Benefits in Kind

skid112

Apologies in advance if this has been posted before, I did a search and couldn't find anything relevant.

I get some BiK, health insurance, death in service & spouse insurance. My issue is that these are all taxed at source and I do not receive a P11D, but HMRC has been adding a deduction to my tax code for the health insurance but nothing else. After a number of fruitless calls to the tax office they have finally agreed last week to remove the health insurance deduction from my tax code but refuse to look back over previous years as this 'is a new rule only from last year where employers can tax at source'.

I would be more than happy to pay the extra tax if it was/is due, my employers say it isn't, the tax office say it is.

Can any of you wise people assist please?

Darksparkle

I thought payrolling benefits in kind was only starting this April.

There was some informal arrangements before now but from what I understand a P11D was still required each year.

skid112

Hi,

my employer has an arrangement with HMRC where all taxable benefits are included within the remuneration in the gross figures. For some BiK these are not included, such as the bicycle scheme and interest free loans for season tickets over £5,000. All others are included, including health insurance.

Darksparkle

skid112 wrote: »

Hi,

my employer has an arrangement with HMRC where all taxable benefits are included within the remuneration in the gross figures. For some BiK these are not included, such as the bicycle scheme and interest free loans for season tickets over £5,000. All others are included, including health insurance.

They would still have been required to provide a P11d though until the new service comes in April.

https://www.gov.uk/guidance/paying-your-employees-expenses-and-benefits-through-your-payroll

skid112

Ok so the system is changing, got it. My employer has been payrolling these for some years. (just under 10,000 employees) and not providing P11d's as standard to employees but providing this information to HMRC.

I will just call the tax office again

thanks

Darksparkle

If that doesn't work I'd write to them about each year breaking down the figures etc.

I believe 2011/12 is the furthest you can go back.

skid112

A little further information from HR & Payroll

"In (deleted) your benefits are taxed at source (through payroll) to eliminate the need of a P11D and also any amendments to your tax code. We do not need to report your benefits separate to HMRC as the amounts are included in your taxable pay on your P60"

The taxman is looking into my query, which does date back to September 2012.

thanks for the help

skid112

Is there a simple way of working out whether I have paid the correct tax for last year? This goes back to the original inquiry on this as HMRC refuse to accept my arguments even though the actual tax I have paid is more than £7000 than their records.

Thanks for any help

Darksparkle

Have you received your p60 yet?

skid112

Yes i have it, it doesn't correspond with their numbers hence the question

Darksparkle

skid112 wrote: »

Yes i have it, it doesn't correspond with their numbers hence the question

Send them a copy? And copies of your payslips to back it up.

Could be that your employer has made an incorrect RTI return to HMRC.