Taxed at source on benefits.

happyandcontented

A couple of questions re taxation.

If you earn just under 100k before P11D benefits do you need to do a self-assessment?

If you earn just over 100k and P11D benefits are taxed at source do you need to do a self-assessment?

If your Accountant files the return is it necessary to pay the tax they deem is owed or can HMRC be the arbiter and send you a payment notice just as they would if you had completed your own return?

Long story short my OH is having a difference of opinion with his Accountant re whether he owes tax from the last tax year as previously he had overpaid tax as his employer took the tax at source on his benefits and his tax code was such that it was accounted for there too.

Eventually, his tax code was adjusted to refund the overpayment and HMRC were happy. His new Accountant ( he has recently become a Contractor) cannot get their heads around this and are adamant that he has underpaid on his PAYE. Despite emails back and forth we cannot seem to sort it out and obviously time is of the essence now.

Any help appreciated.

TheCyclingProgrammer

You’ll need to post detailed figures in order for anyone to give you useful advice I’m afraid.

00ec25

benefits are part of your taxable income so yes, if they mean the total taxable income is >100k, you are required to submit a tax return

if your OH has appointed an accountant to file the return for him then instruct the accountant not to file it and let OH do it himself, assuming OH is registered for self assessment in his own name and can file an online tax return himself?

Then "the system" will work out what tax is due, although of course it will do so based on the figures he inputs so if there is a prior year "adjustment" which he has paperwork to support then let him enter it correctly as the HMRC system won't populate it for him.

happyandcontented

Yes, he is registered but he has given HMRC the authority to deal with the Accountants now. We are leaning towards just paying it and letting HMRC refund if it is due. However, we are not sure we have that much faith in them as recent experience with them hasn't been good.

BoGoF

As has been said, if you want advice figures would be good.