Staff Mortgage - Still a BIK once made redundant?

MortgageMonkey_2

I have recently been made redundant from RBS and continue to have a staff mortgage with them - the terms of the mortgage say that I can retain the rate until it expires (April 2010) even though I am no longer an employee.

Whilst in employment the mortgage interest saving appeared on my P11D as a BIK in the normal way. Will I still have to pay tax on the mortgage saving for the period where I am no longer an employee of RBS?

Any guidance on this matter much appreciated.

Thanks

opinions4u

Once you cease to be an employee, the benefit in kind also stops - regardless of the rate.

Any period of gardening leave (while you are still employed by the company but not actually working) will be considered as BIK.

Kavanne

haha, do you mean garden leave!?!?

they don't force you to do gardening

Sorry I am not more helpful

Mrs_Bumble

Also referred to as 'gardening leave'

http://en.wikipedia.org/wiki/Garden_leave

Not sure if this link will help you MortgageMonkey I nodded off trying to read through it lol!

http://www.hmrc.gov.uk/paye/exb/overview/basics.htm

Comyface

Kavanne wrote: »

haha, do you mean garden leave!?!?

they don't force you to do gardening

Sorry I am not more helpful

I've always called it 'gardening leave'! And had images of people always having to do gardening whilst on it! lol.:rolleyes:

MortgageMonkey_2

Thanks all for your helpful posts (and I have no garden!)

oli_ro

MortgageMonkey wrote: »

I have recently been made redundant from RBS and continue to have a staff mortgage with them - the terms of the mortgage say that I can retain the rate until it expires (April 2010) even though I am no longer an employee.

Whilst in employment the mortgage interest saving appeared on my P11D as a BIK in the normal way. Will I still have to pay tax on the mortgage saving for the period where I am no longer an employee of RBS?

Any guidance on this matter much appreciated.

Thanks

MortgageMonkey, I work for RBS as well, sorry to hear that you have been made redundant. I hope you'll get a new job soon.

I hope I am not hijacking your thread, but doea anyone what happens if you get a new job with regards to the Benefits in Kind ?

opinions4u

Tax on benefits in kind is only due on benefits provided to you by an employer.

If you no longer work for them, it ceases to be a benefit in kind.