by Nick Robinson | Mar 21, 2013 | Accounting, Business Tax
Con artists are everywhere and always have been. They don’t just target old ladies though, everyone is a target. This is why you always have to keep your guard up and either investigate things properly or go after expert advice. There have been plenty of smart people who have fallen for cons, so don’t think you’ll always be able to spot one.
One of the latest being peddled to businesses is in relation to the CO2 emissions of company cars. The scam artist offers to sell you carbon credits which you are then meant to be able to use to offset against your emissions. This would mean, if it were possible, to lower the tax you pay. What the scammers tell you is that on your P11D forms, you’ll be able to report a reduced emissions figure (because of the carbon credits). This would lead to lower National Insurance payments on your cars and your employees will also see lower taxes.
This is all a load of rubbish in the end for one simple reason. A vehicle’s CO2 levels are set when it’s actually made. This cannot then be changed for the sake of tax. Therefore, when you come to work your tax benefits in regards to the car, you must use the exact same emission level as recorded on the vehicle’s registration documents.
If you were to submit your P11D forms with reduced CO2 emissions details, then HMRC will be right back after you for the correct money meaning wasted time and lost cash to the con artists. It can be easy to fall for these tricks, especially so when you’re stressed about other things and suddenly you’re being offered a way to save some extra cash. Just remember to be sceptical and wary, especially if it’s for a scheme you’d never heard of before.