Benefit in kind - nasty suprise from previous employment

Eightball

Hi

I've had a letter through from the tax man funnily enough asking for more. They reckon I had a benefit in kind at my last employment that should of been taxed - the only thing I can think off was health insurance, which annouyingly I never used or asked for, but I get the tax man is not concerned with that, only that I had it.

In with this calc came and advice sheet, which had a statement saying "if you think your employer has made a mistke or not taken reasonable care to operate the correct tax code, they may have to pay it for you."

Know what I want to know is

a. can I find out exactly what the benefit was to confirm my suspisions
b. do I stand a chance of claiming they have been negligent?

Ian

System

Eightball wrote: »

Hi

I've had a letter through from the tax man funnily enough asking for more. They reckon I had a benefit in kind at my last employment that should of been taxed - the only thing I can think off was health insurance, which annouyingly I never used or asked for, but I get the tax man is not concerned with that, only that I had it.

In with this calc came and advice sheet, which had a statement saying "if you think your employer has made a mistke or not taken reasonable care to operate the correct tax code, they may have to pay it for you."

Know what I want to know is

a. can I find out exactly what the benefit was to confirm my suspisions
b. do I stand a chance of claiming they have been negligent?

Ian

I can only offer very general advice but what I can say is your employer would not be required to notify HMRC of the benefit until after the end of the first year they made it available.

Eg if you first received the benefit during 2010-11 they'd let HMRC know after 5 April 2011.

Basically under our tax system it's ultimately the employee/taxpayers responsibility to notify HMRC of any changes in their circumstances. The employer would not normally deduct tax in respect of medical benefit until HMRC included it in your tax code. But they can't do that until they are aware of the benefit.

As for point A, the former employer should have given you a copy of the P11D they sent to HMRC to declare your benefit. If you don't feel comfortable speaking to your former employer, HMRC might be able to send you a copy of the info they received.

CLAPTON

did you know you had health insurance?

did you receive a P11d from your employer at year end?
this tells you your benefits in kind