Taxed on staff mortgage

ben1con3

Hi

I recently recived notification from the Inland Revenue reducing my personal allowance to 289L. The say this is due to my staff mortgage. Although the mortgage initially was for staff (no fees to set up) it was available to all eligible customers. One ex member of staff fought to keep the same product as it didn't say in the terms and conditions that it would be no longer available to ex staff members and she won.
The Inland Revenue said it's nothing to do with them and to take it up with my employer.
I would like your help with this or if anyone else has come across anything similar. As far as I am aware every member of staff have had their tax code reduced who are currently on it.
Do you think I have a case to complain?

Many thanks

Cathy

nearlyrich

Sounds like a benefit in kind I have to pay tax on my company car because it's a benefit I presumed all benefits were taxable.

ILW

If you get a discount due to your employment, the discount is a taxable benefit.
Is a staff discount shown on any of your mortgage paperwork?

ben1con3

I've looked at the terms and conditions and all its says that if I come off a staff mortgage i will loose my benefit but no where does it say that this is a staff mortgage.
Do I challenge Santander/Abbey or Inland Revenue?
It's not a benefit in kind according to the T&Cs

getmore4less

Staff mortgages are a benifit in kind based on a rate set by HMRC.

Used to be good now not so good.

If rates rise they may get good again.

http://www.hmrc.gov.uk/rates/interest-beneficial.htm

current rate is 4% staff rate lower than this then taxed.

ERICS_MUM

ben1con3 wrote: »

Hi

I recently recived notification from the Inland Revenue reducing my personal allowance to 289L. The say this is due to my staff mortgage. Although the mortgage initially was for staff (no fees to set up) it was available to all eligible customers. One ex member of staff fought to keep the same product as it didn't say in the terms and conditions that it would be no longer available to ex staff members and she won.
The Inland Revenue said it's nothing to do with them and to take it up with my employer.
I would like your help with this or if anyone else has come across anything similar. As far as I am aware every member of staff have had their tax code reduced who are currently on it.
Do you think I have a case to complain?

Many thanks

Cathy

Your employer should have given you a copy of your P 11 D form, which is sent to HMRC showing calculations of any benefits in kind (i.e. staff "perks"). The form is produced as at the end of the tax year.

I suppose the first thing to challenge is whether your mortgage has been included on the form, and why. If it's a standard mortgage product at an interest rate offered to non-staff customers then I'm not sure why it should be taxable.

Good luck - I used to work for a high street bank and the P 11 D was always a hassle, as my employer listed things that were purely for work use, no personal benefit :mad:

dwsjarcmcd

If the mortgage was available to anyone it isn't a staff mortgage and shouldn't be taxed as a Benefit in Kind. Is it still available to anyone? If so, then I think you have a case.