Payslip hell - Definition of "Taxed At Source"?

djtaylor

Hi,

I've just moved jobs and my payslip looks very different to how it used to. There's the usual "Payments" and "Deductions" columns, and taking the sum of one column from the other gives me my net pay. All well and good.

BUT! There's an additional information box on the slip saying "Taxed At Source" which shows stuff like fuel card, company car benefit and medical plan; each with a figure against.

I've spoken to payroll and thought I understood the explanation but I'm not sure now and don't wont to sound like an idiot and ring them back!

Can someone explain what this "Taxed At Source" box is showing me? Don't want to end up with a big tax bill at the end of the year!

yus786

Fuel card, company car benefit and medical plan's are all benefit in kind.

Many employers report these benefits on a P11d each year. This P11d gets sent to the IR around July the following year (so for 2004/2005 tax year - it'll be July 2005) and they adjust your tax code accordingly.

Tax at source means you will NOT get a P11d and basically tha tax from your benefit will be taxed each month from your payroll.

Hope this helps

sarahlouise210

yus786 wrote:

Fuel card, company car benefit and medical plan's are all benefit in kind.

Many employers report these benefits on a P11d each year. This P11d gets sent to the IR around July the following year (so for 2004/2005 tax year - it'll be July 2005) and they adjust your tax code accordingly.

Tax at source means you will NOT get a P11d and basically tha tax from your benefit will be taxed each month from your payroll.

Hope this helps

Taxed at source means that the tax due is taken directly out of your wages -to make sure this happens a deduction would need to be already in your tax code-tax is deducted through your pay on the benfits you receive like pay as you go! You WILL receive a P11D at the end of every tax year - everyone who receives company benefits MUST be supplied with a P11D showing their taxable benefits.It is not optional. You will receive your own copy and HMRC will receive a duplicate. The entries on the P11D will be compared to the amounts in your tax code which are often estimated and any adjustments will be made if necessary.