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  • FIRST POST
    • mishelly
    • By mishelly 18th Apr 17, 7:40 PM
    • 118Posts
    • 77Thanks
    mishelly
    Train season ticket and tax
    • #1
    • 18th Apr 17, 7:40 PM
    Train season ticket and tax 18th Apr 17 at 7:40 PM
    Hello,

    I'm hoping someone can help me to understand the tax on my train travel season ticket. I really cant get my head round it.

    So, I have purchased an annual ticket through my employer at a cost of £2700. My employer pays £2000 of this for me (as a benefit) and the rest I pay as a loan over the next 12 months.

    The whole lot is added to my salary on my next payday so I get additional tax / NI / student loan contributions which totals a whopping £800 this month
    The £2000 also gets added to my P11D as a benefit in kind which then reduces my tax code for the year. I cant seem to figure out why I get taxed twice on this - once within my payslip and again within my tax code. Is this just the way it is or is this incorrect?

    Thank you
    One day, i will be a genius.
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Page 1
    • EdSwippet
    • By EdSwippet 20th Apr 17, 11:25 AM
    • 424 Posts
    • 386 Thanks
    EdSwippet
    • #2
    • 20th Apr 17, 11:25 AM
    • #2
    • 20th Apr 17, 11:25 AM
    Although it feels -- and looks -- like it's being taxed twice over, it isn't. Well, not unless your employer's payroll department is clueless enough to double-report your benefits in kind on both a P60 and a P11D.

    This brief conversation explains how it all comes together. The tl;dr version is that that your tax code is a control on how much tax your employer withholds for HMRC, but not a statement of how much tax you actually owe. The two get reconciled later, through a self-assessment return and/or tax code adjustment for next tax year.
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