Benefit in Kind - P11d form

smej

Can anyone advise how this works? My new job offers things like private medical insurance as a BIK. From what I can gather the company pays this cost up front and at the end of the year issue a P11d form and payment gets taken from my gross salary.


So, just working roughly, if the benefit costs £2,000 for the year I will pay
£2,000 * 20% = £400
of my take home pay?


Thanks

xylophone

See http://www.litrg.org.uk/tax-guides/employed/employment-benefits-and-expenses/what-are-benefits-kind

paulypost

Correct calc, bang on, but it's usually taken off your HMRC Notice of coding with the effect that you pay for it each payroll period thru PAYE

Dazed_and_confused

Wouldn't it be

1000 x 20% and
1000 x 40%

Which totals £600 extra tax?

Darksparkle

Dazed_and_confused wrote: »

Wouldn't it be

1000 x 20% and
1000 x 40%

Which totals £600 extra tax?

As OP has gave no info on the rest of their taxable income there's no way to say what rate should be used.

I'd assume OP has already taken that into account and remains a basic rate taxpayer therefore it would all be 20%

Dazed_and_confused

So is there no way to say what rate is correct or are we assuming?

I know it's probably 20% but life isn't always that simple and without some additional detail it's all guess work