Private Medical on PAYE and SA

divine_madness

Hi

On my PAYE Coding notice for 2010-11 it deducts from my allowance an amount for the private medical my company provide.

This figure is also on my P11D.

When completing my self assessment do I need to put this figure in the box for private medical, will it work out that it has already being taken from my PAYE coding. As there is no place to input the PAYE coding I can only assume it already knows about it which would make sense as it should be part of the same tax systems.

Thanks

Careful_ly

Yes you need to input the figures for any benefits you get from your P11D. Your coding is not entered.

Don't forget to enter any taxable interest from bank/buillding society accounts you have, as if you are a higher rate tax payer there is additional tax to pay.

Basically they start from scratch and make sure the tax deducted through PAYE was correct.

Supernells

Hello,

I've just found myself with exactly the same question and with HMRC on strike today, I have failed to get an answer.

My medical benefit amounts to £3000 and so by including this in SA, it says that I have £1000 to pay today.

I can see that the £3000 is included in my current tax code and the tax is being deducted through the PAYE system. I don't see why I should have to input it twice. They obviously have received the information already from the form P11d from my employer and have actioned it already.

Did you solve the mystery and if so, could you let me know how you did it?

JRG

Supernells:

For a basic rate taxpayer whose tax code DIDN'T include a £3000 deduction, then an entry of £3000 in their SA would generate a maximum figure of £600 (i.e. £3000 x 20%) for underpaid tax.

Is their any untaxed income in your SA (e.g. interest received gross, State Pension, etc.), or are you a higher rate taxpayer? Either of these situations could generate a figure for underpaid tax unrelated to your medical benefit.

Mikeyorks

Supernells wrote: »

I can see that the £3000 is included in my current tax code and the tax is being deducted through the PAYE system. I don't see why I should have to input it twice.

You're not inputting it twice. It's an annual benefit? So the SA is reflecting 10-11. And the 'current tax code' is picking up the tax due on it for 11-12.

Leave it out of SA, whilst reflecting pay / tax from your P60, and you're submitting a deliberately incorrect return. You will artificially create an overpayment - which will then be reclaimed.