Deduction of tax at source on medical benefit

corky2

Hello all

I think I am going mad, but in my last job my payslip showed income less all my benefits (medical benefit etc) so the benefit was taxed at source. I never received a P11D

In my current job, they prepare P11Ds and I am paid gross, with a full code because the medical benefit hasn't been adjusted for yet

Is there a technical term for the former so that I can ask HR why it isn't applied as it seems to be a waste of time preparing P11Ds when everyone gets the same medical cover so surely it can just be shown on the payslip taxed at source by the company i.e gross pay less taxable benefits = net pay??

pjclar02

No - because medial insurance is a benefit-in-kind which is liable to class 1A National Insurance, which can only be collected through the P11d process (assuming the employer contracts with the medical company and pays the premiums directly).

corky2

Thanks PJClare02

That has really helped.