Tax question

Possession

I can't find the right board for this, so I apologise if it's in the wrong place. Quick question: I've worked for the same (small) company for 18 years. They have paid medical insurance for me in that time. I have just been asked (by them) if I complete a tax return for these benefits - I don't, and had no idea I had to. A bit of googling leads me to suspect they should have been issuing me with a P11D every year but they never have. They have new auditors who I assume must be there at the moment (I work from home) and have brought this up. I'm hoping this isn't something I'm going to get in trouble for, but also worried that I'm now going to be suddenly liable for a lot of back-tax. Can anyone shed any light on this for me please?

Possession

HMRC did actually inform me I didn't need to submit one about 8 years ago - prior to that I had completed one as we owned a rental property. Health benefits would have been declared and nothing has changed since then (except that I assume the cost of the insurance has gradually risen each year). I'm not trying to shift blame, I'm trying to find out what was the correct procedure here, when the health insurance is arranged and paid for by the company.

dodger1

I believe your company should have informed HMRC at the end of each tax year if not sooner, your tax code is then adjusted. You can tell HMRC yourself if you wish but I don't believe you need to fill out a tax return yourself, neither of my daughters do and their tax code is automatically reduced each year to allow for their health insurance.

If you start or stop getting a taxable company benefit

If you start to get taxable company benefits - for example if you change jobs - you should tell HMRC right away so that you don't get a large tax bill at the end of the year. (Employers don't have to tell HMRC about any company benefits you get until the end of the tax year, unless it's a company car.) HMRC will adjust your code number and start collecting all or some of the extra tax sooner - see the section 'New company benefits and your tax code' for more detail on how this works. If you get a company car or change your company car, you only need to report the details to HMRC once you have the use of the car.

Possession

OK thanks, nothing has changed for me for 18 years, and I have completed tax returns within that time, so I don't know how this is going to pan out. One of the problems of a company of only 4 people and no finance dept I suspect.

xylophone

http://www.hmrc.gov.uk/incometax/codes-company-benefits.htm
would be worth a look.