double taxation on employee benefits?

davee_sk

Hi,

In 2008/2009 I ran a tiny business with income less than 2,000 and profit less than 1,000 which I need to do self assesment for.

I also had a full time job and paid all tax and NI to PAYE. This included the pay and benefits like private medical insurance. I believe this has been all taxed during the year, according to pay slips and P60. However, if I put the figures for benefits in the self assesment form, the system will increase the tax owed as I if needed to pay the income tax on the benefits again!

Let's say I put 500 as employee benefit, the tax owed is increased by 100 (20%) - even if my profit from business is 0!

The income from employment on P60 is including the benefits I trust, which could be the reason of double taxation.

I phoned up the HMRC hotline and the advisor kept saying I probably have tax underpayment; from my past experience they are not always right though.

I am also sure that my income was not above the 20% income tax threshold.

How should I fill the self assesment?

This is my first self assesment but time is against unfortunately. I will be very appreciated if anyone could help.

Thanks!
David

zygurat789

The benefit is not included in gross pay on your p60, check with your payslips.
If you are completing a tax return then think of the PAYE you have paid as being on account, the tax return calculation takes all your income and allowances and works out your liability, the tax deducted under PAYE is then deducted to arrive at what you must pay.