a big burp/mistake on my tax

soffie

ok so if you get for example a basic pay of £2000- and minus off a pension contribution of £150 (for example) so have total earnings as £1850 before tax etc

but..
on your taxable income to date this is £30 higher then listed so £1880 because they have added a medical benefit but this is noted as shown but not paid.. have i been taxed at a £30 higher rate so lost more money?
i am very confused-

Caz3121

has your tax code been reduced to account for the private medical?

soffie

Caz3121 wrote: »

has your tax code been reduced to account for the private medical?

No. i think it is a additional company benefit paid by them for us, to be honest it is not something i have used.


my tax code is 1381m (12500 + 1250 + 60) marriage allowance and uniform cleaning added so no adjusted tax code.


I am very confused as the medical benefit has a * by it and underneth it basically says not paid and that is reflected in the math and for example it is £2000 earnings before tax.. however you then go to taxable income this year and they have added this £30 making it £2030. the tax i paid thru calculators reflects that of a £2030 wage instead of £2000 its not a massive difference but its also not the point.


*i have just done a listen to taxman calculation.. basically it is showing that by adding the £30 on at the bottom of taxable income it has upped my tax by £6 a month. however ni matches...


so if i earned the £30 more the tax i have paid matches but the NI does not..
the NI matches the original earnings before tax without the £30..


ill write the actual figures.
if i do the tax year to date figures where they have added the £30 it has it at £425 + £307 ni
i paid £425 and £303 ni
if i do actual earnings where it is stated this £30 is not paid it says only £419 tax and £303 ni.
so long short paid an extra £6 tax?


the medical benefit is written as such *medical benefit*
*notional pay items have been shown but not paid*

kikkime

My company gives some benefit on top of my basic salary, rent and travel expenses. I am being taxed for them.

soffie

kikkime wrote: »

My company gives some benefit on top of my basic salary, rent and travel expenses. I am being taxed for them.

Thanks i would agree but on Earnings it has £2000 for example after pension etc...


then right at bottom for tax year to date it has £2030. so for some reason my earnings are £2000 but my taxable income to date is £2030


the £30 medical benefit is writen as follows
*notional pay items have been shown but not paid*
which corrilates with the earnings being £2000 for example but it does not corrilate with the taxable year to date showing this £30 added?

Dazed_and_confused

It looks like you have (taxable) medical benefit of £30 included in that payslip. Hence the extra £6 tax (£30 x 20%).

Some companies now "payroll" benefits rather than send HMRC a P11D each year.

If you had a P11D employer your tax code would be adjusted (reduced) instead. So you pay the extra £6 either way. Your employer's method probably means there is less scope for getting in arrears with tax.

soffie

Dazed_and_confused wrote: »

It looks like you have (taxable) medical benefit of £30 included in that payslip. Hence the extra £6 tax (£30 x 20%).

Some companies now "payroll" benefits rather than send HMRC a P11D each year.

If you had a P11D employer your tax code would be adjusted (reduced) instead. So you pay the extra £6 either way. Your employer's method probably means there is less scope for getting in arrears with tax.

Thanks it just seems really off. its like we are now taxed more then we was 2018, when apparently the tax threshold has increased and we should have more of our own money left over? very weird

p00hsticks

soffie wrote: »

Thanks it just seems really off. its like we are now taxed more then we was 2018, when apparently the tax threshold has increased and we should have more of our own money left over? very weird

But you are now getting some sort of medical benefit in kind which you presumably didn't get before ?

If you don't want to pay the extra tax is there an option to opt out of getting the benefit ?

It's certainly worth finding out a bit more about what you are getting for your money - medical benefits can be very helpful if you know what they are and how they can be used, particualrly with long NHS waiting lists for minor / non-essential treatments

sheramber

Medical benefit shows as notional be cause you are not given the extra money in your hand. Instead, it is paid to the benefit company on your behalf, by your employer.

You are taxed on it as if it extra pay.

soffie

sheramber wrote: »

Medical benefit shows as notional be cause you are not given the extra money in your hand. Instead, it is paid to the benefit company on your behalf, by your employer.

You are taxed on it as if it extra pay.

with running thru the figures for 2019 it looks like tax wise, i will be paying £10 extra a month for this £30 medical benefit.. difference between normal wage and wage with medical benefit worth £30 a month is pretty much dead on £10.? just cant work out why?

Dazed_and_confused

What has changed since your earlier post where the tax was £6 extra?