member has been lumbered with a £7k tax bill recently. He is employed and works for a High Street bank, (no other income except for his salary, with Tax being deducted through PAYE.) The tax bill relates to a mortgage that he has from his employer at a preferential rate. They have backdated the arrears to 2007 'ish, i havent seen the papers/letters that he has received. They have also caluclated the arrears based on interest rates that are in excess of the current rates.

Apparently, at the time his employer had informed HMRC of his circumstances but due to some errors on their part, HMRC missed the BIK. They are now knocking on his door for £7k, i am assumming this includes accrued interest charges too. My question is, has anyone dealt with a query similar to this. What course of action would be advisable for him to follow. Can he challenge the tax bill. Any help and advice would be gratefully received. Many thanks for your time.

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  • Monsoon
    Monsoon Registered Posts: 4,071 Beyond epic contributor 🧙‍♂️
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    Has this been calculated as part of the P800 assessment exercise that has recently been carried out?

    See if ESC A19 applies. If HMRC had the information in their possession but failed to act on it, then this concession should be worth a shot.

    See here for how:
    http://www.cheapaccounting.co.uk/blog/?p=1436
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