Staff Mortgage Benefit in Kind

katie25

Hi

Sometime ago I worked for a bank and transferred my mortgage onto their then staff mortgage rate.

At the time of changing I was on maternity leave and subsequently left the company but at present my staff rate still remains.

Having left the company I expected my rate to be switched to their variable rate but as yet (3 years later) it still hasn't.

My 1st problem is I note that this was a benefit in kind, but I hadn't actually notified the IR at the time, and was wondering since leaving the company how do I stand with this now?

My 2nd is... I did notify my employer of leaving of all my staff products at the time so would it be possible on discovery for them to reclaim any money from me for being on the incorrect rate?

Any advice on this would be great!

ps. sorry if this is in the wrong place!

jimmo

Your staff mortgage was a benefit in kind whilst your employment existed and until the end of the tax year during which your job ceased.

http://www.hmrc.gov.uk/manuals/eimanual/eim26102.htm

It will not be a benefit in kind for any subsequent tax year because you had no employment to which the benefit in kind could be related.

However, depending on your own circumstance, it is possible that that the continuing benefit is a termination benefit. But you would only need to worry about that if you received a termination package in excess of £30,000.

http://www.hmrc.gov.uk/manuals/eimanual/eim13030.htm

If HMRC have failed to assess the benefits in kind for your working years you are obliged to notify them.

If your former employer has made a mistake allowing you to continue your staff mortgage that is nothing to do with tax and is of no concern to HMRC

Talktotheanimals

Hi what happened with this? I am in a similar situation I think my old employer has not changed my rate despite me speaking to the mortgage advisor when I sorted my staff accounts out. She said I would be notified in writing when my rate was changing and that is can take months for them to do this. I also rang HR who were not at all helpful and just said they don't give advice on mortgages. It has now been 2 years and we have never received anything! I am going into the branch tomorrow to discuss it and I wondered what your outcome was? Thanks