PD11 medical

Penllys

Can anyone explain to me why I have an amount deducted on my tax code for medical cover, and also have to declare a benefit in kind through my PD11. I thought the tax code adjustment addressed the benefit?
Thanks in advance

p00hsticks

Penllys wrote: »

I thought the tax code adjustment addressed the benefit?

It does - but the P11D tells HMRC how to adjust the code.

The P11D is produced by your employer to tell HMRC (and you) what benefits in kind you have recieved for the tax year just gone.

When HMRC recieve it, they'll (usually) adjust your tax code for the current year so that you'll automatically pay the tax that is due on those benefits via PAYE

Penllys

Thanks for the resposnes. When you declare the amount on the PD11 in your tax return, this is included as benefit and included in your total salary.

So, I'm paying through my tax code and benefit in kind.
??????

Penllys

So, are you saying that if I had medical 'treatment' for £5000 then the tax man would claim that back from me?

xylophone

https://www.gov.uk/paye-forms-p45-p46-p60-p11d/p11d

The completion of a P11D is the employer's responsibility - the employee gets a copy.
http://www.hmrc.gov.uk/paye/exb/overview/forms.htm
http://p11d.org/

Your BIK are taxable - the amount of tax you need pay is reflected in your code.

You are not paying tax twice if that is what is concerning you?

zagfles

Horseunderwater wrote: »

You get the P11D at the end of the tax year and the tax that is due is coded into your code on a previous year basis. So if you had say £150 worth of medical cover and only used say £17.50 for one dental checkup - you would only pay tax on that £17.50 - but that will not be known until years end of the current year. So in my example - had I been to the dentist and only claimed back that £17.50, then I would after the P11D is sent in have a new notice of coding set by the tax office to collect the tax due on that £17.50 in the next tax year. So anything you had medical cover for in 2011/12 and used will be collected iin 2012/13 and so on. Unless you do not use it of course.

That's not the way it usually works. If it's medical insurance, then the benefit is the cost of the insurance policy, it makes no difference how much/whether you use it.

p00hsticks

Penllys wrote: »

Thanks for the resposnes. When you declare the amount on the PD11 in your tax return, this is included as benefit and included in your total salary.

So, I'm paying through my tax code and benefit in kind.
??????

I don't inderstand what you are saying here...

Unless you're in a salary sacrifice scheme, then benefits in kind are not 'included in your total salary'. They may be part of your total employment package that you agreed when you took the job, but thats not the same.

For example, say your employment package is made up of a salary of £30,000, private medical insurance and use of a company car.

Income tax will be taken off your £30,000 salary via PAYE each month.

To ensure that you are also taxed on your 'benefits in kind' (in this case, the medical insurance and comany car), the employer produces a P11d form at the end of the year, which tells HMRC what the value of these benefits are. HMRC then revise your tax code and lets your employer know, so that the following year your monthly deductions via PAYE include a bit of additonal tax to cover your benefits from the previous year.