Confused with Tax Credits

Buttonmoons

Hi, i phoned up tax credits today to do the renewal, thing is they asked if OH had any company benefits (cant remember them asking me that last year?) anyways he has some sort of private health care thing, not sure how it works, but it's something like if you need to go into hospital you can go into the private hospital here, or stay in the NHS one and you can then claim for something like £100 a day,which you are then taxed on.

That's the extent of both of our knowledge about this!

Anyways they said I had to get him to get a PD 11 (??) and then find out how much it's worth, and then that gets added onto the total income for last year. I don't understand why that is to be honest? I could understand if you had CLAIMED on it, but he's never used it, so if it's say valued at 1k, then that gets added onto our yearly income, even though he hasn't used it, and it's not exactly cash in your pocket - how is that fair?

If someone could enlighten me on this I'd be grateful, tax credits gives me a migrane :rotfl:

[Deleted User]

[STRIKE]The question has been asked every year.

If he receives this as a company benefit it is normally on a P11D.

He should declare the amount in the "cash equivalent" box/column.[/STRIKE]

compoff

Any medical related expenses or benefits etc. which appear on your P11D are disregarded for tax credits purposes. So when you ring up again and they ask about these benefits, just say no.

Buttonmoons

If they are disregarded why do they ask for them?

jonesMUFCforever

compoff wrote: »

Any medical related expenses or benefits etc. which appear on your P11D are disregarded for tax credits purposes. So when you ring up again and they ask about these benefits, just say no.

I think this is incorrect but am willing to be corrected if wrong.
I am certainly penalised under this.

[Deleted User]

[STRIKE]Copy the information from your P9D or P11D form that you get from your employer.
If you've had more than one employer, add the figures together.[/STRIKE]

[STRIKE]Goods and assets your employer gave you (for example, gifts of food, fuel, cigarettes or clothes) – shown on P11D section A
or P9D section A(2) in the third or fourth boxes.
Payments made by your employer on your behalf (for example, payment of rent or utility bills) – shown on P11D section B
in the first box numbered 15, or P9D section A(2) in the first, second and fifth boxes.
Cash or non-cash vouchers and credit tokens (for example, a company credit card) – shown on P11D section C,
or P9D section B (add together all the boxes). Don't include the cash equivalent of childcare vouchers if they are used
to pay for registered or approved childcare.
Mileage allowance. Include payments for using your own car – enter the taxable amount shown on P11D section E.
Also include running costs your employer has paid for – shown on P11D section E or included in section N.
If your mileage costs are not paid by your employer, or they only pay a little of it, please phone our Helpline.
Company car – shown on P11D in box 9 of section F.
Car fuel benefit – shown on P11D in box 10 of section F.
Expenses payments made to you or on your behalf – shown on P11D sections J, M or N or P9D section A(1).
You might be able to reduce this amount by claiming a deduction of expenses allowed for certain Income Tax purposes.[/STRIKE]

[STRIKE]Please phone our Helpline[/STRIKE]

System

Buttonmoons wrote: »

If they are disregarded why do they ask for them?

subsoniccoyote is correct it is not disregarded

http://www.hmrc.gov.uk/ebu/p11d-2009.pdf

As you can see medical insurance appears in box J. Even though your husband may not use the medical insurance his company is still paying it for him and that is deemed extra taxable income to him as he doesn't have to buy it himself.

Buttonmoons

Okay thanks, guess he better go ask them for a P11 D then. It won't affect our tax credits at all, as we only get the bare minimum, but I'm worried as I don't think I put that information in last years box? Jesus I don't want another overpayment thing, I already had to pay back 2k for THEIR error.

Sometimes I think it's better just not to claim, and that way you don't have to report to them every little change of circumstance.

I'm worried now.

The guy on the phone said that sometimes the health insurance could be included in your overall pay, and deducted from your tax free allowance - is that right? So then that wouldn't make the income any higher? Or am I way off base here?

compoff

I am a compliance officer with tax credits, trust me, our manual clearly states that medical expenses are disregarded when calculating income for tax credits purposes.

[Deleted User]

[STRIKE]Could you point us to the guidance as TCO helpline guidance states that anything in the 'cash equivalent' boxes are to be included. The only exemption to this would be childcare vouchers.

I am not saying you are wrong but the guidance we have indicates that it should be included.[/STRIKE]

[Deleted User]

[STRIKE]This is a section from the P11D




As far as I can make out, certain health benefits may not need to be declared but whatever is in the 'cash equivalent' box does need to be declared.[/STRIKE]