Taxable Benefit via employer...

gadgetboy00

Hi all,

trying to understand a taxable benefit. I have noticed on my employers benefits site I get £766 per year of 'taxable benefit'.

For my understanding when calculating my tax home pay as an example...

Earn £20,000
Taxable benefit is £766

Do I add the two together to enter in salary calculators to find out my net pay per month i.e. do I enter £20766?

I have two columns - one says over £4000 of deductions and another column totals £766. The larger one is for pensions, childcare vouchers etc which all come off before tax.

However the taxable benefits one I am assuming you add to your salary and then its taxed?

skintandscared_2

I believe a taxable benefit is something you get from your employer which is not included in your salary but which is taxable. It's usually things like BUPA cover, gym membership or something like that. You must receive some form of benefit on top of your salary which costs that amount per year and it will be included on your annual P60 and you'll be taxed on it. Usually your tax code will be reduced to take account of the benefit.